On 21 February 2025, Government of Karnataka rolled out the Premium FAR policy which was released on 04 January 2025 for public scrutiny. Government of Karnataka vide Gazette Notification No. UDD 78 MNJ 2024 (E) dated 21.02.2025, has amended certain regulations with respect to Premium FAR in Zonal Regulations of Revised Master Plan 2015 of Bangalore.
Introduction
- As per the Gazette notification, a new chapter is inserted (after chapter 10) namely "PREMIUM F.A.R GRANTED BY LEVY OF PREMIUM CHARGES" in the zonal regulations of the approved Revised Master Plan-2015 of the Local Planning Area of Bengaluru.
- The revised Premium FAR norms are governed under Karnataka Town and Country Planning Act, 1961 (Section 15).
- Premium FAR refers to the additional built-up area that a developer can acquire over and above the permissible FAR, by paying a premium charge to the Authorities who accord permission for development of building or land under section 15 of Karnataka Town & Country Planning Act, 1961.
- The introduction of Premium FAR provides a structured mechanism for builders to acquire additional Floor Area Ratio (FAR) by paying a premium charge, allowing for higher-density developments.
- This policy change is applicable to areas under the jurisdiction of the Bangalore Development Authority (BDA), Bengaluru-Mysuru Infrastructure Corridor Area Planning Authority (BMICPA), Anekal, Kanakapura, Ramanagara, Channapatna, Magadi, Nelamangala, Bengaluru International Airport Area and Hoskote.
- Development authorities who are responsible for issuing additional FAR with respect to Premium FAR are Bangalore Metropolitan Region Development Authority (BMRDA) and Bangalore Development Authority (BDA) and the other Local Planning Authorities. The Local Planning Authority responsible for issuing the plan approval for the site must be reached out for availing additional FAR under the Premium FAR policy.
Additional FAR Available for Utilization For Development By Purchase Of Premium FAR
- The Premium FAR is granted based on road width criteria of minimum width of 9 meters. This policy enables developers to obtain up to 20 per cent to 60 per cent higher FAR (through Premium FAR and TDR) than the standard permissible limit.
- Below table provides the maximum permissible additional FAR in Premium FAR Policy:
Road Width (where
Premium FAR may be
Issued) (in m) |
Maximum Permissible
Additional FAR for a
Property for which
Premium FAR by levy of
Charges is Granted |
Criteria for Maximum Permissible Additional FAR |
Maximum Additional
Premium FAR which
may be granted by
levy of Charges |
Additional FAR which may be availed
using Development Rights Certificate
(DRC) / Transfer of Development Rights
(TDR) along with the Premium FAR |
| More than 9m, Upto 12m |
0.2 |
0.2 |
NIL |
| More than 12m, Upto 18m |
0.4 |
0.3 |
0.1 |
| More than 18m |
0.6 |
0.4 |
0.2 |
- Entries in column (2), (3) and (4) are in multiples of permissible FAR.
- Note: If Premium FAR is used for a property then as per above table the maximum permissible additional FAR shall be Col (2) and the said maximum additional FAR should be taken subject to maximum limit on Premium FAR as per Column (3) and anything more than that should be utilized from the DRC / TDR.
Computation of Premium FAR Charges
- The cost of availing additional FAR under this policy is determined based on the Guidance value of the built property on land and the notional Site area required for additional construction intended by the developer.
- Guidance Value at building site shall be latest developed site rates as on the date of issue of Utilization Certificate for the Premium FAR granted by the levy of premium charges and for the use that the property is put to or sought to be put to and as published in the Gazette Notification by the Government of Karnataka under the Karnataka Stamp Act 1957.
- The cost for Premium FAR is computed as
- 50 per cent of the Guidance Value of the developed site of the additional notional sital area, provided that the Premium FAR charges per SqM of additional built area is not less than 28 per cent of the developed site Guidance Value per SqM of the site on which building is proposed.
- Below is the sample cost illustration provided in the Premium FAR Policy.
