BENGALURU: Karnataka government’s long-pending plan to introduce premium floor area ratio (FAR) has now taken concrete shape under the Greater Bengaluru Authority (GBA), signalling a major shift in the way the city manages its limited urban land.
The move follows a December 5 order of the High Court, which dismissed two petitions challenging the amendments and upheld the GBA framework. With the legal hurdle cleared, the authority estimates that premium FAR could generate close to ₹2,000 crore in annual revenue across the five municipal corporations within its jurisdiction.
Senior GBA officials said the mechanism is designed to strike a balance between higher development intensity and existing road capacity. While proponents see it as a pragmatic planning tool, critics are expected to closely monitor whether the premium FAR regime remains fair, transparent, and sustainable for Bengaluru’s long-term urban growth.
The idea of premium FAR was first floated on March 16, 2024, when the Urban Development Department released a draft amendment to the Karnataka Planning Authorities Rules, 1965, seeking public objections within a week. The draft proposed allowing developers to double the permissible built-up area by paying a premium equivalent to at least 50% of the expected increase in property value arising from the additional FAR.
According to senior officials, including Additional Chief Secretary (Urban Development) Rakesh Singh, the objective was to bring widespread unauthorised additional floors within a regulatory framework and promote more orderly redevelopment, particularly in older neighbourhoods. Members of the Karnataka Real Estate Regulatory Authority (RERA) supported the move, saying premium FAR could help rejuvenate ageing buildings, though the proposal also attracted criticism.
Nearly a year later, the policy has moved from draft stage to implementation, with the GBA operationalising premium FAR across its jurisdiction. The legal provision allows additional FAR in exchange for premium charges linked to official guidance values, providing a clear basis for developers to seek higher built-up areas.
Under the new system, the extent of additional FAR will depend on the width of the adjoining road. Municipal bodies will calculate and inform developers of the applicable premium while issuing building fee intimations. Developers can factor premium FAR into their building plans, and approvals will be granted once all prescribed charges are paid.
