Premium FAR: Governor's nod pending, govt amends Act

The move will help builders in obtaining permission to construct additional floors quickly and free from red-tapism.

Bengaluru: With Governor Thawar Chand Gehlot yet to give assent to the legislation on premium 'floor area ratio' (FAR), the state government has drafted new rules under an existing Act to promote vertical growth in the real estate sector.

The move, expected to provide a new source of revenue for the government, will help builders in obtaining permission to construct additional floors quickly and free from red-tapism.

The draft rules notified on March 16 are called the Karnataka Planning Authorities (Amendment) Rules, 2024. While the zonal regulations of the master plan will form the basis for allowing premium FAR, builders will be allowed to load an extra 40% on top of the permissible floor area ratio by paying 40% of the guidance value. 

For instance, a 1,000 square metre plot with a guidance value of Rs 50,000 per square metre can have two extra floors (500 square metres each) by paying premium FAR charges of Rs 2 crore.

The draft rules also provide space for builders to use a combination of premium FAR and transferrable development rights (TDR) for promoting high-rise buildings. On top of the 40% premium FAR, the government will allow an additional 20% built-up area, provided the builder is in possession of TDR certificates.

A senior official in the government told DH that they have notified the draft rules on the lines of the new legislation passed in the legislative assembly as well as the council. "Since the model code of conduct is in place, the final notifications will be issued only after the elections," he said.