Builders urge GBA to use premium FAR revenue solely for infrastructure, even as policy boosts construction and may lower apartment costs.
Credit: DH PHOTO
Bengaluru: Just a month after the Greater Bengaluru Authority (GBA) rolled out its premium floor area ratio (FAR) policy, the civic body has received six applications seeking permission to build additional floors by paying a fee.
From these alone, the GBA expects to collect about Rs 200 crore, officials said.
The scheme was formally launched last month after the Karnataka High Court upheld the policy, dismissing petitions filed by landowners who had received Transferable Development Rights (TDR) certificates. The court ruled that TDR and premium FAR are complementary mechanisms.
A senior GBA town planning officer told DH that six applications have been received so far. “We have collected around Rs 100 crore from just one builder,” the official said, adding that the policy, long in force in Mangaluru, has the potential to generate over Rs 2,000 crore annually.
The premium FAR policy, drafted by the state government last year, allows an increase in FAR of up to 60%. Of this, 20% is reserved for utilisation through TDR certificates, while developers can load the remaining 40% by paying a premium equivalent to 28% of the guidance value.
For instance, a builder owning 10,000 sqm of land with a guidance value of Rs 5,000 per sqm could, under the earlier FAR of 2.5, construct up to 25,000 sqm of built-up area (around five floors). Under the new policy, the builder can add two more floors by paying Rs 1,400 per sqm (28% of the guidance value) for an additional 10,000 sqm — amounting to Rs 1.4 crore.
The policy applies to real estate projects, particularly those larger than 5,000 sqft, in and around Bengaluru, including areas under planning authorities such as the Bangalore Development Authority (BDA), Bengaluru–Mysuru Infrastructure Corridor Area Planning Authority, Anekal, Kanakapura, Ramanagara, Channapatna, Magadi, Nelamangala, Bengaluru International Airport Area, and Hoskote.
While the policy is expected to give a boost to the construction sector and potentially reduce apartment costs, builders have urged the GBA to ensure that revenue generated through premium FAR is used exclusively for infrastructure creation.
“The authority should create an escrow account and publicly disclose how the money is utilised,” a prominent builder told DH.