Bounty for builders in Bengaluru as Premium FAR gets HC nod across GBA limits
Bengaluru:
In a major ruling with wide-ranging implications for urban development in Bengaluru, the High Court of Karnataka on Friday upheld the State government’s decision to introduce Premium Floor Area Ratio (FAR) across Bengaluru and other planning areas, dismissing petitions challenging the legality and constitutionality of the scheme.
Justice M.I. Arun, delivering the order, rejected arguments made by landowners and TDR certificate holders who contended that the introduction of Premium FAR—allowing developers to buy additional buildable area—violated provisions of the Karnataka Town and Country Planning (KTCP) Act, undermined the Transferable Development Rights (TDR) framework, and was arbitrary in its implementation.
Petitioners had argued that the 2020 insertion of Section 18B, which enables authorities to grant extra FAR on payment of a premium, diluted the purpose of Section 14B, which mandates compensatory TDR for landowners who surrender land for public projects. They claimed Premium FAR would depress demand for TDR, harming those who had accepted TDR instead of monetary compensation.
The Court, however, held that the legislature is empowered to introduce additional modes of permitting construction and that Premium FAR does not override or invalidate TDR, which remains a valid and parallel mechanism for development rights. Premium FAR, the judge noted, is a policy decision within the State’s domain.
The ruling also affirms:
The 2025 zonal regulation amendments enabling Premium FAR across BBMP, BDA, BMICAPA and surrounding local planning areas. The FAR slabs allowing up to 0.6 times additional FAR on roads wider than 18 metres, of which part must be availed through TDR. Mandatory use of guidance value to calculate premium charges and the rule that Premium FAR, once issued, becomes non-transferable and is deemed consumed upon building plan approval.
The Court did not find any procedural lapses in the notifications issued on 21 February and 2 April 2025, which operationalised Premium FAR after considering objections.
With this ruling, the government can now fully operationalise Premium FAR across Greater Bengaluru even as the newly constituted GBA seeks to streamline approvals and generate revenue for infrastructure. Developers are expected to benefit from predictable, purchasable FAR, while TDR certificate holders may face reduced market value—a concern the Court acknowledged but held was not grounds to invalidate the law.
All major prayers—including striking down Section 18B, quashing the Premium FAR notifications, revalidating old TDR certificates, and mandating issuance of pending TDRs—were rejected.