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CDJ 2025 Kar HC 1846 print Preview print print
Court : High Court of Karnataka
Case No : Writ Petition No. 11201 of 2025 (LB-BMP) Connected With Writ Petition No. 6347 of 2025 (LB-BMP)
Judges: THE HONOURABLE MR. JUSTICE M.I. ARUN
Parties : N. Krishnamurthy Versus State Of Karnataka Represented By Chief Secretary Government Of Karnataka Vidhana Soudha Bangalore
Appearing Advocates : For the Petitioner: V. Srinivasa Raghavan, Senior Advocate, B.G., Nayana Tara & C.C. Chengappa, Advocates. For the Respondents: R1 & R2, Milind Dange, Aga, R3, K. Shashi Kiran Shetty, Senior Counsel, Udaya Holla, Senior Advocate, radeep C. Patil, K.B. Monesh Kumar R4, Krishna, Adithya C. Shukapuri, Advocates.
Date of Judgment : 05-12-2025
Head Note :-
Karnataka Town and Country Planning Act, 1961 – Section 18B (Inserted by Act 25 of 2020) – Section 14B – Premium FAR – Transferable Development Rights (TDR) – Constitution of India – Article 300A – Challenge to constitutional validity – Notifications under Section 13E – Writ Petitions – Petitioners (TDR holders) questioned introduction of Premium FAR alleging devaluation of TDR, excessive delegation, arbitrariness, violation of Article 300A, and conflict with Section 14B.

Court Held – Writ Petitions Dismissed – Section 18B valid; impugned Notifications and amended Rules upheld – Premium FAR does not deprive TDR holders of rights under Article 300A – Introduction of Premium FAR neither arbitrary nor contrary to Section 14B – Delegated legislation permissible; Harmonious construction required – Market impact on TDR insufficient to invalidate statutory scheme – Policy decision cannot be interfered with absent constitutional infirmity.

[Paras 15, 16, 17, 18, 19]

Keywords: Premium FAR – TDR – Section 18B KTCPA 1961 – Section 14B – Article 300A – Delegated Legislation – Urban Planning – FAR Notifications – Excessive Delegation – Constitutional Validity – Infrastructure Development
Judgment :-

(Prayer: This writ petition is filed under Article 226 of the Constitution of India, praying to issue a writ in the nature of declaration or any other writ, order or direction of similar nature declaring section 18-b of the Karnataka town and Counrty Planning Act, 1961 inserted vide act no.25 of 2020 unconstitutional and contrary to section 14B of Karnataka town and country planning act and etc.

This writ petition is filed under articles 226 and 227 of the Constitution of India, praying to quash the notification no.udd 78 mnj 2024 (e), dated 21.02.2025 vide annexure-a, issued by the government of Karnataka (respondent no.02), as being arbitrary, unconstitutional, and ultra vires the Karnataka town and country planning act, 1961, and the constitution of India and etc.)

Cav Order

1. Certain lands belonging to the petitioners in and around Bengaluru have been acquired by the State authorities for public purpose. As compensation for the said acquisition, the petitioners opted for Transferable Development Rights (TDR) instead of monetary compensation and the same has been granted to them. Thereafter, an amendment is brought to the provisions of the Karnataka Town and Country Planning Act, 1961 (for short hereinafter referred to as ‘the Act’) by way of introducing Section 18B, by which, the State has introduced a concept of Premium Floor Area Ratio (FAR). Thereafter, the relevant Rules have been amended and also certain notifications have been issued to give effect to the concept of premium FAR. Aggrieved by the same, the present writ petitions are filed.

2. The prayers in W.P.No.11201/2025 are as follows:

                  "a. Issue a writ in the nature of declaration or any other writ, order, or direction of similar nature declaring Section18-B of the Karnataka Town and Country Planning Act, 1961 inserted vide Act No. 25 of 2020 unconstitutional and contrary to Section 14B of Karnataka Town and Country Planning Act;

                  b.       Issue a writ of Certiorari or any other writ, order, direction of similar nature quashing the Notification bearing number UDD 78 MNJ 2024 (E) dated 2.4.2025 issued by Respondent No.2 produced at Annexure-A;

                  c.       Issue a writ of Certiorari or any other writ, order, direction of similar nature quashing Rule 37-E of the Karnataka Planning Authority Rules 1965;

                  d.       Pass such other orders that this Hon'ble Court may deem fit in the facts and circumstances of the present case, in the interest of justice."

3.     The prayers in W.P.No.6347/2025 are as follows:

                  "1. Issue a writ of certiorari or any other appropriate writ, order, or direction quashing Notification No. UDD 78 MNJ 2024 (E), dated 21.02.2025 vide ANNEXURE A, issued by the Government of Karnataka (Respondent no 02), as being arbitrary, unconstitutional, and ultra vires the Karnataka Town and Country Planning Act, 1961, and the Constitution of India.

                  1(A).   Issue a writ of certiorari or any other appropriate writ, order, or direction quashing Notification No. UDD 78 MNJ 2024 (E), dated 02.04.2025 vide (ANNEXURE F), issued by the Government of Karnataka (Respondent no 02), as being arbitrary, unconstitutional, and ultra vires the Karnataka Town and Country Planning Act, 1961, and the Constitution of India.

                  1(B).   Issue a writ, order, or direction of similar nature declaring Section 18-B of the Karnataka Town and Country Planning Act, 1961, inserted by Act No. 25 of 2020, as unconstitutional, manifestly arbitrary, and contrary to the scheme and intent of Section 14-B of the Karnataka Town and Country Planning Act, 1961.

                  1(C).   Issue a writ, order, or direction of similar nature quashing Rule 37-E of the Karnataka Planning Authority Rules, 1965, as being ultra vires the parent Act, unconstitutional, and contrary to the statutory framework.

                  2. Declare that the introduction of Premium FAR through the impugned notification is contrary to  established  urban  planning  norms  and violates the principles of equitable development, public safety, and infrastructure adequacy.

                  3. Issue a writ of Mandamus or any other appropriate writ, order, or direction by directing the Respondents to duly consider and address the representations and objections submitted by the petitioners vide ANNEXURE D.

                  4. Issue a writ of mandamus or any other appropriate writ, order, or direction directing the respondents to grant the pending Transferable Development Rights (TDR) certificates to landowners whose land has been acquired or, in the alternative, compensate them in accordance with the land Acquisition Act, ensuring just and fair compensation for their surrendered land.

                  5. Issue a writ of mandamus or any other appropriate writ, order, or direction, directing the Respondents to revalidate and operationalize the TDR certificates, including Development Rights Certificates (DRCs) and Certificates for Additional Rights Transferable Area (CARTA).

                  6. Pass such other and further orders as this Hon'ble Court may deem fit and proper, in the interest of justice and equity."

                  4. Section 14-B of the Act reads as under:

                  "14-B. Benefit of development rights.-(1) In a Local Planning Area if any Public Authority requires any 'Area' for the public purpose, it shall notify the same in such manner as may be prescribed and the owner of such 'Area' hands over possession of such 'Area' free from all encumbrances to such Public Authority in lieu of any compensation, under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (Central Act 30 of 2013) or any other law, he shall, notwithstanding anything contained in this Act or regulations, be entitled to be granted Development Rights (DR) under this section subject to conditions specified below. The Planning Authority shall issue Development Rights to such persons not more than the extent specified in table below, subject to such terms and conditions as may be prescribed.

                  (2)      The provisions of this section shall be applicable to the Local Planning Areas having City corporation and may be extended to other Local Planning areas as and when required by the State Government by notification from time to time.

                  (3)      No Development Rights shall be granted under this section unless the Public Authority deposits the amount with Planning Authority equal to the market value of the area required:

                  Provided that the Local Authority and Planning Authority are exempted from such deposition.

                  (4)      The Public Authority intending to obtain Development Rights in favour of owners shall apply to the Planning Authority enclosing the list of land owners who have surrendered the area for the public purpose as per the provisions in sub-section (1) after verifying title over such property and ensuring that no other person has any claim over such property. It shall also specify the details of entire land or building so surrendered along with payment of 'Deposition Amount' as per the market value, to the Planning Authority.

                  (5)      The Planning Authority before issuing Development Rights shall verify and notify the details of Area surrendered in the newspaper calling objections and suggestions, if any, for the purpose of Development Rights and the Development Rights intended to be issued, after satisfying itself beyond doubt that the persons claiming Development Rights is entitled for the same.

                  (6)      If the owner does not agree to surrender his 'Area" required by a Public Authority for any public purpose, for the Development Rights and demands for monetary compensation, then the Public Authority may acquire such 'Area' by providing compensation as per the provisions of the Right to Fair Compensation and Transparency in Land  Acquisition,  Rehabilitation  and  Resettlement Act, 2013 (Central Act 30 of 2013) or any other law prevailing.

                  (7)      Any 'Area owned by Public Authority required for public purpose by a Local Authority shall also be eligible to obtain Development Right if such 'Area is surrendered to the Local Authority in lieu of any compensation under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (Central Act 30 of 2013).

                  (8)      The Authority competent to approve Building plan shall not approve utilization of the Development Right unless an entry to that effect is made in the Development Rights Certificate and in the register/database maintained by the Planning Authority as prescribed.

                  (9)      The Planning Authority after considering objections or suggestions received under sub- section (5) shall verify the details for sanction of Development Rights and if found eligible issue it in the form of Development Right Certificate (DRC) under intimation to the public Authority to the owner specifying the extent of Notional Land as Development Rights admissible, subject to such terms and conditions as may be prescribed or reject it, quoting the reasons thereof.

                  Provided that no such application shall be rejected without giving opportunity of hearing to the public Authority and the owner of such land.

                  (10)    The Development Rights shall be calculated based on the land area or building area surrendered by the owner to any Public Authority free from all encumbrances and without claiming any compensation. The Land or building area so surrendered shall be converted into 'Notional Land' to extent specified in the Table below based on the value of the land determined on the basis of market value notified by the State Government under the Karnataka Stamp Act, 1957.

                  (11)    The Deposition amount or fee amount received by the Planning Authority under sub- section (3) or sub-section (27) shall be kept in a separate account called Transferable Development Rights Fund of the Planning Authority and shall be granted and utilized in the concerned Local Planning Area by the concerned Local Authority or Planning Authority in the prescribed manner.

                  (12)    The Development Rights so issued shall be utilized within the same Local Planning Area to which it is issued.

                  (13)    The Development Rights may be utilized within the same plot or in any other Area in the same Local Planning Area by the owner or the owner of such Development Rights may transfer the Development Rights to somebody else who can use that Development Rights on any other Area within the Local Planning Area, as Transferable Development Rights.

                  (14)    The utilization of Development Rights at the receiving plot shall be subject to limitations, as may be prescribed.

                  (15)    Whenever the owner sells the Development Rights, it shall be registered in the Planning Authority after due entry in the register/database and on the Development Rights Certificate.

                  (16)    No transfer or utilization of the Development Right shall be valid unless it is registered by the Planning Authority.

                  (17)    The Planning Authority shall maintain a register/database and shall make entry of issue, transfer or utilization of Development Rights granted under this section in such manner as may be prescribed.

                  (18)    Issue, transfer or utilization of the Development Rights may be done through electronic form and through internet in such manner as may be prescribed.

