Summary: The High Court of Karnataka upheld the constitutional validity of the Premium Floor Area Ratio scheme, which permits landowners and developers to construct additional built-up area beyond the ordinarily permissible FAR upon payment of prescribed premium charges. The judgement affirms the State’s authority to regulate urban density through vertical growth, with significant implications for development potential of properties abutting roads of 12 metres and above, while TDR holders face a recalibrated market.