Realty windfall likely as Karnataka Assembly passes 'premium' FAR Bill

Bengaluru: The Karnataka Assembly on Tuesday passed a Bill allowing developers to pay a 'premium' to construct additional floors in buildings over and above what is permissible.

The Karnataka Town and Country Planning (Amendment) Bill was passed amid protests by the Opposition BJP that accused the Congress government of helping builders in Bengaluru.

The 'premium' FAR is expected to bring revenue to the government while also giving a fillip to vertical growth in the real estate sector.

FAR is the ratio of the total plot area to the total building area, and is determined by the size of the plot and width of the road in front of the plot.

According to the Bill, developers have to pay at least 40 per cent of the guidance value as premium charges for the additional FAR.

Piloting the Bill, Deputy Chief Minister DK Shivakumar, who is also the minister for Bengaluru City Development, said premium FAR is already being provided in Mangaluru.

Shivakumar stressed that the government needs money for development. "During the previous BJP government, money was collected and occupancy certificates issued saying (premium FAR) will be allowed in the future. Officers have done this," he said. "What we are trying to do is to get money for development of major infrastructure. In Mangaluru, we've collected Rs 2,000 crore over the past few years. In Bengaluru, up to two-thirds of the permissible FAR will be allowed as premium," he explained.

The Bill was taken up for discussion even as BJP lawmakers were in the well against the government's stand on the ongoing protest by advocates in Ramanagara. Speaker UT Khader went ahead with the Bill despite a request from Leader of the Opposition R Ashoka to allow a discussion on Wednesday.

Former chief minister Basavaraj Bommai described the Bill as "dangerous" and said it would make Bengaluru even worse as a city. "It will make the city more unplanned. This is being brought just to help big builders. Imagine allowing a 10-storey building to construct four more floors without the necessary infrastructure," Bommai said.

Bommai also said that when he was in office as the chief minister, he had rejected a similar legislation. He urged the Congress government to reconsider.