                  (19)    The State Government shall establish a State level Development rights monitoring authority consisting of such number of members as may be prescribed to keep track of all transactions of Development Rights. It shall also have power to inspect, verify the records of concerned Planning Authority pertaining to these transactions. It shall also have power to prosecute persons responsible for illegal or fraudulent transactions in contravention of the provisions of this section.

                  (20)    No person shall be eligible for the Development Rights for the surrender of the areas earmarked for road, parks or common open spaces and Civic Amenity sites to the Planning Authority or Local Authority while obtaining permission for formation of layouts or development any land under section 15 or 17.

                  (21)    The Planning Authority shall periodically publish total number of Development Rights issued, transferred and the balance remaining in each Local Planning Area and the name of the holder in such manner as may be prescribed.

                  (22)    Any person aggrieved by any order of the Planning Authority may appeal to such Appellate Authority, in such manner, as may be prescribed. The Appellate Authority may dispose the application with such direction as it deems fit. The decision of the Appellate Authority shall be final.

                  (23)    Any person who fraudulently create any Development Rights Certificate or fraudulently transfers Development Rights shall on conviction be liable for an imprisonment for not less than one year which may be extended to three years and to a fine which may extend to double the value of amount cheated by him.

                  (24)    The Member Secretary of the Planning Authority, shall be responsible to file complaint before the Court regarding the offences committed under this section.

                  (25)    In case of any dispute arising over the ownership of the 'Area' surrendered, where the Development Rights Certificate issued for such 'Area' is already transferred and utilized by any person other than the person who has surrendered the 'Area', such claims shall be restricted only to the extent of eligibility of compensation from the person who has surrendered the 'Area' for Development Right. The Public Authority which verified the claims shall also be responsible for the wrong recommendation for issue of Development Right. It shall make good the loss occurred by it.

                  (26)    All Development Rights issued before the commencement of the Karnataka Town and Country Planning (Amendment) Act, 2015 shall also be entered in the register/database maintained under this section in the same manner specified herein.

                  (27)    Necessary fees as prescribed shall be collected by the Planning Authority for registering any transaction of issue, transfer or utilization of Development Rights Certificate.

                  (28)    Every Transaction pertaining to issue, utilization or transfer of Development Rights and the Transferable Development Rights Fund of the Planning Authority created under sub-section (11) shall be audited every year by such officer as may be prescribed. The audit report along with compliance shall be sent to the Government by the concerned planning authority and the Government shall place the same before both the houses of the State Legislature.





                  Note.- The Development Rights in the form of 'Notional Land' shall be multiplied by the permissible Floor Area Ratio of the plot where Development Rights or transferable Development Rights is proposed to be utilized, to derive the additional Floor Area eligible for that plot due to utilization of Development Rights or Transferable Development Rights.

                  Explanation.- for the purpose of this section,-

                  (a) "Area" means land/plot or land and building/portion of building thereon;

                  (b)      "Deposition Amount" means the amount to be remitted by any Public Authority intending to acquire the area falling within the jurisdiction of the Local Planning Area. This amount shall be equal to the market value of the area to be acquired;

                  (c) "Development Rights (DR)" means the right given for development of land within the Local Planning Area in the form of "Notional Land" to an owner who surrenders the area of land or building required for public purpose without claiming any compensation.

                  (d) "Development Right Certificate (DRC)" means the certificate of Development Rights issued to owner;

                  (e)      "EWS/LIG" means such class of person as may be notified by the State Government from time to time;

                  (f)      "Floor Area" means the floor area defined in the respective Zonal Regulations;

                  (g) "Market value" means the value determined as per the guidance value of land in accordance with a Section 45B of the Karnataka Stamp Act, 1957;

                  (h) "Notional Land" means the Development Rights in the form of theoretical land area and not in the form of real/physical land area, in lieu of compensation;

                  (i) "Public Authority" means the Planning Authority, Local Authority or an authority or a body owned and controlled by the State Government, Central Government or by both State and Central Government jointly having Authority by laws to acquire, hold and dispose of property together;

                  (j) "Public purpose" means and includes for the purposes of.-

                  (i) Any road widening/any road formation as proposed in Master Plan or as proposed by the Local Authority;

                  (ii) Any Infrastructure Projects approved by the Government (Transportation, Water Supply, Sewage, Electricity, etc.,..)

                  (iii) Providing for parking, parks, playgrounds and open spaces or any other public places proposed in the master plan or proposed by Local Authority except cases under Section 15 and 17;

                  (iv) Providing EWS/LIG/affordable housing; and

                  (v) Any other public purpose notified by the Government from time to time."

                  (k) "Transferable Development Rights" (TDR) means the Development Right given in the form of 'Notional Land' to an owner, which can be sold or disposed or utilised elsewhere in the Local Planning Area. The DR of the 'Area' surrendered in the form of 'Notional Land', shall be permitted as TDR only after factorising the Market Value of the Originating Plot and the Receiving Plot, as specified in the Terms and Conditions."

5. Further, the Karnataka Town and Country Planning (Benefit of Development Rights) Rules, 2016 is formed for the purpose of giving effect to the TDR conferred on private persons.

6. The effect of introduction of concept of TDR is that, when the land of a person is acquired, instead of monetary compensation, he can request for allotment of TDR, by which, he can put up additional construction on the notified area or can sell the same in favour of third parties for consideration and they in turn can utilize the TDR for putting up additional construction in a notified area over and above what is permitted by the existing FAR. By introduction of Section 18B by way of an amendment, the State has permitted a person to pay an amount to the State and take permission for putting up additional construction on a land over and above the permitted FAR.

7. Section 18B of the Act and the relevant provisions that are challenged in the present writ petitions are as follows:

                  "18-B. Levy of premium charges for grant of Premium Floor Area Ratio.-(1) The Authority may grant permission for premium floor area ratio in the areas identified for the purpose in the Zonal regulations of the master plan.

                  (2)      Where an application is made for grant of permission for utilisation of premium floor area ratio for the development of a building under Section 15, the Authority may levy premium charges, at such rate, not less than fifty per cent of the estimated increase in value of land and building as may be prescribed by the Government from time to time, for grant of premium floor area ratio, not exceeding the limits as specified in the zonal regulations of the master plan.

                  Explanation. For the purpose of this section, "premium floor area ratio" means additional floor area ratio permitted over and above the ordinary permissible floor area ratio."

                  x x x x x

                  "GOVERNMENT OF KARNATAKA

                  No.UDD78MNJ2024(E)         Karnataka Government Secretariat Vikasa Soudha, Bengaluru, Dated: 02.04.2025

                  NOTIFICATION-I

                  Whereas the draft to amend the Zonal Regulations of Revised Master Plan-2015 of the Local Planning Area of Bengaluru, in exercise of the powers conferred under Section 13-E of Karnataka Town and Country Planning Act, 1961, which the Government of Karnataka proposes to make was published in Notification-1 No. UDD 78 MNJ 2024 (E). dated: 04.01.2025 in part-IVA of the Karnataka special Gazette dated: 04.01.2025 inviting objections and suggestions from all persons likely to be affected thereby within thirty days from the date of its publication in Official Gazette.

                  And whereas the said Gazette was available to the public on 4th January, 2025 and whereas the objections received have been considered by the State Government.

                  And whereas in exercise of the powers conferred by Section 13E of the Karnataka Town and Country Planning Act, 1961, (Karnataka Act 11 of 1963), the Government of Karnataka published the final regulations Notification-1 No. UDD 78 MNJ 2024 (E), dated:21.02.2025 in Part IVA of the Karnataka Gazette Extraordinary No.117, dated: 25.02.2025.

                  And whereas the provisions of the said Notification since not operated by the concerned authorities and after taking into consideration the administrative convenience, the State Government has decided to withdraw Notification-I No. UDD 78 MNJ 2024 (E), dated: 21.02.2025 issued in this behalf with effect from 25.02.2025.

                  Now therefore, in exercise of powers conferred by the section 13E of the Karnataka Town and Country Planning Act, 1961, (Karnataka Act 11 of 1963), the Government of Karnataka hereby makes the following regulations with effect from 25.02.2025, namely:-

                  REGULATIONS

                  Insertion of Chapter 11: In the zonal regulations of the approved Revised Master Plan-2015 of the Local Planning Area of Bengaluru in force, after Chapter 10, the following chapter 11 shall be inserted namely:-

                  CHAPTER-11: PREMIUM F.A.R GRANTED BY LEVY OF PREMIUM CHARGES.

                  1. The Premium F.A.R by levy of premium charges is the additional FAR granted over and above the ordinarily permissible F.A.R, on the basis of levy of premium charges by the Authority who accords permission for development of building or land under section 15 of the Karnataka Town and Country Planning Act, 1961, and in the areas as specified under regulation 2 below.

                  2. The maximum additional FAR available for utilization for development of additional area in any property by purchase of Premium FAR shall be not more than the maximum extent given in the table below and only on such roads and areas as given in table below:

                  Provided that in order to utilize the full extent of the additional FAR, the Premium FAR shall be utilized along with the DRCs/TDRs issued under section 14B, as per table given below:





                  Entries in column (2), (3) and (4) are in multiples of permissible FAR.

                  NOTE 1: If Premium FAR is used for a property then as per above table the maximum permissible additional FAR shall be as per Col (2) and the said maximum additional F.A.R should be taken subject to maximum limit on Premium F.A.R as per Column (3) and anything more than that should be utilized from the D.R.C/T.D.R.

                  Note 2: The maximum additional FAR allowed for a given building site shall not be more than 60% of the regular FAR otherwise allowed free of cost. This could be availed either as combination of Premium FAR and TDR/ DRC as given in Table above or purely through purchase of the DRC/TDR.

                  3. The Premium FAR shall be granted by the Bruhat Bengaluru Mahanagara Palike within its jurisdiction: Provided that, for the areas beyond BBMP jurisdiction the concerned Local Planning Authority shall be the competent authority to grant the Premium FAR.

                  4.       The Premium F.A.R granted by levy of premium charges, not exceeding limits as specified in Regulation 2, may be allowed at the building site abutting road width of more than 9m.

                  5.       Premium FAR charges,-

                  (i)       The guidance value of the developed site on the same plot and put to same use as intended to be built using Premium FAR, shall be taken as the base value.

                  (ii)      Premium FAR charges shall be 50% of the guidance value of the additional notional sital area:

                  Provided that Premium FAR charges per square meter of the additional area built shall not be less than 28% of the rate of the Guidance Value per square meter of building site on which building is proposed.





                  6. The Guidance Value at building site shall be latest developed site rates as on the date of issue of the Premium F.A.R granted by levy of premium charges and for the use that the property is put to or sought to  be  put  to  and  as  published  in  the  Gazette Notification by the Government of Karnataka under provisions of the Karnataka Stamp Act, 1957 (Karnataka Act No 34 of 1957).

                  7.       The Guidance Value of land at building site shall not be taken from the Guidance Value of Agricultural or Converted Undeveloped land.

                  8.       In case of 2 or more abutting roads at building site, the highest Guidance Value provided to a road abutting the building site shall be considered for levying premium charges for grant of the Premium F.A.R.