| Parameter | Formula | Value | Units |
| A. Area of the site / Plot where Premium FAR is sought |
|
10,000 |
SqM |
| B. Latest Guidance Value of the Developed site at Plot as per Notification u/s 45B of Karnataka Stamp Act 1957 |
|
₹ 5,000 |
Per SqM |
| C. Coverage Allowed on each Floor (say) |
|
50% |
% |
| D. Area of Each Floor |
= A x C |
5,000 |
SqM |
| E. Allowable FAR |
|
2.5 |
|
| F. Allowable total FAR area (Permissible FAR) |
= A x E |
25,000 |
SqM |
| G. Permissible number of Floors |
= F / D |
5 |
Nos |
| H. No. of Extra Floors desired by the developer (for illustration purpose) |
|
2 |
Nos |
| I. Additional FAR Area to be constructed through Premium FAR |
= H x D |
10,000 |
SqM |
| J. Additional FAR Area required as Premium FAR (Notional Area) |
= I / E |
4,000 |
SqM |
| K. Premium FAR as ratio of the otherwise allowed FAR |
= I / F |
0.4 |
|
| L. Premium FAR as % age of Permissible FAR (this is within allowed limits of Premium FAR as per table provided above) |
|
40% |
% |
| M. Value of the Notional Land for additional 10,000 SqM to be constructed using Premium FAR |
= J x B |
₹ 2,00,00,000 |
INR |
| N. Premium FAR charges 50% of GV of the Notional Land (4,000 SqM) |
= M x 50% |
₹ 1,00,00,000 |
INR |
| O. Per square meter rate of the additional 10,000 SqM built up area |
= N / I |
₹ 1,000 |
INR Per SqM |
| P. Lower Floor Cap for per sq meter cost of additional 10,000 SqM @ 28% of the GV Rate of the Notional Land |
= 28% x B |
₹ 1,400 |
INR Per SqM |
| Q. Final Price for additional built-up area of 10,000 SqM @ Rs.1,400 per SqM |
= P x I |
₹ 1,40,00,000 |
INR |
(Secretariat Karnataka Government Gazette Notification No. UDD 78 MNJ 2024 (E))
Note: For these rules, the term “Additional (Notional) sital area” means the additional sital area that would be required for the building additional built area as per the permissible FAR for that site.
Key Conditions
- The Karnataka government has laid out specific regulatory conditions to ensure proper implementation of Premium FAR. Developers and property owners must adhere to these rules before availing additional FAR:
- Maximum FAR & TDR Inclusion: Premium FAR cannot exceed 40 per cent of the permissible FAR. Developers must also utilize Transferable Development Rights (TDR) if additional FAR beyond Premium FAR limits is desired. Maximum inclusion for TDR is 20 per cent.
- Guidance Value for FAR Calculation: The Guidance Value used for FAR computation must be derived from developed site rates as per the latest Gazette Notification. Agricultural or undeveloped land guidance values cannot be used for Premium FAR calculations.
- Guidance Value in case of multiple Abutting Roads: In case of two or more abutting roads at building site, the highest Guidance Value provided to road abutting the building site will be considered for calculating premium charges.
- Setback Relaxation: The setback relaxation for utilizing Premium FAR shall be the same as the existing rules applicable for the utilization of Development Rights Certificate (DRC) / Transfer of Development Rights (TDR).
- In case, 100 per cent of premium FAR and TDR is loaded, the setback relaxation shall be up to 25 per cent overall relaxation in setbacks.
- In cases where less than 100 per cent of premium FAR and TDR are loaded, the setback relaxation shall be proportionate to the percentage of the premium FAR and TDR loaded.
- Non-Transferability of Premium FAR: Transfer of the Certificate of Premium FAR granted by levy of premium charges from one site/property to another shall not be allowed for any reason whatsoever.
- Non-Applicability to Existing Structures: Premium FAR cannot be applied retrospectively to existing buildings that have already received an occupancy certificate. Developers cannot use Premium FAR to add additional floors to complete or nearing completion projects without required approvals.
Transfer of Development Rights (TDR)
- The Karnataka Town and Country Planning (Benefit of Development Rights) Rules, 2016 was published as required by sub-section (1) of Section 74 of Karnataka Town and Country Planning ACT, 1961 in Notification No. UDD 283 BEMRUPRA 2015 dated 4th March 2017.
- As per this rule, Issuance of Development Rights (DR) is within the purview of BDA.
- TDR means the Development Right (DR) given in the form of ‘Notional Land’ (means Development Rights (DR) in theoretical form and not in real/physical form) to an owner, which can be sold or disposed of or utilized elsewhere in the Local Planning Area.
- The DR of the ‘Area’ surrendered in the form of ‘Notional Land’ shall be permitted as TDR only after factorizing the Market Value of the Originating Plot (the plot in which Development rights are originating due to surrender of ‘Area’) and the Receiving plot (the plot in which Development rights are utilized).
Concerns
- The properties located along existing metro corridors were eligible for certain benefits of additional FAR or relaxation in parking facilities. Clarity on this subject is not provided in the policy document.
- A thorough buildability analysis needs to be conducted – understanding the setback rules and parking requirements before availing the premium FAR.
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