BENGALURU: Amid uncertainty over Premium FAR (Floor Area Ratio), all five city corporations have factored it in as a major revenue source, and are aiming to mop up over Rs 2,100 crore. “The Premium FAR issue has been challenged in the Karnataka High Court, and the matter remains sub judice with interim directions, pending final adjudication,” experts opine.
They say that already ‘Akrama Sakrama’, which regularises illegal property construction, is in the Supreme Court, and questioned the basis on which the corporations have bet big on Premium FAR, laying down plans for developmental works with the revenue generated.
“The projected Premium FAR revenue of Rs 2,110 crore shows the scale of dependence. It is being positioned not merely as a planning tool, but as a core revenue stream for the corporations,” said advocate Prashanth Mirle.
“PFAR has been challenged in the High Court, and the matter remains sub judice with interim directions in place, pending final adjudication. Therefore, when the very policy framework is under judicial scrutiny, the public is entitled to ask on what basis these income assumptions have been made, and what contingency mechanisms exist if such receipts do not materialise,” Mirle said.
He said the issue of Transferable Development Rights (TDR) exposes both market and fiscal risks, and that existing TDR holders are already facing delays in issuances and reduced demand due to the introduction of PFAR, affecting landowners who have surrendered land and builders who rely on predictable development instruments.
Civic activist and founder-member of Bengaluru Praja Vedike, NS Mukunda, said, “According to the road width, Premium FAR allows people to build additional floors. A building’s foundation is laid in accordance with the number of floors built, and adding more floors is a recipe for disaster.
Before introducing any policies like this, the civic body should have ideally carried out multiple tests, including soil tests, to know if it is feasible to allow addition of more floors.”
“Also, TDR holders are left in the lurch. Developers are not going behind TDR holders, as they are adding floors by paying Premium FAR fee to the government. So what happens to the TDRs issued?” Mukunda asked.
“At a larger level, if road widening and infrastructure projects are not executed through TDR mechanisms, corporations will be compelled to undertake direct land acquisition by paying compensation,” Mirle said.
“In a scenario where financial resources are already constrained or landowners are unwilling to opt for TDR, this shifts the entire burden onto public finances. Ultimately, this not only impacts project execution timelines but also increases costs that are passed on to end-users, raising serious concerns about sustainability and planning coherence,” he added.
Greater Bengaluru Authority (GBA) Chief Commissioner M Maheswar Rao said the state government, after taking into consideration all aspects, has introduced Premium FAR, and provisions have been made for it in the budget. “Some submissions related to Premium FAR are there. We will argue our contentions and let the courts decide,” he said.
He added that the population of Bengaluru is expected to cross 2.5 crore by 2045, and Premium FAR is needed to match the city’s growth. Rao said they should not create third-party rights under Premium FAR and have not stopped issuing TDR.
What is Premium FAR?
Premium FAR is the additional built-up area people can acquire over and above the permissible FAR, by paying a premium charge to the government. It is a move aimed at facilitating higher-density developments and optimal utilisation of high-value land within Bengaluru city limits.