                  9.       The Premium FAR charges paid for additional built- up area shall be reflected in the receipt issued for the payment of Building Plan approval under section 15 of the Karnataka Town and Country Planning Act 1961 (Karnataka Act No.11 of 1963). It shall also be clearly mentioned the extent of built up area and the type of use which has been purchased and added through Premium FAR in the sanctioned Building Plan and the Building License issued. The issued Premium FAR stands consumed the moment the building plan is approved under the said section in which the additional built-up area is given based on the Premium FAR.

                  10.     The Premium F.A.R shall not be transferrable and must be utilised only at the building site for which it is issued.

                  11.     The Premium F.A.R. granted by levy of premium charges if left unutilized, either partly or fully, in actual construction by a Developer or a Purchaser due to any reason whatsoever shall not be transferrable to anyone else nor reimbursed by the authority which issued it. It is reiterated that the said Premium F.A.R granted stands consumed the moment the Building Plan is approved under section 15 of the Karnataka Town and Country Planning Act 1961 (Karnataka Act No 11 of 1963) thereby utilizing the additional FAR granted through the Premium FAR.

                  12.     The Premium F.A.R. granted after levy of premium charges and once issued along with the approval of a building plan shall remain valid until completion of construction of the building as per the approved Building Plan. In case the Building Plan Licence expires and the Developer/ Applicant has not completed the construction and not obtained the Occupancy Certificate then the renewal of the Building Plan may be done as per extant Rules and Guidelines. While renewing the Building Plan, the Premium FAR already issued for that building site and for the approved purpose shall remain valid and need not be purchased again.

                  13.     Developed Site Guidance Value for the land at building site based on location and type of use, as on the date of issue of the Premium F.A.R, as explained in regulation 5 under this chapter, shall be applicable for levying Premium charges for grant of Premium F.A.R. Any increase in the Guidance Value of the developed land at building site after the date of application for Building Plan and before the approval of the Building Plan shall be passed on to the Developer/Applicant and he shall be liable to pay the Premium FAR charges as applicable on the day of building plan approval.

                  14.     In case of subsequent modification of plan or change of land use leading to increase in area or increase in the rates applicable due to change in type of use, the difference of premium charges for grant of Premium FAR shall be levied and recovered from the Developer/Applicant at the time of issuance of modified plan at the rates applicable for Premium FAR for the increased area or due to change in type of use.

                  Illustration:

                  "A" had got Building Plan approval on 12.03.2025 for residential use which included 1,000 Sq m of built-up area approved by taking Premium FAR and subsequently on 12.12.2025 he seeks to construct additional buildings which requires 1,200 Sq m by purchase of Premium FAR and now wants to put 300 Sq m of built-up area to commercial use; then he shall pay as follows additionally while purchasing the Premium FAR at the Guidance Values applicable on 12.12.2025 for the following:

                  (i) for the increased 200 Sq m of built-up area at the rates of commercial use;

                  (ii) difference amount for 100 Sq m built-up area now sought to be put to Commercial Use by changing it from Residential Use.

                  15. Accounting for the premium FAR granted on the basis of levy of premium charges shall be maintained by the Authority which issued it.

                  16. The premium charges levied for the grant of Premium F.A.R shall be non-refundable in case of cancellation of Building Plan.

                  17. Setback relaxation for the utilisation of Premium F.A.R granted by levy of premium charges shall be same as what is applicable in the existing rules for utilisation of the D.R.C/T.D.R issued under section 14-B of the Karnataka Town and Country Planning Act 1961 (Karnataka Act No 11 of 1963).

                  18. The premium charges collected by grant of premium floor area ratio shall be deposited in a separate head of account and shall be vest solely with the Authority which issued it and the same shall be utilized only for the purposes of land acquisition and public infrastructure and the development of public infrastructure within the jurisdiction of the said Authority, and shall not be utilized, inter-alia, for repairs, maintenance and miscellaneous works at any time.

                  19. The transfer of funds from the corpus of premium charges levied for grant of Premium F.A.R for infrastructure development within the jurisdiction to any other separate Authority or SPV or Development Agency shall be as per order, either specific or a general policy, of the Government.

                  20. All appeals with respect to grant of Premium F.A.R by levy of premium charges by the authorized Authority shall lie with Additional Chief Secretary, Urban Development Department, Government of Karnataka, whose decision shall be final.

                  21.     The undervaluation of premium charges leviable for grant of the Premium F.A.R shall be amount to defalcation of public funds illegally from the Government Treasury and, accordingly, liable for action for relevant action for the applicable offences under the Bharathiya Nyaya Sanhita, 2023 and the Prevention of Corruption Act, 1988. In addition the public servants shall also be liable for disciplinary action.

                  By Order and in the name of the

                  Governor of Karnataka

                  (RAJESH S SULIKERI),

                  Under Secretary to Government

                  Urban Development Department.

                  (BDA & B'lore-1)

                  GOVERNMENT OF KARNATAKA

                  No.UDD78MNJ2024(E) Karnataka Government Secretariat

                  Vikasa Soudha,

                  Bengaluru, Dated: 02.04.2025

                  NOTIFICATION-II

                  Whereas the draft to amend the Zonal Regulations of approved Master Plan of the Bengaluru-Mysuru Infrastructure Corridor Area Planning Authority (BMICAPA), in exercise of the powers conferred under Section 13-E of Karnataka Town and Country Planning Act, 1961, which the Government of Karnataka proposes to make was published in Notification-II No. UDD 78 MNJ 2024 (E), dated: 04.01.2025 in part-IVA of the Karnataka special Gazette dated: 04.01.2025 inviting objections and suggestions from all persons likely to be affected thereby within thirty days from the date of its publication in Official Gazette.

                  And whereas the said Gazette was available to the public on 4th January, 2025 and whereas the objections received have been considered by the State Government.

                  And whereas in exercise of the powers conferred by section 13E of the Karnataka Town and Country Planning Act, 1961, (Karnataka Act 11 of 1963), the Government of Karnataka published the final regulations vide Notification-II No. UDD 78 MNJ 2024  (E),  dated:  21.02.2025  in  Part  IVA  of  the Karnataka Gazette Extraordinary No. 117, dated: 25.02.2025.

                  And whereas the provisions of the said Notification since not operated by the concerned authorities and after taking into consideration the administrative convenience, the State Government has decided withdraw Notification-II No. UDD 78 MNJ 2024 (E), dated: 21.02.2025 issued in this behalf with effect from 25.02.2025.

                  Now, therefore in exercise of powers conferred by the section 13E of the Karnataka Town and Country Planning Act, 1961, (Karnataka Act 11 of 1963), the Government of Karnataka hereby makes the following regulations with effect from 25.02.2025, namely:-

                  REGULATIONS

                  Insertion of Section-5: In the zonal regulations of the approved Master Plan of the Bengaluru-Mysuru Infrastructure Corridor Area Planning Authority (BMICAPA) in force, after section 4, the following section 5 shall be inserted, namely:-

                  "SECTION-5:  PREMIUM       F.A.R  GRANTED      BY LEVY OF PREMIUM CHARGES.

                  1. The Premium F.A.R by levy of premium charges is the additional F.A.R granted over and above the ordinarily permissible F.A.R, on the basis of levy of premium  charges  by  the  Authority  who  accords permission for development of building or land under section 15 of the Karnataka Town and Country Planning Act, 1961, and in the areas as specified under regulation 2 below.

                  2. The maximum additional FAR available for utilization for development of additional area in any property by purchase of Premium PAR shall be not more than the maximum extent given in the table below and only on such roads and areas as given in table below:

                  Provided that in order to utilize the full extent of the additional FAR, the Premium FAR shall be utilized along with the DRCs/TDRs issued under section 14B, as per table given below:





                      *  Entries in column (2), (3) and (4) are in multiples of permissible FAR.

                  NOTE 1: If Premium FAR is used for a property then as per above table the maximum permissible additional FAR shall be as per Col (2) and the said maximum additional F.A.R should be taken subject to maximum limit on Premium F.A.R as per Column (3) and anything more than that should be utilized from the D.R.C/T.D.R.

                  Note 2: The maximum additional FAR allowed for a given building site shall not be more than 60% of the regular FAR otherwise allowed free of cost. This could be availed either as combination of Premium FAR and TDR/ DRC as given in Table above or purely through purchase of the DRC/TDR.

                  3.       The Premium FAR shall be granted by the Bruhat Bengaluru Mahanagara Palike within its jurisdiction:

                  Provided that, for the areas beyond BBMP jurisdiction the concerned Local Planning Authority shall be the competent authority to grant the Premium FAR.

                  4. The Premium F.A.R granted by levy of premium charges, not exceeding limits as specified in regulation 2, may be allowed at the building site abutting road width of more than 9m.

                  5.       Premium FAR charges,-

                  (i)       The guidance value of the developed site on the same plot and put to same use as intended to be built using Premium FAR, shall be taken as the base value.

                  (ii)      Premium FAR charges shall be 50% of the guidance value of the additional notional sital area:

                  Provided that Premium FAR charges per square meter of the additional area built shall not be less than 28% of the rate of the Guidance Value per square meter of building site on which building is proposed.





                  6.       The Guidance Value at building site shall be latest developed site rates as on the date of issue of the Premium F.A.R granted by levy of premium  charges  and  for  the  use  that  the property is put to or sought to be put to and as published in the Gazette Notification by the Government of Karnataka under provisions of the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957).

                  7.       The Guidance Value of land at building site shall not be taken from the Guidance Value of Agricultural or Converted Undeveloped land.

                  8.       In case of 2 or more abutting roads at building site, the highest Guidance Value provided to a road abutting the building site shall be considered for levying premium charges for grant of the Premium F.A.R.

                  9. The Premium FAR charges paid for additional built-up area shall be reflected in the receipt issued for the payment of Building Plan approval under section 15 of the Karnataka Town and Country Planning Act 1961 (Karnataka Act 11 of 1963) It shall also be clearly mentioned the extent of built up area and the type of use which has been purchased and added through Premium FAR in the sanctioned Building Plan and the Building License issued. The issued Premium FAR stands consumed the moment the building plan is approved under the said section in which the additional built-up area is given based on the Premium FAR.                                   10.     The Premium F.A.R shall not be transferrable and must be utilised only at the building site for which it is issued.

                  11.     The Premium F.A.R. granted by levy of premium charges if left unutilized, either partly or fully, in actual construction by a Developer or a Purchaser due to any reason whatsoever shall not be transferrable to anyone else nor reimbursed by the authority which issued it. It is reiterated that the said Premium F.A.R granted stands consumed the moment the Building Plan is approved under section 15 of the Karnataka Town and Country Planning Act 1961 (Karnataka Act 11 of 1963), thereby utilizing the additional FAR granted through the Premium FAR.

                  12.     The Premium F.A.R. granted after levy of premium charges and once issued along with the approval of a building plan shall remain valid until completion of construction of the building as per the approved Building Plan. In case the Building Plan Licence expires and the Developer/ Applicant has not completed the construction and not obtained the Occupancy Certificate then the renewal of the Building Plan may be done as per extant Rules and Guidelines. While renewing the Building Plan, the Premium FAR already issued for that building site and for the approved purpose shall remain valid and need not be purchased again.

