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• The Karnataka High Court has upheld the state's Premium Floor Area Ratio (FAR) framework, dismissing challenges that questioned its constitutional validity.
• The court ruled that the policy cannot be equated with the controversial Akrama-Sakrama regularisation scheme, which dealt with unauthorised constructions.
• Judges observed that the Premium FAR mechanism allows additional development rights through a statutory process and payment of prescribed charges before construction.
• The decision provides legal backing to a planning tool widely used in Bengaluru and other urban areas to optimise land use and support infrastructure-led growth.
The Karnataka High Court has upheld the validity of the state's Premium Floor Area Ratio (FAR) policy, ruling that the framework for granting additional development rights upon payment of prescribed charges does not amount to regularisation of unauthorised construction and therefore cannot be compared with the erstwhile Akrama-Sakrama scheme.
The ruling came while the court was examining petitions that challenged provisions enabling planning authorities to permit developers and landowners to utilise additional built-up area beyond the standard FAR limits by paying a premium. Petitioners had argued that the mechanism effectively rewarded excessive construction and was similar in nature to policies aimed at legitimising building violations.
Rejecting these arguments, the court drew a distinction between the two frameworks. It observed that the Premium FAR system operates within the statutory planning regime and grants additional development potential through prior approval from competent authorities. In contrast, Akrama-Sakrama was conceived as a mechanism to address existing unauthorised developments and building violations after they had already occurred.
The bench noted that Premium FAR forms part of urban planning regulations and is intended to regulate future development rather than condone past breaches of planning norms. The policy allows landowners and developers to seek enhanced development rights subject to compliance with zoning regulations, planning requirements and payment of fees determined by the authorities.
The court also examined concerns relating to property rights and the broader public interest implications of the policy. It held that the framework does not infringe constitutional protections relating to property ownership, observing that urban planning authorities possess the power to regulate land use and development through legally established planning instruments.
Premium FAR has become an important component of development regulations in Bengaluru, particularly in locations supported by major infrastructure investments and transport networks. The mechanism enables planning authorities to permit higher development intensity in selected areas while generating revenue that can be utilised for infrastructure creation and urban improvement initiatives.
The judgment is expected to provide greater regulatory certainty for ongoing and future real estate projects that rely on Premium FAR approvals. Developers, landowners and investors had been closely monitoring the proceedings because of the potential implications for projects involving higher permissible built-up areas.
Urban planning experts note that Premium FAR policies are commonly used in rapidly growing cities to accommodate increasing development demand without requiring extensive expansion of urban boundaries. By linking additional development rights to a fee-based approval process, authorities seek to balance growth requirements with infrastructure planning and resource allocation.
With the High Court affirming the legal validity of the framework, the Premium FAR policy is expected to continue functioning as a key planning instrument for managing urban growth and development intensity across Karnataka's urban centres.
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