You would have commonly come across the term ‘Khata’ if you are a homebuyer in Bangalore. Well, Khata is nothing but an account with the Bruhat Bengaluru Mahanagara Palike (BBMP) which records property details such as size, location and built-up area and accordingly assesses the property tax that the owner is liable to pay.
It is known to be available in two types – A Khata and B Khata. The Khata issued by BBMP is called ‘A’ Khata. It is a legitimate proof of the ownership of the property. Through it, one can avail construction rights, home loans and even register their properties.
‘B’ Khata, in reality, does not exist. The accounts of properties which were earlier under the Village and the Town Panchayat and were later transferred to be under BBMP, are maintained in a separate register, called the ‘B’ Register. The BBMP uses it to assess and collect taxes from these property owners but is not responsible for the legitimacy of the transactions happening on these properties.
In order to obtain an ‘A’ Khata Certificate and get the properties regularised, property owners are required to present documents such as DC Conversion and till-date tax receipts. DC Conversion is an official conversion of the land use from Agricultural to Non-Agricultural (NA). Its application is made to the Deputy Commissioner of the district who holds the right to refuse the land use conversion on the basis of certain norms.
In addition to presenting the documents, the property owners are also required to pay betterment charges to the BBMP. The charges range from Rs 200 per sq meter in the 100 old wards of Bangalore, and Rs 250 per sq meter in the remaining 98 wards of New Bangalore. The BBMP has planned to raise the betterment fees by 10 per cent every year.
Though there are provisions to get ‘B’ Khata converted to ‘A’ Khata,investors are advised to prefer ‘A’ Khata or regularised properties to reap better return on investments.