                  13.     Developed Site Guidance Value for the land at building site based on location and type of use, as on the date of issue of the Premium F.A.R, as explained in regulation 5 under this chapter, shall be applicable for levying Premium charges for grant of Premium F.A.R. Any increase in the Guidance Value of the developed land at building site after the date of application for Building Plan and before the approval of the Building Plan shall be passed on to the Developer/Applicant and he shall be liable to pay the Premium FAR charges as applicable on the day of building plan approval.

                  14.     In case of subsequent modification of plan or change of land use leading to increase in area or increase in the rates applicable due to change in type of use, the difference of premium charges for grant of Premium F.A.R shall be levied and recovered from the Developer/Applicant at the time of issuance of modified plan at the rates applicable for Premium FAR for the increased area or due to change in type of use.

                  Illustration:

                  "A" had got Building Plan approval on 12.03.2025 for residential use which included 1,000 Sq m of built-up area approved by taking Premium FAR and subsequently on 12.12.2025 he seeks to construct additional buildings which requires 1,200 Sq m by purchase of Premium FAR and now wants to put 300 Sq m of built-up area to Premium FAR at the Guidance Values applicable on 12.12.2025 for the following:

                  (i) for the increased 200 Sq m of built-up area at the rates of commercial use;

                  (ii) difference amount for 100 Sq m built-up area now sought to be put to Commercial Use by changing it from Residential Use.

                  15. Accounting for the premium FAR granted on the basis of levy of premium charges shall be maintained by the Authority which issued it.

                  16. The premium charges levied for the grant of Premium FAR shall be non-refundable in case of cancellation of Building Plan.

                  17. Setback relaxation for the utilisation of Premium F.A.R granted by levy of premium charges shall be same as what is applicable in the existing rules for utilisation of the D.R.C/T.D.R issued under section 14-B of the Karnataka Town and Country Planning Act 1961 (Karnataka Act 11 of 1963).

                  18. The premium charges collected by grant of premium floor area ratio shall be deposited in a separate head of account and shall vest solely with the Authority which issued it and the same shall be utilized only for the purposes of land acquisition and public infrastructure and the development of public infrastructure within the jurisdiction of the said Authority; and shall not be utilized, inter-alia, for repairs, maintenance and miscellaneous works at any time.

                  19. The transfer of funds from the corpus of premium charges levied for grant of Premium F.A.R for infrastructure development within the jurisdiction to any other separate Authority or SPV or Development Agency shall be as per order, either specific or a general policy, of the Government.

                  20. All appeals with respect to grant of Premium F.A.R by levy of premium charges by the authorized Authority shall lie with Additional Chief Secretary, Urban Development Department, Government of Karnataka, whose decision shall be final.

                  21. The undervaluation of premium charges leviable for grant of the Premium F.A.R shall be amount to defalcation of public funds illegally from the Government Treasury and, accordingly, liable for action for relevant action for the applicable offences under the Bharathiya Nyaya Sanhita, 2023 and the Prevention of Corruption Act, 1988. In addition the public servants shall also be liable for disciplinary action.

                  By Order and in the name of the Governor of Karnataka

                  (RAJESH S SULIKERI)

                  Under Secretary to Government

                  Urban Development Department,

                  (BDA & B'lore-1).

                  GOVERNMENT OF KARNATAKA

                  No.UDD78MNJ2024(E)                         Karnataka Government Secretariat

                  Vikasa Soudha, Bengaluru,

                  Dated: 02.04.2025.

                  NOTIFICATION-III

                  Whereas the draft to amend the Zonal Regulations of approved Master Plan of the Local Planning Area of Anekal, Kanakapura, Ramanagara, Channapatna, Magadi Nelamangala, Bengaluru International Airport Area and Hosakote, in exercise of  the  powers  conferred  under  Section  13-E  of Karnataka Town and Country Planning Act, 1961, which the Government of Karnataka proposes to make was published in Notification-III No. UDD 78 MNJ 2024 (E), dated: 04.01.2025 in part-IVA of the Karnataka special Gazette dated: 04.01.2025 inviting objections and suggestions from all persons likely to be affected thereby within thirty days from the date of its publication in Official Gazette.

                  And whereas the said Gazette was available to the public on 4 January, 2025 and whereas the objections received have been considered by the State Government.

                  And whereas in exercise of the powers conferred by section 13E of the Karnataka Town and Country Planning Act, 1961, (Karnataka Act 11 of 1963), the Government of Karnataka published the final regulations vide Notification-III No. UDD 78 MNJ 2024 (Ε), dated: 21.02.2025 in Part IVA of the Karnataka Gazette Extraordinary No. 117, dated: 25.02.2025.

                  And whereas the provisions of the said Notification since not operated by the concerned authorities and after taking into consideration the administrative convenience, the State Government has decided to withdraw Notification-III No. UDD 78 MNJ 2024 (E), dated: 21.02.2025 issued in this behalf with effect from 25.02.2025.

                  Now, therefore in exercise of the powers conferred by section 13E of the Karnataka Town and Country Planning Act, 1961 (Karnataka Act 11 of 1963), the Government of Karnataka hereby makes the following regulations with effect from 25.02.2025, namely:-

                  REGULATIONS

                  In the zonal regulations of the approved Master Plan in force of the local planning area of Anekal, Kanakapura, Ramanagara, Channapatna, Magadi, Nelamangala, Bengaluru International Airport Area and Hosakote, the following new chapter shall be inserted, namely:-

                  CHAPTER: PREMIUM F.A.R GRANTED BY LEVY OF PREMIUM CHARGES.

                  1. The Premium F.A.R by levy of premium charges is the additional F.A.R granted over and above the ordinarily permissible F.A.R, on the basis of levy of premium charges by the Authority who accords permission for development of building or land under section 15 of the Karnataka Town and Country Planning Act, 1961 (Karnataka Act No.11 of 1963) and in the areas as specified under regulation 2 below.

                  2. The maximum additional FAR available for utilization for development of additional area in any property by purchase of Premium FAR shall be not more than the maximum extent given in the table below and only on such roads and areas as given in table below:

                  Provided that in order to utilize the full extent of the additional FAR, the Premium FAR shall be utilized along with the DRCs/TDRs issued under section 14B, as per table given below:



                  NOTE 1: If Premium FAR is used for a property then as per above table the maximum permissible additional FAR shall be as per Col (2) and the said maximum additional F.A.R should be taken subject to maximum limit on Premium F.A.R as per Column (3) and anything more than that should be utilized from the D.R.C/T.D.R.

                  Note 2: The maximum additional FAR allowed for a given building site shall not be more than 60% of the regular FAR otherwise allowed free of cost. This could be availed either as combination of Premium FAR and TDR/ DRC as given in Table above or purely through purchase of the DRC/TDR.

                  3. The concerned Local Planning Authority shall be the competent authority to grant the Premium FAR.

                  4. The Premium F.A.R granted by levy of premium charges, not exceeding limits as specified in regulation 2, may be allowed at the building site abutting road width of more than 9m.

                  5. Premium FAR charges,-

                  (i) The guidance value of the developed site on the same plot and put to same use as intended to be built using Premium FAR, shall be taken as the base value; and

                  (ii) Premium FAR charges shall be 50% of the guidance value of the additional notional sital area:

                  Provided that Premium FAR charges per square meter of the additional area built shall not be less than 28% of the rate of the Guidance Value per square meter of building site on which building is proposed.

                  I

                 

                  6. The Guidance Value at building site shall be latest developed site rates as on the date of issue of the Premium F.A.R granted by levy of premium charges and for the use that the property is put to or sought to be put to and as published in the Gazette Notification by the Government of Karnataka under provisions of the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957).

                  7.       The Guidance Value of land at building site shall not be taken from the Guidance Value of Agricultural or Converted Undeveloped land.

                  8.       In case of 2 or more abutting roads at building site, the highest Guidance Value provided to a road abutting the building site shall be considered for levying premium charges for grant of the Premium F.A.R.

                  9.       The Premium FAR charges paid for additional built- up area shall be reflected in the receipt issued for the payment of Building Plan approval under section 15 of the Karnataka Town and Country Planning Act 1961 (Karnataka Act 11 of 1963). It shall also be clearly mentioned the extent of built up area and the type of use which has been purchased and added through Premium FAR in the sanctioned Building Plan and the Building License issued. The issued Premium FAR stands consumed the moment the building plan is approved under the said section in which the additional built-up area is given based on the Premium FAR.

                  10.     The Premium F.A.R shall not be transferable and must be utilised only at the building site for which it is issued.

                  11.     The Premium F.A.R. granted by levy of premium charges if left unutilized, either partly or fully, in actual construction by a Developer or a Purchaser due to any reason whatsoever shall not be transferable to anyone else nor reimbursed by the authority which issued it. It is reiterated that the said Premium F.A.R granted stands consumed the moment the Building Plan is approved under section 15 of the Karnataka Town and Country Planning Act 1961 (Karnataka Act 11 of 1963), thereby utilizing the additional FAR granted through the Premium FAR.

                  12.     The Premium F.A.R. granted after levy of premium charges and once issued along with the approval of a building plan shall remain valid until completion of construction of the building as per the approved Building Plan. In case the Building Plan Licence expires and the Developer/ Applicant has not completed the construction and not obtained the Occupancy Certificate then the renewal of the Building Plan may be done as per extant Rules and Guidelines. While renewing the Building Plan, the Premium FAR already issued for that building site and for the approved purpose shall remain valid and need not be purchased again.

                  13.     Developed Site Guidance Value for the land at building site based on location and type of use, as on the date of issue of the Premium F.A.R, as explained in regulation 5 under this chapter, shall be applicable for levying Premium charges for grant of Premium F.A.R. Any increase in the Guidance Value of the developed land at building site after the date of application for Building Plan and before the approval of the Building Plan shall be passed on to the Developer/Applicant and he shall be liable to pay the Premium FAR charges as applicable on the day of building plan approval.

                  14. In case of subsequent modification of plan or change of land use leading to increase in area or increase in the rates applicable due to change in type of use, the difference of premium charges for grant  of  Premium  F.A.R  shall  be  levied  and recovered from the Developer/Applicant at the time of issuance of modified plan at the rates applicable for Premium FAR for the increased area or due to change in type of use.

                  Illustration:

                  "A" had got Building Plan approval on 12.03.2025 for residential use which included 1,000 Sq m of built-up area approved by taking Premium FAR and subsequently on 12.12.2025 he seeks to construct additional buildings which requires 1,200 Sq m by purchase of Premium FAR and now wants to put 300 Sq m of built-up area to commercial use; then he shall pay as follows additionally while purchasing the Premium FAR at the Guidance Values applicable on 12.12.2025 for the following:

                  (i) for the increased 200 Sq m of built-up area at the rates of commercial use;

                  (ii) difference amount for 100 Sq m built-up area now sought to be put to Commercial Use by changing it from Residential Use.

                  15.     Accounting for the premium FAR granted on the basis of levy of premium charges shall be maintained by the Authority which issued it.

                  16. The premium charges levied for the grant of Premium F.A.R shall be non-refundable in case of cancellation of Building Plan.

