Premium FAR framework comes into force after HC nod, set to reshape Bengaluru’s urban growth

With court approval and new regulations under the Greater Bengaluru Authority, Karnataka’s long-pending premium FAR proposal has moved from concept to full-scale implementation.

Karnataka’s long-debated premium Floor Area Ratio (FAR) proposal has officially transitioned into a fully operational policy following the Karnataka High Court’s dismissal of two petitions challenging the government’s amendments. The ruling, delivered on December 5, has cleared the way for the Greater Bengaluru Authority (GBA) to implement the framework across all five municipal corporations under its jurisdiction.

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With legal clarity now established, senior GBA officials estimate that premium FAR could bring in nearly ₹2,000 crore annually. The mechanism allows developers to obtain additional FAR, beyond the standard permissible limits, by paying a premium linked to the projected increase in property value. Officials describe the system as a balanced approach that matches development intensity with the capacity of surrounding roads and existing urban infrastructure.

The policy first emerged when the Urban Development Department released a draft amendment to the Karnataka Planning Authorities Rules, 1965, on March 16, 2024. The draft permitted developers to double built-up area by paying at least 50% of the expected value appreciation after using the extra FAR. The intent, according to senior officers including Additional Chief Secretary (Urban Development) Rakesh Singh, was to bring widespread unauthorised floors into regulation and encourage more orderly redevelopment in older localities.

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Karnataka RERA members also supported the proposal, calling premium FAR a tool that could rejuvenate ageing buildings and streamline reconstruction. However, it faced criticism from sections that questioned whether the framework would lead to over-congestion or inequitable development.

Nearly a year later, the concept has moved fully into practice. The GBA now offers premium FAR with legally backed premium charges built on guidance values. Under the operational system, the amount of additional FAR available depends on the width of the abutting road, ensuring that denser construction aligns with traffic-carrying capacity.

Municipal bodies will calculate the payable premium at the building fee intimation stage. Developers can integrate premium FAR into their plans, and approvals will be granted once all statutory fees are settled.

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