Q. Consider the following statements: 

1. The Governments can increase the Floor Space Index to curb the real estate prices
2. The Increased Floor Space Index means less apartments in the same plot area

which among the above statements is / are correct?
Answer: Only 1 is correct
Notes: Total covered area on all floors of all buildings on a certain plot divided by Area of the plot is called Floor Area Ratio or Floor Space Index (FSI). For example FAR 2.0 indicates that the total floor area of a building is two times the gross area of the plot on which it is constructed, (and it is a multiple-story building). Increasing FAR means that now more apartments can come up on the given area of a plot. The increase in FAR increases supply and helps in curbing the real estate prices.