                  17. Setback relaxation for the utilisation of Premium F.A.R granted by levy of premium charges shall be same as what is applicable in the existing rules for utilisation of the D.R.C/T.D.R issued under section 14-B of the Karnataka Town and Country Planning Act 1961 (Karnataka Act 11 of 1963).

                  18. The premium charges collected by grant of premium floor area ratio shall be deposited in a separate head of account and shall vest solely with the Authority which issued it and the same shall be utilized only for the purposes of land acquisition and public infrastructure and the development of public infrastructure within the jurisdiction of the said Authority; and shall not be utilized, inter-alia, for repairs, maintenance and miscellaneous works at any time.

                  19. The transfer of funds from the corpus of premium charges levied for grant of Premium F.A.R for infrastructure development within the jurisdiction to any other separate Authority or SPV or Development Agency shall be as per order, either specific or a general policy, of the Government.

                  20. All  appeals  with  respect  to  grant of  Premium F.A.R by levy of premium charges by the authorized Authority shall lie with Additional Chief Secretary,   Urban   Development   Department, Government of Karnataka, whose decision shall be final.

                  21. The undervaluation of premium charges leviable for grant of the Premium F.A.R shall be amount to defalcation of public funds illegally from the Government Treasury and, accordingly, liable for action for relevant action for the applicable offences under the Bharathiya Nyaya Sanhita, 2023 and the Prevention of Corruption Act, 1988. In addition the public servants shall also be liable for disciplinary action.

                  By Order and in the name of the

                  Governor of Karnataka

                  (RAJESH S SULIKERI),

                  Under Secretary to Government

                  Urban Development Department.

                  (BDA & B'lore-1)"

                  x x x x x

                  "GOVERNMENT OF KARNATAKA

                  No.UDD78MNJ2024(E)  Karnataka Government Secretariat

                  Vikasa Soudha, Bengaluru

                  Dated:21.02.2025

                  NOTIFICATION-1

                  Whereas the draft to amend the Zonal Regulations of Revised Master Plan-2015 of the Local Planning Area of Bengaluru, in exercise of the powers conferred under Section 13-E of Karnataka Town and Country Planning Act, 1961, which the Government of Karnataka proposes to make was published in Notification no. UDD 78 MNJ 2024 (E), dated: 04.01.2025 in part-IVA of the Karnataka special Gazette dated: 04.01.2025 inviting objections and suggestions from all persons likely to be affected thereby within thirty days from the date of its publication in Official Gazette.

                  And whereas the said Gazette was available to the public on 4th January, 2025 and whereas the objections received have been considered by the State Government.

                  Now therefore, in exercise of the powers conferred by Section 13E of the Karnataka Town and Country Planning Act, 1961, (Karnataka Act 11 of 1963), the Government of Karnataka hereby makes the following regulations, namely:-

                  REGULATIONS

                  Insertion of Chapter 11: In the zonal regulations of the approved Revised Master Plan- 2015 of the Local Planning Area of Bengaluru in force, after Chapter 10, the following chapter 11 shall be inserted namely;

                  CHAPTER – 11: PREMIUM F.A.R GRANTED BY LEVY OF PREMIUM CHARGES.

                  1. The Premium F.A.R by levy of premium charges is the additional F.A.R granted over and above the ordinarily permissible F.A.R, on the basis of levy of premium  charges  by  the  Authority  who  accords permission for development of building or land under section 15 of the Karnataka Town & Country Planning Act, 1961, and in the areas as specified under Clause 2 below.

                  2. The maximum additional FAR available for utilization for development of additional area in any property by purchase of Premium FAR shall be not more than the maximum extent given in the table below and only on such roads and areas as given in table below. Provided further that in order to utilize the full extent of the additional FAR, the Premium FAR shall be utilized along with the DRCs/TDRs issued under section 14B, as per table given below:

                 

                  Entries in column (2), (3) and (4) are in multiples of permissible FAR.

                  NOTE: If Premium FAR is used for a property then as per above table the  maximum permissible additional FAR shall be as per Col (2) and the said maximum additional F.A.R should be taken subject to maximum limit on Premium F.A.R as per Column (3) and anything more than that should be utilized from the D.R.C/T.D.R.

                  3.       The format for application and utilisation of the Premium F.A.R granted by levy of premium charges shall be in the prescribed format.

                  4.       The Premium F.A.R granted by levy of premium charges, not exceeding limits as specified in point 2, may be allowed at the building site abutting road width of more than 9m.

                  5.       Premium FAR charges -

                  i.        The guidance value of the developed site on the same plot & put to same use as intended to be built using Premium FAR, shall be taken as the base value.

                  ii. Premium FAR charges shall be 50% of the guidance value of the additional notional sital area. Provided that Premium FAR charges per 3 square meter of the additional area built shall not be less than 28% of the rate of the Guidance Value per square meter of building site on which building is proposed.

                  

                 

                  6. The Guidance Value at building site shall be latest developed site rates as on the date of issue of Utilisation Certificate for the Premium F.A.R granted by levy of premium charges and for the use that the property is put to or sought to be put to and as published in the Gazette Notification by the Government of Karnataka under the Karnataka Stamp Act 1957.

                  7. The Guidance Value of land at building site shall not be taken from the Guidance Value of Agricultural or Converted Undeveloped land.

                  8. The cost of construction prescribed in the Notification under section 45B of the Karnataka Stamp Act 1957 shall be used for the purpose of calculating the value of the additional building being constructed through Premium FAR.

                  9. In case of 2 or more abutting roads at building site, the highest Guidance Value provided to a road abutting the building site shall be considered for levying premium charges for grant of the Premium F.A.R.

                  10. The Certificate of the Premium F.A.R granted by levy of premium charges shall be issued subject to free of cost relinquishment of area reserved for public utility and Master Plan Roads overlapping at Building Site and other provisions of the Karnataka Town & Country Planning Act, 1961, to the Planning Authority or Urban Local Bodies who issues the Premium FAR Certificate. In case of any dispute regarding any of above, by the Developer, the Chief Executive Officer of the Planning Authority or Urban Local Body, which is issuing the Premium FAR, reserves the full right to not to allow any release of plan and certificate of Premium F.A.R grantable by levy of premium charges.

                  11.     Certificate for Premium F.A.R granted by levy of premium charges shall be surrendered to the authority sanctioning or approving the development plan under section 15 of the KTCP Act, 1961, before the release of plan sanction of the Building on which Premium F.A.R is loaded.

                  12.     Premium F.A.R shall not be transferrable and must be utilised only at the building site for which it is issued.

                  13.     Premium F.A.R granted by levy of premium charges if left unutilised with a Developer or a Purchaser due to any reason whatsoever shall not be transferred or reimbursed by the authority which issued it.

                  14.     Premium F.A.R granted after levy of premium charges may be renewed by the authority which issued it or is authorized to issue it, in case of expiry of license period after taking sanction of Plan, subject to payment of revised Premium F.A.R charges as may be applicable on the date of renewal.

                  15.     Developed Site Guidance Value for the land and Building Cost for the building at building site based on location and type of use, as on the date of issue of Certificate for Premium F.A.R shall be applicable for levying Premium charges for grant of Premium F.A.R. Any increase in the Guidance 5 Value of land or the building cost, at building site after the date of application of Building Plan and before the release of Certificate shall be passed on to the Developer/Applicant.

                  16.     In case of subsequent modification of plan or change of land use, the difference of premium charges for grant of Premium F.A.R shall be levied and recovered from the Developer/Applicant at the time of issuance of modified plan.

                  17.     Accounting for the Premium F.A.R granted on the basis of levy of premium charges shall be maintained by the Authority which issued it.

                  18.     Transfer of the Certificate of Premium F.A.R granted  by  levy  of  premium  charges  from  one site/property to another shall not be allowed for any reason whatsoever.

                  19.     The premium charges levied for the grant of Premium F.A.R shall be non-refundable in case of cancellation of Building Plan.

                  20.     Setback relaxation for the utilisation of Premium F.A.R granted by levy of premium charges shall be same as what is applicable in the existing rules for utilisation of the D.R.C/T.D.R.

                  21.     The premium charges collected by grant of premium floor area ratio shall be deposited in a separate head of account and shall vest solely with the Authority which issued it and the same shall be utilized only for the purposes of land acquisition and public infrastructure and the development of public infrastructure within the jurisdiction of the said Authority; and shall not be utilized, inter-alia, for repairs, maintenance and miscellaneous works at any time.

                  22.     The transfer of funds from the corpus of premium charges levied for grant of Premium F.A.R for infrastructure development within the jurisdiction to any other separate Authority or SPV or Development Agency shall be as per order, either specific or a general policy, of the Government.

                  23.     All appeals with respect to grant of Premium F.A.R by levy of premium charges by the authorized Authority shall lie with Additional Chief Secretary, Urban Development Department, Government of Karnataka, whose decision shall be final.

                  24. Undervaluation of premium charges leviable for grant of Certificate of Premium F.A.R shall be a cognizable offence similar to defalcation of public funds illegally from the Government Treasury and liable for action for Theft and Criminal Breach of Trust by Public Servants as punishable under 6 Prevention of Corruption Act and the Bharathiya Nyaya Samhita (BNS). If proved, an amount equal to double the amount of undervaluation shall be recovered from the public servants concerned who are jointly and severally liable without prejudice to any other criminal and departmental proceeding that may be undertaken.

                  By Order and in the name of the

                  Governor of Karnataka

                  (RAJESH S SULIKERI),

                  Under Secretary to Government (BDA & B’lore-1)

                  Urban Development Department.

                  GOVERNMENT OF KARNATAKA

                  No.UDD78MNJ2024(E)  Karnataka Government Secretariat

                  Vikasa Soudha,

                  Bengaluru Dated : 21.02.2025.

                  NOTIFICATION-II

                  Whereas the draft to amend the Zonal Regulations of approved Master Plan of the Bengaluru-Mysuru   Infrastructure   Corridor   Area Planning Authority (BMICAPA), in exercise of the powers conferred under Section 13-E of Karnataka Town and Country Planning Act, 1961, which the Government of Karnataka proposes to make was published in Notification no. UDD 78 MNJ 2024 (E), dated: 04.01.2025 in part-IVA of the Karnataka special Gazette dated: 04.01.2025 inviting objections and suggestions from all persons likely to be affected thereby within thirty days from the date of its publication in Official Gazette.

                  And whereas the said Gazette was available to the public on 4th January, 2025 and whereas the objections received have been considered by the State Government.

                  Now therefore, in exercise of the powers conferred by Section 13E of the Karnataka Town and Country Planning Act, 1961, (Karnataka Act 11 of 1963), the Government of Karnataka hereby makes the following regulations, namely:-

                  REGULATIONS

                  Insertion of Section 5: In the zonal regulations of the approved Master Plan of the Bengaluru-Mysuru Infrastructure Corridor Area Planning Authority (BMICAPA) in force, after section 4, the following section 5 shall be inserted namely;

                  SECTION – 5: PREMIUM F.A.R GRANTED BY LEVY OF PREMIUM CHARGES.

                  1. The Premium F.A.R by levy of premium charges is the additional F.A.R granted over and above the ordinarily permissible F.A.R, on the basis of levy of premium charges by the Authority who accords permission for development of building or land under section 15 of the Karnataka Town & Country Planning Act, 1961, and in the areas as specified under Clause 2 below.

