Khata: A Conundrum

Did you know that it is mandatory to apply for khata within 3 months of sale deed?

Here is clarity on the most confused information on different kinds of Khatas being issued by civic authorities, such as A Khata, B Khata and E-Khata.

Khata (Urdu/Hindi word), virtually means an account. Yes, Khata is an account of your property, maintained by BBMP (Bruhat Bangalore Mahanagara Palike) or BDA (Bangalore Development Authority) or jurisdictional civic authority.

Although, Khata is not an ownership document (title document, such as sale deed/gift deed/partition deed etc.), it is most important property document for assuring that property is recorded in the books of BBMP. It may be noted that under Section 114 of Karnataka Municipal Corporation Act 1976, it is mandatory to apply for khata transfer within three months of sale deed/transfer of ownership through gift, family partition etc., or on the death of Khatedar (Account Holder).

On accepting the application for Khata, the property is registered with BBMP and it is assessed to tax, assigned a municipal number and records the person’s name responsible to pay property taxes.

Confusion: Types of Khatas in Bangalore

‘A’ Khata:

‘A’ Khata document enables property owners to enjoy all amenities provided by Govt. authorities, such as apply for building plan approval, trade licenses and avail bank loans on the property etc.

Contents of ‘A’ Khata

Khata Certificate: A document issued by BBMP in the form of a certificate asserting that a particular property’s tax records are in the Owner’s/Khatedar’s name. It is required for property registration or transfer of a property from seller to buyer or from transferor to transferee.

Khata Extract: The extract contains all the details of a property as recorded in the property assessment register. It includes details such as owner’s/khatedar’s name, the extent of the property, valuation of the property, use of the property, demarcations, etc.

‘B’ Khata:

‘B’ Khata is issued to such properties which are illegal or developed/constructed in violation of Government regulations applicable to properties. BBMP holds the right to collect taxes from such properties including constructions on revenue land, properties (land and buildings) falling in unauthorized layouts, etc.

 

It may be noted that ‘B’ Khata property owners cannot apply for construction plan approvals, trade licenses from BBMP and cannot avail home loans/loan against properties on such properties.

One solace is that having a ‘B’ Khata does not prevent the property owners from selling/transferring properties and such title deeds will also be registered in the jurisdictional Sub Registrar’s office.

In case of ‘B’ khata, there will be no Khata Certificate and only Khata Extract is issued by BBMP, clearly mentioning that the details of property are extracted from B-Property Register, maintained for properties without Khata / Property Identification Numbers (PID).

E-Khata:

E-Khata (Electronic Khata) is very same as that of ‘A’ Khata (regular khata in physical form) issued in digital form. BBMP issues E-Khata for properties where digitalizations of property records are completed. One can make online application and get an E-Khata.

Under Karnataka Panchayath Raj Rules, properties coming under Village Panchayath limits will have E-Khata for non-agriculture properties containing Form 9 and Form 11.

  1. Form 9: Form-9 is a document issued by the Gram Panchayat for non-agricultural properties in its jurisdiction. Form 9 is issued to properties duly converted as per the provisions under of the Karnataka Land Revenue Act and have approved plans sanctioned as per the Town and Country Planning Act and developed conforming to all Government Rules as applicable to properties. Form 9 contains the assessment list of lands and building liable to taxation.
  2. Form 11: Also called as Register of Demand, Form 11 records the demand, collection and balance of land and building taxes.

The Government of Karnataka has made it mandatory to submit Form 9 and 11 at the time of registration of sale/transfer of properties.

Similar to B Khata of BBMP, Gram Panchayaths will issue Form 11B for illegal or properties which don’t conform to Government Rules as applicable to properties, but collect taxes on land and buildings.

Rajendra Deshpande, Managing Director, PropSeva®

Chartered Engineer                        Mortgage Banker