In a momentous step that will bring relief to hundreds of thousands of homeowners, the Karnataka state government has presented a massive development victory to land owners in Bengaluru. The Greater Bengaluru Authority (GBA) and the state urban development department are moving towards a resolution to make a breakthrough to convert B-Khata properties, especially flats in authorized apartment complexes, to A-Khata status. And the move, long awaited, is something which will surely help around 10 lakh real estate holders across the city, who have long languished in legal limbo.
Bridging the Gap: The shift from B-Khata to A-Khata
The distinction between 'A' and 'B' Khata has long been a source of disquiet for Bengaluru residents. While A-Khata means wholly legal assets, with all the necessary approvals, a B-Khata basically is merely a secondary register entry used to collect property tax from sites that are not legally clear yet or which have minor violations or lack certain approvals.
The amended proposal seeks to regularize authorized apartments and buildings that may have minor deviations from the Karnataka Parks, Playgrounds and Open Spaces (Preservation and Regulation) Act, 1961. With the opening of A-Khata for these properties, it is hoped that homeowners will be granted legal ownership in the building and will have legal access to bank lending, market-value sales, and approval to build plans.
Conversion Barriers and Costs
Being converted is not automatic, but requires compliance with the guidelines and payment of prescribed fees. Owners need to meet certain criteria for the upgrade:
- Tax Compliance: There must be no outstanding property tax arrears for the apartment or property for the current year.
- Sanctioned Plans: The building should possess a basic sanctioned plan/map.
- Standard Conversion Fee: The owners are charged a fee of 5% of the government guidance value of the property.
- Deviation Penalty: If the construction exceeds the prescribed plan, a penalty of 50% of the guidance value will be imposed on the deviated part.
- Online Application: The entire process will be digitized. For E-Khata, owners must register through the official online portal which ensures that the process is transparent and prevents corruption.
A Boost to Government Revenue
While the move is being celebrated as “Good News” for residents, analysts emphasize that it’s a move — as well as a desire — to provide the state more cash. In particular, with millions of properties eligible for conversion, collections on regularization fees and penalties are meant to generate thousands of crores in revenue for the municipal bodies.
While its purpose lies in the wealth-generating aspects of an area, the socio-economic impact on citizens is far more substantial. "An A-Khata is more than a piece of paper; it's the gap between an empty portfolio and a liquid one," said one local real estate expert.
Next Steps for Homeowners
The government is likely to issue the final notification and open the online portal for applications in the coming days. It is recommended that the property owners prepare their property tax receipts, sanctioned plans, and existing B-Khata documents in a timely manner.