                  2. The maximum additional F.A.R available for utilization for development of additional area in any property by purchase of Premium F.A.R shall be not more than the maximum extent given in the table below and only on such roads and areas as given in table below. Provided further that in order to utilize the full extent of the additional F.A.R, the Premium F.A.R shall be utilized along with the DRCs/TDRs issued under section 14B, as per table given below:

                 

                 

                  Entries in column (2), (3) and (4) are in multiples of permissible F.A.R.

                  NOTE: If Premium F.A.R is used for a property then as per above table the maximum permissible additional F.A.R shall be as per Col (2) and the said maximum additional F.A.R should be taken subject to maximum limit on Premium F.A.R as per column (3) and anything more than that should be utilized from the D.R.C/T.D.R.

                  3.       The format for application and utilisation of the Premium F.A.R granted by levy of premium charges shall be in the prescribed format.

                  4. The Premium F.A.R granted by levy of premium charges, not exceeding limits as specified in point 2, may be allowed at the building site abutting road width of more than 9m.

                  5.       Premium F.A.R charges -

                  iii. The guidance value of the developed site on the same plot & put to same use as intended to be built using Premium F.A.R, shall be taken as the base value.

                  iv. Premium F.A.R charges shall be 50% of the guidance value of the additional notional sital area. Provided that Premium F.A.R charges per square meter of the additional area built shall not be less than 28% of the rate of the Guidance Value per square meter of the building site on which building is proposed.

                 

                 

                  6. The Guidance Value at building site shall be latest developed site rates as on the date of issue of Utilisation Certificate for the Premium F.A.R granted by levy of premium charges and for the use that the property is put to or sought to be put to and as published in the Gazette Notification by the Government of Karnataka under the Karnataka Stamp Act 1957.

                  7.       The Guidance Value of land at building site shall not be taken from the Guidance Value of Agricultural or Converted Undeveloped land.

                  8. The cost of construction prescribed in the Notification under section 45B of the Karnataka Stamp Act 1957 shall be used for the purpose of calculating the value of the additional building being constructed through Premium F.A.R.

                  9. In case of 2 or more abutting roads at building site, the highest Guidance Value provided to a road abutting the building site shall be considered for levying premium charges for grant of the Premium F.A.R.

                  10.     The Certificate of the Premium F.A.R granted by levy of premium charges shall be issued subject to free of cost relinquishment of area reserved for public utility and Master Plan Roads overlapping at Building Site and other provisions of the Karnataka Town & Country Planning Act, 1961, to the Planning Authority or Urban Local Bodies who issues the Premium F.A.R Certificate. In case of any dispute regarding any of above, by the Developer, the Chief Executive Officer of the Planning Authority or Urban Local Body, which is issuing the Premium F.A.R, reserves the full right to not to allow any release of plan and certificate of Premium F.A.R grantable by levy of premium charges.

                  11.     Certificate for Premium F.A.R granted by levy of premium charges shall be surrendered to the authority sanctioning or approving the development plan under section 15 of the KTCP Act, 1961, before the release of plan sanction of the Building on which Premium F.A.R is loaded.

                  12.     Premium F.A.R shall not be transferable and must be utilised only at the building site for which it is issued.

                  13. Premium F.A.R granted by levy of premium charges if left unutilised with a Developer or a Purchaser due to any reason whatsoever shall not be transferred or reimbursed by the authority which issued it.

                  14. Premium F.A.R granted after levy of premium charges may be renewed by the authority which issued it or is authorized to issue it, in case of expiry of license period after taking sanction of Plan, subject to payment of revised Premium F.A.R charges as may be applicable on the date of renewal.

                  15. Developed Site Guidance Value for the land and Building Cost for the building at building site based on location and type of use, as on the date of issue of Certificate for Premium F.A.R shall be applicable for levying Premium charges for grant of Premium F.A.R. Any increase in the Guidance Value of land or the building cost, at building site after the date of application of Building Plan and before the release of Certificate shall be passed on to the Developer/Applicant.

                  16.     In case of subsequent modification of plan or change of land use, the difference of premium charges for grant of Premium F.A.R shall be levied and recovered from the Developer/Applicant at the time of issuance of modified plan.

                  17.     Accounting for the Premium F.A.R granted on the basis of levy of premium charges shall be maintained by the Authority which issued it.

                  18. Transfer of the Certificate of Premium F.A.R granted by levy of premium charges from one site/property to another shall not be allowed for any reason whatsoever.

                  19. The premium charges levied for the grant of Premium F.A.R shall be non-refundable in case of cancellation of Building Plan.

                  20. Setback relaxation for the utilisation of Premium F.A.R granted by levy of premium charges shall be same as what is applicable in the existing rules for utilisation of the D.R.C/T.D.R.

                  21.     The premium charges collected by grant of premium floor area ratio shall be deposited in a separate head of account and shall vest solely with the Authority which issued it and the same shall be utilized only for the purposes of land acquisition and public infrastructure and the development of public infrastructure within the jurisdiction of the said Authority; and shall not be utilized, inter-alia, for repairs, maintenance and miscellaneous works at any time.

                  22. The transfer of funds from the corpus of premium charges levied for grant of Premium F.A.R for infrastructure development within the jurisdiction to any other separate Authority or SPV or Development Agency shall be as per order, either specific or a general policy, of the Government.

                  23. All appeals with respect to grant of Premium F.A.R by levy of premium charges by the authorized Authority shall lie with Additional Chief Secretary, Urban Development Department, Government of Karnataka, whose decision shall be final.

                  24. Undervaluation of premium charges leviable for grant of Certificate of Premium F.A.R shall be a cognizable offence similar to defalcation of public funds illegally from the Government Treasury and liable for action for Theft and Criminal Breach of Trust by Public Servants as punishable under Prevention of Corruption Act and the Bharathiya Nyaya Samhita (BNS). If proved, an amount equal to double the amount of undervaluation shall be recovered from the public servants concerned who are jointly and severally liable without prejudice to any other criminal and departmental proceeding that may be undertaken.

                  By Order and in the name of the

                  Governor of Karnataka

                  (RAJESH S SULIKERI),

                  Under Secretary to Government

                  (BDA & B’lore-1)

                  Urban Development Department.

                  GOVERNMENT OF KARNATAKA

                  No:UDD78MNJ2024(E) Karnataka Government Secretariat

                  Vikasa Soudha, Bengaluru

                  Dated :21.02.2025

                  NOTIFICATION-III

                  Whereas the draft to amend the Zonal Regulations of approved Master Plan of the Local Planning Area of Anekal, Kanakapura, Ramanagara, Channapatna, Magadi, Nelamangala, Bengaluru Internotional Airport Area and Hosakote, in exercise of the powers conferred under Section 13-E of Karnataka Town and Country Planning Act, 1961, which the Government of Karnataka proposes to make was published in Notification no. UDD 78 MNJ 2024 (E), dated: 04.01.2025 in part IVA of the Karnataka special Gazette dated: 04.01.2025 inviting objections and suggestions from all persons likely to be affected thereby within thirty days from the date of its publication in Official Gazette.

                  And whereas the said Gazette was available to the public on 4th January, 2025 and whereas the objections received have been considered by the State Government.

                  Now therefore, in exercise of the powers conferred by Section 13E of the Karnataka Town and Country Planning Act, 1961, (Karnataka Act 11 of 1963), the Government of Karnataka hereby makes the following regulations, namely:-

                  REGULATIONS

                  In the zonal regulations of the approved Master Plan in force of the local planning area of Anekal, Kanakapura, Ramanagara, Channapatna, Magadi, Nelamangala, Bengaluru Internotional Airport Area and Hosakote, the following new chapter shall be inserted, namely:

                  CHAPTER: PREMIUM F.A.R GRANTED BY LEVY OF PREMIUM CHARGES.

                  1.       The Premium F.A.R by levy of premium charges is the additional F.A.R granted over and above the ordinarily permissible F.A.R, on the basis of levy of premium charges by the Authority who accords permission for development of building or land under section 15 of the Karnataka Town & Country Planning Act, 1961, and in the areas as specified under Clause 2 below.

                  IMAGE

                  2. The maximum additional F.A.R available for utilization for development of additional area in any property by purchase of Premium F.A.R shall be not more than the maximum extent given in the table below and only on such roads and areas as given in table below. Provided further that in order to utilize the full extent of the additional F.A.R the Premium F.A.R shall be utilized along with the DRCs/TDRs issued under section 14B, as per table given below:

                  Entries in column (2), (3) and (4) are in multiples of permissible F.A.R.

                  NOTE: If Premium F.A.R is used for a property then as per above table the maximum permissible additional F.A.R shall be as per Col (2) and the said maximum additional F.A.R should be taken subject to maximum limit on Premium F.A.R as per column (3) and anything more than that should be utilized from the D.R.C/T.D.R.

                  3.       The format for application and utilisation of the Premium F.A.R granted by levy of premium charges shall be in the prescribed format.

                  4. The Premium F.A.R granted by levy of premium charges, not exceeding limits as specified in point 2, may be allowed at the building site abutting road width of more than 9m.

                  5. Premium F.A.R charges -

                  v.       The guidance value of the developed site on the same plot & put to same use as intended to be built using Premium F.A.R shall be taken as the base value.

                  vi. Premium F.A.R charges shall be 50% of the guidance value of the additional notional sital area. Provided that Premium F.A.R charges per square meter of the additional area built shall not be less than 28% of the rate of the Guidance Value per square meter of the building site on which building is proposed.

                  IMAGE

                  IMAGE

                  6. The Guidance Value at building site shall be latest developed site rates as on the date of issue of Utilisation Certificate for the Premium F.A.R granted by levy of premium charges and for the use that the property is put to or sought to be put to and as published in the Gazette Notification by the Government of Karnataka under the Karnataka Stamp Act 1957.

                  7. The Guidance Value of land at building site shall not be taken from the Guidance Value of Agricultural or Converted Undeveloped land.

                  8. The cost of construction prescribed in the Notification under section 45B of the Karnataka Stamp Act 1957 shall be used for the purpose of calculating the value of the additional building being constructed through Premium F.A.R.

                  9. In case of 2 or more abutting roads at building site, the highest Guidance Value provided to a road abutting the building site shall be considered for levying premium charges for grant of the Premium F.A.R.

                  10. The Certificate of the Premium F.A.R granted by levy of premium charges shall be issued subject to free of cost relinquishment of area reserved for public utility and Master Plan Roads overlapping at Building Site and other provisions of the Karnataka Town & Country Planning Act, 1961, to the Planning Authority or Urban Local Bodies who issues the Premium F.A.R Certificate. In case of any dispute regarding any of above, by the Developer, the Chief Executive Officer of the Planning Authority or Urban Local Body, which is issuing the Premium F.A.R reserves the full right to not to allow any release of plan and certificate of Premium F.A.R grantable by levy of premium charges.

                  11.     Certificate for Premium F.A.R granted by levy of premium charges shall be surrendered to the authority sanctioning or approving the development plan under section 15 of the KTCP Act, 1961, before the release of plan sanction of the Building on which Premium F.A.R is loaded.

