Know More About Khata and Different Types of Khata
You want to buy property, but you keep hearing “Khata, khata, A-khata and B-khata.”, and you are not sure what exactly it means, then what you are about to read will benefit you greatly.
Few questions to look into before we understand about khathas:
What is a municipality?
A Municipality is a district’s local government. There are three levels of government: The Central Government, the State Government, and the District Municipality. The District Municipality in Bangalore is called the BBMP, Bruhat Bengaluru Mahanagara Palikhe, that came into existence in 2007.
What are the responsibilities of BBMP?
- Zoning and building regulations
- Quality of life issues such as lung spaces, water bodies, parks and greenery.
What is the structure and leadership of the BBMP?
BBMP is run by City council composed of elected representatives, called corporators, one from each of the wards (localities) of the city,.
That is, the City is divided into regions called wards. There are 199 wards in Bengaluru. And each of these wards has a Corporator to represent their region in the BBMP.
The BBMP is led by Mayor R. Sampath Raj, Indian National Congress. Elections in the BBMP are held once in five years.
For HBR Layout, the ward number ID is 24, and our Corporator is B. Govinda Raju. To find out the ward number and Corporator of your region, please see http://bbmp.gov.in/kn_IN/.
Are the Panchayat and BBMP the same thing?
No. BBMP covers most of the urban areas of Bengaluru and is growing in its territory, whereas the Panchayat covers rural areas.
In other words, property under the BBMP gets an A khata, and the property under the Panchayats get a B khata.
What is the difference between Title Deed and Khatha?
Many get confused between these two documents.
A Title Deed is written contract between the buyer and seller during the transfer of property, to prove ownership of the property.
A khata is a document to assess the property for the purpose of paying taxes and to keep records.
Now we’re ready to understand the khata document…
Khata literally means an account. It is a document that shows that the property owner has an account with the Municipality to pay taxes. A kata consists of two elements: Kata Certificate and Kata Extract.
Khata Certificate is required for property registration and transfer of property from the owner’s name to another person’s name. To apply for a khata certificate, the owner has to give a letter in this regard along with the latest tax payment receipt along with a standard fee of Rs 25 per property. A khata certificate will enable you to apply for water connection, electricity connection, bank loan, or acquiring a commercial license.
Khata Extract contains details of the property like its size, whether it is used for commercial or residential purpose, the valuation of the property as per the latest assessment. It can be obtained by paying Rs.100, and is valid for five years.
How to apply for Khata?
- Buy a khata application form from the BBMP office.
- Fill the form along with your property details and latest tac receipts.
- Submit the form to the Assistant Revenue Officer for HBR Layout. The SRO is Mr. Narayan, who is seated at Shop Number 16, BDA Complex, Opposite KEB Office, HBR Layout, Bangalore.
- Time taken is about 5 weeks, to get the Khata either from the BBMP office or the Panchayat office.
- To know the details of the ARO for your locality, please see http://bbmp.gov.in/documents/
What is the difference between A-Khata and B-Khata?
- A-Khata properties fall under the jurisdiction of the BBMP, whereas B Khata properties fall under local jurisdiction (that is, the Panchayat)
- An A-Khata means you are buying a property that is legal, and it will allow you to construct on it and obtain a trade or building license.
- There are many advantages of owning an A-Khata property. One such advantage is bank loans.
- For B-Khata properties, it is very difficult to get bank loans. In the case of B-Khata, you are not entitled to have a building license, trade license, or loan from a bank or any other financial transaction.
- B-Khata is only a temporary measure which will allow you to buy or sell a site, but you will face problems when you go for construction.
How did the B-Khata come into existence?
When the BBMP was formed in 2007, they had two major problems to solve:
- Illegal constructions enjoying civic amenities without paying taxes
- No uniform taxation policy
So, the BBMP imposed a tax on the illegal constructions. The taxes collected from there properties were recorded in a register called B register and the Khata issued was called B-Khata. Thus, anyone having a B-Khata essentially is a non-BBMP approved construction. Hence, it is not advisable to buy such properties.
However, it is possible to convert a B-Khata property in an A-Khata property.
How to convert B-Khata to A-Khata?
- You should have DC converted property.
(DC Conversion is a legal process and is mandatory under Section 95 of the Karnataka Land Revenue Act, by which the occupant or the property owner makes an application to the Deputy Commissioner of the District seeking his assent/permission/sanction for the change of land use from agriculture to non-agriculture (Residential/ Public Use/ Semi Public Use/ Industrial/ Commercial) use. The Jurisdictional revenue authority will consider the application on the basis of rules and regulations formulated for this purpose and accordingly an order may be issues. The Conversion fee/fine is levied and an official memorandum (OM) is issued to the applicant, directing the applicant to pay the same to the state treasury. Upon the confirmation of such payment, the Deputy Commissioner will issue a Conversion Order.
- Property tax must bee paid till date
- Betterment charges for the conversion of property has to be paid to BBMP
Hoping this article will be beneficial to you. 🙂
To know more about availability of A-Khata properties and conversion possibilities of B-Khata properties, please reach out to us.