Developers can now purchase premium FAR in Bengaluru

In a significant development, landowners and developers can now, for the first time, buy additional buildable space in the form of premium floor area ratio (FAR) in the city.

“The High Court of Karnataka on December 5 dismissed two petitions that had challenged the April 2, 2025, notification amending the zoning regulation. The amendment was introduced to enable more effective utilisation of high-value land within city limits and to support planned urban growth. This marks the first time civic bodies in the city can formally sell premium FAR, leading to a new revenue stream for urban development while enabling higher-density construction in suitable zones across the city,” Tushar Giri Nath, Additional Chief Secretary, Urban Development Department, said on Saturday. 

The court’s decision clears the way for the GBA to implement the premium FAR mechanism in full. Under Section 18-B of the Karnataka Town and Country Planning Act, 1961, authorities may permit additional FAR during building construction. As per the amended regulation, an additional 0.4 FAR can now be sanctioned over and above the basic permissible FAR, depending on the width of the abutting road and other planning norms. 

During a press conference on Saturday, Mr. Nath said that developers and property owners seeking building permission can now submit proposals to utilise premium FAR. Once applications are reviewed, the respective civic corporations will issue a demand for payment of the applicable premium FAR fee, in addition to other construction-related charges.

After all dues are paid, the corporation will grant building plan approval that includes both the basic FAR and the sanctioned premium FAR. The process has been designed to be simple and accessible to all stakeholders, including landowners, developers, and builders, Mr. Nath said.