                  12.     Premium F.A.R shall not be transferrable and must be utilised only at the building site for which it is issued.

                  13.     Premium F.A.R granted by levy of premium charges if left unutilised with a Developer or a Purchaser due to any reason whatsoever shall not be transferred or reimbursed by the authority which issued it.

                  14.     Premium F.A.R granted after levy of premium charges may be renewed by the authority which issued it or is authorized to issue it, in case of expiry of license period after taking sanction of Plan, subject to payment of revised Premium F.A.R charges as may be applicable on the date of renewal.

                  15. Developed Site Guidance Value for the land and Building Cost for the building at building site based on location and type of use, as on the date of issue of Certificate for Premium F.A.R shall be applicable for levying Premium charges for grant of Premium F.A.R. Any increase in the Guidance Value of land or the building cost, at building site after the date of application of Building Plan and before the release of Certificate shall be passed on to the Developer/Applicant.

                  16. In case of subsequent modification of plan or change of land use, the difference of premium charges for grant of Premium F.A.R shall be levied and recovered from the Developer/Applicant at the time of issuance of modified plan.

                  17.     Accounting for the Premium F.A.R granted on the basis of levy of premium charges shall be maintained by the Authority which issued it.

                  18.     Transfer of the Certificate of Premium F.A.R granted by levy of premium charges from one site/property to another shall not be allowed for any reason whatsoever.

                  19.     The premium charges levied for the grant of Premium F.A.R shall be nonrefundable in case of cancellation of Building Plan.

                  20.     Setback relaxation for the utilisation of Premium F.A.R granted by levy of premium charges shall be same as what is applicable in the existing rules for utilisation of the D.R.C/T.D.R.

                  21.     The premium charges collected by grant of premium floor area ratio shall be deposited in a separate head of account and shall vest solely with the Authority which issued it and the same shall be utilized only for the purposes of land acquisition and public infrastructure and the development of public infrastructure within the jurisdiction of the said Authority; and shall not be utilized, inter-alia, for repairs, maintenance and miscellaneous works at any time.

                  22.     The transfer of funds from the corpus of premium charges levied for grant of Premium F.A.R for infrastructure development within the jurisdiction to any other separate Authority or SPV or Development Agency shall be as per order, either specific or a general policy, of the Government.

                  23.     All appeals with respect to grant of Premium F.A.R by levy of premium charges by the authorized Authority shall lie with Additional Chief Secretary, Urban Development Department, Government of Karnataka, whose decision shall be final.

                  24.     Undervaluation of premium charges leviable for grant of Certificate of Premium F.A.R shall be a cognizable offence similar to defalcation of public funds illegally from the Government Treasury and liable for action for Theft and Criminal Breach of Trust by Public Servants as punishable under Prevention of Corruption Act and the Bharathiya Nyaya Samhita (BNS). If proved, an amount equal to double the amount of undervaluation shall be recovered from the public servants concerned who are jointly and severally liable without prejudice to any other criminal and departmental proceeding that may be undertaken.

                  By Order and in the name of the

                  Governor of Karnataka

                  (RAJESH S SULIKERI),

                  Under Secretary to Government (BDA & B’lore-1)

                  Urban Development Department."

                  x x x x x

                  "GOVERNMENT OF KARNATAKA

                  No.UDD78MNJ2024(E) Karnataka Government Secretariat

                  Vikasa Soudha, Bengaluru

                  Dated: 02.04.2025.

                  NOTIFICATION-III

                  Whereas the draft to amend the Zonal Regulations of approved Master Plan of the Local Planning Area of Anekal, Kanakapura, Ramanagara, Channapatna, Magadi, Nelamangala, Bengaluru International Airport Area and Hosakote, in exercise of the, powers conferred under Section 13-E of Karnataka Town and Country Planning Act, 1961, which the Government of Karnataka proposes to make was published in Notification-III No. UDD 78 MNJ 2024 (E), dated: 04.01.2025 in part-IVA of the Karnataka special Gazette dated: 04.01.2025 inviting objections and suggestions from all persons likely to be affected thereby within thirty days from the date of its publication in Official Gazette.

                  And whereas the said Gazette was available to the public on 4th January, 2025 and whereas the objections received have been considered by the State Government.

                  And whereas in exercise of the powers conferred by section 13-E of the Karnataka Town and Country Planning Act, 1961, (Karnataka Act 11 of 1963), the Government of Karnataka published the final regulations vide Notification-III No. UDD 78 MNJ 2024 (E), dated: 21.02.2025 in Part IVA of the Karnataka Gazette Extraordinary No. 117, dated: 25.02.2025.

                  And whereas the provisions of the said Notification since not operated by the concerned authorities and after taking into consideration the administrative convenience, the State Government has decided to withdraw Notification-III No. UDD 78 MNJ 2024 (E), dated: 21.02.2025 issued in this behalf with effect from 25.02.2025.

                  Now, therefore in exercise of the powers conferred by section 13E of the Karnataka Town and Country Planning Act, 1961 (Karnataka Act 11 of 1963), the Government of Karnataka hereby makes the following regulations with effect from 25.02.2025, namely:-

                  REGULATIONS

                  In the zonal regulations of the approved Master Plan in force of the local planning area of Anekal, Kanakapura, Ramanagara, Channapatna, Magadi, Nelamangala, Bengaluru International Airport Area and Hosakote, the following new chapter shall be inserted, namely:-

                  CHAPTER: PREMIUM F.A.R GRANTED BY LEVY OF PREMIUM CHARGES.

                  1. The Premium F.A.R by levy of premium charges is the additional F.A.R granted over and above the ordinarily permissible F.A.R, on the basis of levy of premium charges by the Authority who accords permission for development of building or land under section 15 of the Karnataka Town and Country Planning Act, 1961 (Karnataka Act No.11 of 1963) and in the areas specified under regulation 2 below.

                  2. The maximum additional FAR available for utilization for development of additional area in any property by purchase of Premium FAR shall be not more than the maximum extent given in the table below and only on such roads and areas as given in table below:

                  Provided that in order to utilize the full extent of the additional FAR, the Premium FAR shall be utilized along with the DRCs/TDRs issued under section 14B, as per table given below:

                  IMAGE

                  Entries in column (2), (3) and (4) are in multiples of permissible FAR.

                  NOTE 1: If Premium FAR is used for a property then as  per  above  table  the  maximum  permissible additional FAR shall be as per Col (2) and the said maximum additional F.A.R should be taken subject to maximum limit on Premium F.A.R as per Column (3) and anything more than that should be utilized from the D.R.C/T.D.R.

                  Note 2: The maximum additional FAR allowed for a given building site shall not be more than 60% of the regular FAR otherwise allowed free of cost. This could be availed either as combination of Premium FAR and TDR/ DRC as given in Table above or purely through purchase of the DRC/TDR.

                  3. The concerned Local Planning Authority shall be the competent authority to grant the Premium FAR.

                  4. The Premium F.A.R granted by levy of premium charges, not exceeding limits as specified in regulation 2, may be allowed at the building site abutting road width of more than 9m.

                  5. Premium FAR charges,

                  (i)       The guidance value of the developed site on the same plot and put to same use an intended to be built using Premium FAR, shall be taken as the base value; and

                  (ii)      Premium FAR charges shall be 50% of the guidance value of the additional notional sital area:

                  Provided that Premium FAR charges per square meter of the additional area built shall not be less than 28% of the rate of the Guidance Value per square meter of building site on which building is proposed.

                 

                 

                  6. The Guidance Value at building site shall be latest developed site rates as the date of issue of the Premium F.A.R granted by levy of premium charges and for the use that the property is put to or sought to be put to and published in the Gazette Notification by the Government of Karnataka under provisions of the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957).

                  7. The Guidance Value of land at building site shall not be taken from the Guidance Value of Agricultural or Converted Undeveloped land.

                  8. In case of 2 or more abutting roads at building site, the highest Guidance Value provided to a road abutting the building site shall be considered for levying premium charges for grant of the Premium F.A.R.

                  9. The Premium FAR charges paid for additional built-up area shall be reflected in the receipt issued for the payment of Building Plan approval under section 15 of the Karnataka Town and Country Planning Act 1961 (Karnataka Act 11 of 1963). It shall also be clearly mentioned the extent of built up area and the type of use which has been purchased and added through Premium FAR in the sanctioned Building Plan and the Building License issued. The issued Premium FAR stands consumed the moment the building plan is approved under the said section in which the additional built-up area is given based on the Premium FAR.

                  10.     The Premium F.A.R shall not be transferrable and must be utilised only at the building site for which it is issued.

                  11.     The Premium F.A.R. granted by levy of premium charges if left unutilized, either partly or fully, in actual construction by a Developer or a Purchaser due to any reason whatsoever shall not be transferrable to anyone else nor reimbursed by the authority which issued it. It is reiterated that the said Premium F.A.R granted stands consumed the moment the Building Plan is approved under section 15 of the Karnataka Town and Country Planning Act 1961  (Karnataka  Act  11  of  1963),  thereby utilizing the additional FAR granted through the Premium FAR.

                  12. The Premium F.A.R. granted after levy of premium charges and once issued along with the approval of a building plan shall remain valid until completion of construction of the building as per the approved Building Plan. In case the Building Plan Licence expires and the Developer/ Applicant has not completed the construction and not obtained the Occupancy Certificate then the renewal of the Building Plan may be done as per extant Rules and Guidelines. While renewing the Building Plan, the Premium FAR already issued for that building site and for the approved purpose shall remain valid and need not be purchased again.

                  13.     Developed Site Guidance Value for the land at building site based on location and type of use, as on the date of issue of the Premium F.A.R, as explained in regulation 5 under this chapter, shall be applicable for levying Premium charges for grant of Premium F.A.R. Any increase in the Guidance Value of the developed land at building site after the date of application for Building Plan and before the approval of the Building Plan shall be passed on to the Developer/Applicant and he shall be liable to pay the Premium FAR charges as applicable on the day of building plan approval.

                  14.     In case of subsequent modification of plan or change of land use leading to increase in area or increase in the rates applicable due to change in type of use, the difference of premium charges for grant of Premium F.A.R shall be levied and recovered from the Developer/Applicant at the time of issuance of modified plan at the rates applicable for Premium FAR for the increased area or due to change in type of use.

                  Illustration:

                  "A" had got Building Plan approval on 12.03.2025 for residential use which included 1,000 Sq in of built-up area approved by taking Premium FAR and subsequently on 12.12.2025 he seeks to construct additional buildings which requires 1,200 Sq m by purchase of Premium FAR and now wants to put 300 Sq m of built-up area to commercial use; then he shall pay as follows additionally while purchasing the Premium FAR at the Guidance Values applicable on 12.12.2025 for the following:

                  (i) for the increased 200 Sq m of built-up area at the rates of commercial use;

                  (ii) difference amount for 100 Sq m built-up area now sought to be put to Commercial Use by changing it from Residential Use.

                  15.     Accounting for the premium FAR granted on the basis of levy of premium charges shall be maintained by the Authority which issued it.

                  16. The premium charges levied for the grant of Premium F.A.R shall be non-refundable in case of cancellation of Building Plan.

                  17. Setback relaxation for the utilisation of Premium F.A.R granted by levy of premium charges shall be same as what is applicable in the existing rules for utilisation of the D.R.C/T.D.R issued under section 14-B of the Karnataka Town and Country Planning Act 1961 (Karnataka Act 11 of 1963).

