The Karnataka government’s recent decision to introduce a premium floor area ratio (FAR) policy, enabling builders to add extra floors by paying 28% of the guidance value, has raised concerns among urban planners and citizen groups.
Credit: DH Photo/Pushkar V
Bengaluru: The Karnataka government’s recent decision to introduce a premium floor area ratio (FAR) policy, enabling builders to add extra floors by paying 28 per cent of the guidance value, has raised concerns among urban planners and citizen groups in the city.
While this move is seen as a potential boon for the construction sector, there is a growing fear that the policy could be exploited.
Resident activists have expressed apprehension about the policy’s "grey areas", particularly when it comes to applying the premium FAR to unfinished projects or legalising illegal constructions.
In fact, an urban planner said the government should not leave any grey areas as it could lead to misinterpretation by officers on the ground.
Among the 24 conditions laid out in the policy for premium FAR usage, one section states that it can be applied to future projects.
The policy notes: "Certificate for Premium FAR granted by levy of premium charges shall be surrendered to the authority sanctioning or approving the development plan under Section 15 of the KTCP Act, 1961, before the release of plan sanction for the building on which Premium FAR is loaded.”
The policy, however, leaves several important questions unanswered.
There is no clear direction on whether premium FAR can be used when builders request changes or revisions to an approved plan in the future. Moreover, it’s also unclear if projects under construction or awaiting an occupancy certificate can purchase premium FAR to add more floors.
If such allowances are made, it could create problems for homebuyers who have already made full or partial payments, but have not yet taken possession of their homes.
Officials from the Bangalore Development Authority (BDA) and Bruhat Bengaluru Mahanagara Palike (BBMP) appear to be uncertain about how the policy applies to buildings that have received plan approval, but remain unfinished.
One official noted, “The minister will decide on these issues.”
A retired revenue officer pointed out the policy’s many ambiguities, but also clarified that projects that have already received an occupancy certificate will not be allowed to add extra floors, even if premium FAR is available.
Referring to the Karnataka Real Estate Regulatory Authority (K-RERA) guidelines, he explained that builders need consent from two-thirds of homebuyers to make modifications to the original plan.
“This is a complex process, and authorities cannot simply override the will of the people,” he said.
Challenges ahead
Anil Kalgi, a member of the Bengaluru City Flat Owners Welfare Association, warned that while premium FAR may boost government revenues, the real challenge lies in enforcement.
“The policy itself is fundamentally flawed. Allowing its application to incomplete projects could have disastrous implications for citizens. There would be no provisions for parking, water, or sanitation. And what about the roads? This could destroy the city's infrastructure,” he said.