FAR Amendment Bill passed by Karnataka Legislature with Council's nod amid walkout by BJP

The Karnataka Town and Country Planning (Amendment) Bill 2024, allowing for the sale and purchase of premium floor area ratio (FAR), was passed by the Karnataka legislature, with the Legislative Council’s assent on Thursday. The law allows developers to build additional floors by purchasing additional FAR and paying a fee of 40 per cent of the guidance value to the local planning authorities. Premium FAR provision is expected to increase revenue to local planning authorities, which, therefore, can invest more in developmental works. The Bill provides for the proceeds from premium FAR fees to be used for land acquisition and development of basic amenities.

The premium FAR has been limited to 0.4 per cent, while the limit for the Transferable Development Right (TDR) is at 0.6 per cent. Deputy Chief Minister D.K. Shivakumar, who also holds Bengaluru City Development portfolio, tabled the Bill in the upper house. He clarified that the amendment simply builds on an existing law and extends the benefits to the rest of the state.

During the debate, the opposition BJP members raised concerns regarding potential congestion due to additional construction and the strain on Bengaluru’s infrastructure. However, Deputy Chief Minister Shivakumar assured them that their concerns would be considered, and the amendment only aims to enhance revenues for local planning authorities.

The opposition members, led by Leader of the Opposition in Council Kota Srinivas Poojari, eventually walked out of the House, expressing their dissatisfaction with the passing of the Bill without thorough discussions. Meanwhile, the Legislative Council also passed the BBMP Property Tax Amendment Bill 2024, which halved the penalties on property tax.

The passing of the Karnataka Town and Country Planning (Amendment) Bill 2024 has sparked a debate, with concerns raised by the opposition about potential congestion and strain on infrastructure. However, the government maintains that the amendment only seeks to benefit the state and enhance revenues for local planning authorities. The opposition’s dissatisfaction with the passing of the Bill without thorough discussions led to a walkout by Leader of the Opposition in Council Kota Srinivas Poojari and other BJP members.