                  18. The premium charges collected by grant of premium floor area ratio shall be deposited in a separate head of account and shall vest solely with the Authority which issued it and the same shall be utilized only for the purposes of land acquisition and public infrastructure and the development of public infrastructure within the jurisdiction of the said Authority; and shall not be utilized, inter-alia, for repairs, maintenance and miscellaneous works at any time.

                  19. The transfer of funds from the corpus of premium charges levied for grant of Premium F.A.R for infrastructure development within the jurisdiction to any other separate Authority or SPV  or  Development  Agency  shall  be  as  per order, either specific or a general policy, of the Government.

                  20.     All appeals with respect to grant of Premium F.A.R by levy of premium charges Development Department, Government of Karnataka, whose decision shall be by the authorized Authority shall lie with Additional Chief Secretary, Urban final.

                  21.     The undervaluation of premium charges leviable for grant of the Premium FAR shall be amount to defalcation of public funds illegally from the Government offences under the Bharathiya Nyaya Sanhita, 2023 and the Prevention of Treasury and, accordingly, liable for action for relevant action for the applicable Corruption Act, 1988. In addition the public servants shall also be liable for disciplinary action.

                  By Order and in the name of the

                  Governor of Karnataka

                  (RAJESH S SULIKERI),

                  Under Secretary to Government

                  Urban Development Department.

                  (BDA & B'lore-1)"

8. Rule 37-E of the Karnataka Planning Authority Rules, 1965 (for short hereinafter  referred to as 'the Rules) reads as under:

                  "Rule 37-E Charges to be levied in case of permission for utilizing Premium FAR-(1) Wherever impact zones have been identified for grant  of  premium  Floor  area  ratio(hereinafter referred to as FAR) and in any other areas specified for this purpose in the Zonal Regulations of the approved Master plans in force. The Premium F.A.R and above the ordinarily permissible F.A.R not exceeding 0.6 times of the permissible F.A.R may be allowed in the building site, abutting minimum road width of 9m and above, on levying Premium FAR charges as prescribed below, namely:-

                  Premium FAR charges:-

                  (i) The guidance value of the developed site shall be taken as the base value;

                  (ii) Premium FAR charges shall not be less than 50% of the guidance value of the additional (notional) sital area.

Illustration

IMAGE

IMAGE

                  Note: For the purpose of these rules, the term "Additional (Notional) sital area" means the additional sital area that would be required for the building derived from the premium FAR permitted as an additional FAR above the permissible FAR.

                  (iii)     The Premium FAR charges collected shall be deposited in a separate Head of Account of the Planning Authority or Local Authority which issues building plan.

                  (vi) The Premium charges so collected shall be utilized as below:

                  (a) 50% of the charges collected shall be utilized for the purpose of acquiring land and shifting  of utilities related to the purpose for which

F.A.R is issued.

                  (b) 50% of the charges collected by the Authority shall be utilized for developing infrastructure related to the purpose for which F.A.R is issued.

                  In case the agency developing infrastructure is separate from the authority which is collecting the premium F.A.R charges, then the authority shall transfer this amount to the concerned agency which is developing the infrastructure and responsible for the activity for which F.A.R is issued. i.e., in case of sub- urban rail to the special purpose vehicle (SPV) formed for that purpose, in case of Metro to the company/ SPV which is implementing the project etc."

9. The case of the petitioners is that they were given the option to choose either monetary compensation or TDR when their respective lands were acquired and they chose TDR. It is their contention that State has the duty to protect value of the said TDR. Any act on the part of State devaluing the TDR has the effect of violating rights of the petitioners guaranteed under Article 300A of the Constitution of India. It is submitted that Premium FAR has an adverse effect on the TDR granted in favour of the petitioners. In this regard, following grounds are urged:

                  Adverse Effect of Premium FAR on TDR:

                  1. Additional Floor Area over and above the maximum permitted Floor Area Ratio could have been availed only by usage of TDR, hitherto. After the introduction of PFAR, additional FAR can be availed through PFAR. Since PFAR and TDR operate in the same realm, introduction of PFAR has direct adverse consequences on TDR as stated hereinbelow:

                  a. Value at which TDR is sold in the market and made available to purchasers who want additional FAR is a matter of contract between them and often mirrors the market value of sale and purchase of actual physical land in a particular area. With the introduction of PFAR which is available at 50% of the Guidance Value of notional land and 28% of the Guidance Value of building, a person inclined to get additional FAR will purchase PFAR instead of TDR. This predatory pricing by the State is to make PFAR attractive to purchasers which wipes out the market for TDR Holders. Any rational person will choose a good which costs lesser than the other if they serve the same purpose. The State has introduced PFAR with the sole object of increasing revenue as stated hereinabove. Therefore, the State is charging Premium Charges which is at 50% of the Guidance Value making Premium FAR less expensive than TDR so that more persons get additional FAR through PFAR rather than TDR. For it is only in such a case that the object of increased revenue would be achieved.

                  b. PFAR is being doled out by the State with least bureaucratic hassles, merely on making an application. On the other hand, the State has introduced unnecessary red-tapism when it comes to approval of TDR and its utilization. This aspect also makes PFAR more attractive than TDR and will lead to decline in interest for TDR.

                  c. The conveyance of TDR for utilization is like conveyance of actual physical land mandating payment of stamp duty and registration fee. The conveyance takes place through written registered instrument. From the Impugned Notification it is not forthcoming that Premium FAR will be sold by way of a registered instrument for which stamp duty and registration would have to be paid like conveyance of actual physical land. This aspect makes Premium FAR more attractive since it reduces costs for the purchaser.

                  d. In roads between 9-12 meters, which is majority of the roads in Bangalore, TDR cannot be used at all to get additional FAR as per Impugned Notification. Additional FAR is only by way of PFAR. This wipes out a significant market for TDR Holders.

                  e. In roads over 12 meters, TDR can also be used as per the Impugned Notification. However, the same is illusory. There is no compulsion that a builder makes use of the entire additional permissible additional FAR. If the additional FAR component required is met by usage of PFAR, the question of buying TDR also will not arise. The cost and benefit analysis of usage of PFAR and TDR leans in favour of PFAR for reasons stated above, deliberately engineered in this manner by the State. In such cases, the market for TDR will be wiped out, since there will be no preference or need for TDR.

                  f. TDR was introduced in the year 2004 and persons have opted for TDR without any knowledge of introduction of PFAR. Since there is no time limit on usage of TDR, several TDR Holders have held on to the TDR waiting for the price to rise. At this juncture, if their TDR is rendered worthless, they will suffer severe economic prejudice perpetuated by no less than the State.

                  2. The stark difference in the area available through Premium FAR and TDR and the price of PFAR and TDR are illustrated by of the following:



                  3.       At this stage it is also pertinent to highlight the differences between PFAR and TDR in its operation and effects. PFAR can be utilized in any area/locality by any person. Resultantly the usage of PFAR will be rampant and intractable exacerbating the problems of congestion and lack of infrastructure. However, TDR arises only in limited circumstances namely if there is acquisition of any land and the landowners have opted for TDR. Hence the apprehension of TDR leading to mushrooming of built-up area is no way close to the rampant use of PFAR permitted by the Impugned Notification. The State has introduced TDR bearing in mind these factors, only as an exception. Secondly, TDR was introduced with the object of compensation and is part of the duty of the State under Article 300A to ensure there is a market for TDR. However, PFAR is only a revenue making measure with scant concern for planning, strain on resources, or obligation of the State towards TDR Holders. Thirdly, it is the State that is a direct beneficiary of PFAR charges whereas value for TDR utilization enures to citizens who have given up land to the State. Hence the justification of the State that TDR Holders also earn revenue is only a chimera.

 10. It is further submitted Premium FAR is manifestly arbitrary and legalises illegal building.

11. It is also submitted that the additional built-up area on account of Premium FAR will mean mushrooming of high raise buildings without proper setback and amenities and will make life of citizens living in the city of Bengaluru miserable and violate their right under Article 21 of Constitution of India. It is also submitted that Section 18B of the Act suffers from excessive delegation.

12. It is also submitted that introduction of Section 18B of the Act goes against the very purpose of the Act, whose objects is for orderly development of the city.

13. It is also urged that the impugned notifications under challenge are contrary to Section 14B of the Act. It is also submitted that the impugned notifications have not notified in the manner known to law.  On the said grounds, it is prayed that the writ petitions be allowed.

14. Per contra, the respondents justify the amendment as well as notifications and pray for dismissal of the writ petitions.

15. Both the Premium FAR and TDR are intended to permit the land owners to put up additional construction over and above FAR i.e. what is permitted normally, by paying a consideration. In case of Premium FAR, the consideration is paid to the State. In case of TDR, it is paid to the person who owns the TDR. The effect of both TDR and Premium FAR are one and the same on the society. Under the circumstances, the petitioners cannot urge the ground that Premium FAR is manifestly arbitrary since it regularizes the illegal buildings, the built-up area on account of Premium FAR will violate Article 21, the amendment introducing Premium FAR is contrary to the object of the Act.

16.  Further, the petitioners have failed to show how Section 18B suffers from very excessive delegation. Prescribing the details pertaining to Premium FAR, in my opinion is best left to the executive depending upon the situation and the same is permitted under Section 18B of the Act. The delegated legislation is not excessive. Similarly, the notifications cannot be construed as contrary to Section 14B of the Act as the same are passed in furtherance of Section 18B of the Act and the provisions have to be harmoniously constructed. Similarly, the petitioners have failed to show any illegality in respect of retrospective operation of the impugned notifications or the right of Premium FAR charges in the impugned Rules being contrary to Section 18B of the Act as contended by them. Similarly, is the case in respect of manner in which the notifications are being enacted. I do not see any error in the same.

17. Insofar as it relates to impact of Premium FAR over the TDR, definitely introduction of Premium FAR may have the effect of reducing the value of TDR held by the person. However, it is not in dispute that for a person owning a bigger site, to achieve maximum FAR as per amendment and notifications under challenge, the same can be achieved only by utilizing the TDR.  It is not possible for a person to achieve maximum FAR by merely using the Premium FAR.

18. Any person wanting to commercially exploit a piece of land in a city like Bengaluru, in the usual course of business practice would put up a construction by utilizing the maximum FAR and in the instant case, the same can be done only by purchasing the TDR from private individuals. Hence, the policy of the State cannot be termed to violate the right of the petitioners under Article 300A of Constitution of India nor can the amendment and the impugned notifications can be considered arbitrary and unreasonable. Though several decisions of the Apex Court and this Court are cited by both petitioners and respondents, the same are no consequence as on the peculiar facts and circumstances of the case one has to conclude that introduction of Premium FAR will not adversely affect the TDR owners so as to conclude that they are deprived of their rights under Article 300A of Constitution of India or that amendment and notifications regarding  Premium  FAR  are  arbitrary  and  unreasonable. Further, it is also not in dispute that the concept of Premium FAR is prevalent in cities like Mumbai and Ahmadabad outside Karnataka.

                  The petitioners having failed to make out a case, the writ petitions stand dismissed.

                  Pending I.As., if any, stand disposed of.
 
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