In a big respite for property holders in the state of Karnataka, the state cabinet has now cleared the policy for the transfer of B-Khata property to A-Khata property for structures situated in unauthorized layouts under the jurisdiction of Urban Local Bodies. This will be applicable for houses, apartments, and flats and will hopefully increase the legitimacy of these properties..
Law and Parliamentary Affairs Minister H.K. Patil, announcing the decision following a meeting of the cabinet, said, it is a policy-level measure to address the problems faced by property owners in plots developed without layout approvals."
According to Minister Patil, The A-khata certificates are issued for properties developed in approved layouts only, and properties in layouts which have not obtained mandatory approvals fall under B-khata properties till date. However, now it has been approved to up-grade ‘B-khata’ sites and residential units to ‘A-khata’ within the jurisdiction of Urban Local Bodies in the cabinet meeting.”
What the Decision Means?
In Karnataka, a khata is an official property account maintained by municipal authorities. It records essential details such as ownership, location, size, and tax assessment and is required for paying property tax and accessing civic services. While A-khata properties are fully compliant with planning and building regulations, B-khata properties are those that do not meet all statutory norms but are still taxed by local bodies.
The cabinet’s decision allows properties that were earlier categorised as B-khata solely due to the absence of layout approvals to be regularised and brought into the mainstream municipal framework. According to the minister, the policy has not been stayed by any court, allowing the government to proceed with its implementation.
B-khata registration is a system that was brought forth in 2009 to document properties that had not adhered to planning guidelines but had already existed. This can be in unauthorized layouts, buildings that had no plans to work from, or properties that lack occupancy certificates. While the owners get to pay taxes, they get limited in a number of ways.
It is pointed out that B-khata properties are not treated as fully legal properties, which affects the ability of the property owners to sell their properties freely, get approval for building plans, trade licenses, or loans from banks. Such properties therefore sell at a lower price compared to A-khata properties.
Advantages of A-Khata Status
An A-khata is a certification that shows complete compliance with government requirements. These include layouts that have been approved and authorized construction plans. When properties have A-khata documents, they can easily get loans from banks and sell. Additionally, business licenses and redevelopment approvals also become accessible.
The cabinet’s move is therefore expected to unlock trapped value in thousands of properties, particularly in urban and peri-urban areas where unauthorised layouts proliferated due to rapid urbanisation and weak enforcement in earlier years.
Connection with Previous Regularisation Initiatives
This move follows other initiatives that have been undertaken by the Karnataka government to solve the problem of B-khata. In July last year, the cabinet approved the regularization of B-khata property documents issued by the Bruhat Bengaluru Mahanagara Palike, or BBMP, up to September 2024.
In the given situation, a press note released by the government recognized that the result of unplanned growth and unauthorized development was the emergence of lakhs of B-khata plot holdings, thereby giving rise to the need for a control system for such plots through the Karnataka Town and Country Planning Act.
It further stated that according to the Greater Bengaluru Governance Act, no unauthorised property constructed after September 30, 2024, will be eligible for B-Khata, which shows that there will be a tough policy in the coming years.
Although the cabinet has cleared the proposal, specific regulations and terms of eligibility, charges, and adherence are expected to be announced by the urban local authorities soon. Property holders and real estate professionals are keenly observing how the government manages the issue of regularization while ensuring planning control to avoid any illegal growth in the future.
The move can prove to be a turning point for Karnataka’s urban property sector governance as it will provide much-needed relief to property owners, besides introducing much-needed transparency in the real estate sector of the state.
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