The Karnataka High Court has upheld the state's Premium Floor Area Ratio (FAR) scheme, ruling that it cannot be equated with the controversial Akrama-Sakrama scheme meant for regularising unauthorised constructions.
Court's Ruling on Premium FAR
Dismissing a public interest litigation and a connected writ appeal, a division bench of Chief Justice Vibhu Bakhru and Justice CM Poonacha held that the Premium FAR scheme fundamentally differs from Akrama-Sakrama as it uniformly alters development regulations rather than legalising illegal structures.
In its June 15 judgment, the bench observed that the Akrama-Sakrama scheme intends to regularise unauthorised constructions or land-use conversion on payment of charges. In contrast, the Premium FAR scheme merely increases the extent of permissible construction under zonal regulations in return for payment of a premium.
Key Difference Highlighted
“The substratum of Premium FAR scheme is not to regularise unauthorised constructions but to amend the extent of constructions permissible under zonal regulations,” the bench pointed out.
The court noted that Premium FAR benefits not only new developments but also buildings that were originally constructed in accordance with law. Owners of such buildings can undertake additional construction after obtaining approvals.
The judges acknowledged that owners who had exceeded the earlier permissible limits could bring their structures into conformity by acquiring Premium FAR. However, they clarified this cannot be treated as legalisation of illegal constructions.
“Merely because a construction, which is in excess of permissible limit, stands regularised by enhancement of the limit cannot be a ground to assume it as a scheme for regularising illegal constructions,” the bench observed, adding the objectives of Premium FAR and Akrama-Sakrama schemes are “completely different”.
Demand for TDRs to Stay
The court also rejected the petitioners' contention that the Premium FAR scheme would make Transferable Development Rights (TDRs) redundant.
Referring to a 2026 government notification, the bench noted that Premium FAR is unavailable for plots abutting roads wider than 9 metres but less than 12 metres. In such cases, developers seeking an additional FAR of 0.6 times the base FAR must obtain it entirely through TDRs purchased from TDR holders.
According to data placed before the court, 85,000 of Bengaluru's 1,08,240 roads fall within this category. Given the city's acute demand for urban space, the judges said there will continue to be significant demand for TDRs.
Even on plots abutting roads wider than 12 metres, Premium FAR is capped at 0.4 times the base FAR. Developers seeking the full additional FAR of 0.6 times the base FAR will still have to acquire TDRs for the remaining 0.2 times, the court noted.
