Few days back I came across the question from one of my friend and

client who is interested to purchase land and that land is of B Khata. He

asked me is it good to have this property with B khata and what is the

difference between A Khata and B Khata. So just thought to write up on

this issue.

First let us look at what is meant by “Khata” according to BBMP (Bruhat

Bangalore Mahanagara Palike). Khatais an account of assessment of a

property, recording details about your property such as size, location,

built up area and so on  for the purpose of payment of property tax. It is

also a kind of identification of the person who is primarily liable for

payment of tax.  It is required when you require a building license,

trade licence or loan from banks or any other financial transactions. It is

mandatory for all property owners to pay property tax, hence you need to

have khata.

Now difference between Khata and Title Deed is, khata is an account of

assessment of a property for payment of tax only. Hence khata will not

confer ownership of property. Whereas Title Deed is the valid document

which confer ownership on property.

Let us look at the reasons behind the origin of A Khata and B Khata

lands. In 2007, those under the seven City Municipal Councils (CMC)?of

Bommanahalli, Dasarahalli, Krishnarajapuram, Raja Rajeshwari Nagar,

Mahadevapura, Byatarayanapura, Yelahanka, one Town Municipal

Council (TMC) of Kengeri and 110 villages, were brought under the fold

of the Bangalore Mahanagara Palike (BMP). Following this expansion and

creation of the Bruhat Bangalore Mahanagara Palike (BBMP), those who

did not have appropriate approval from the concerned land development

authority and yet to come under the ambit of the Palike were issued an

acknowledgment which was in common parlance known as ‘B’ Khata.

However, in reality, ‘B’ Khatha does not exist. Property identification

numbers are entered into a register called as  ‘B’ register stating that the

civic agency has been paid its dues by the property owners. For citizens

in need of an approval from the appropriate land development authority

but have a Deputy Commissioner (DC)?conversion, the BBMP re-

introduced Betterment Charges which will entail people to take a Khata

on their property. This is how B Khata originated in the mind of property

owners but not legally 

Now the disadvantages of having B khata is that, you will not get building

license, trade licence or loan from banks or any other financial

transactions. Hence it is big hurdle to have B Khata land. Now what are

the ways of converting B Khata land to A khata?

By paying betterment charges you can convert B Khata to A Khata. But

you will face lot of hurdles, few of them are as below.

1) You should have DC converted property

2) Tax must be paid till date

3) Betterment charges for the conversion property need to paid to BBMP.

So the solution is to avoid purchasing B Khata properties and prefer A

Khata to have comfortable position in dealing future financial transaction

hurdles.

Municipal byelaws

(1) What is BBMP A Khata and B Khata and is it safe to buy B-khata sites?

'Khata' as per BBMP byelaws means an account for BBMP to receive taxes into for area maintenance. Khata can be bifurcated into smaller units of any property or amalgamated where two seperate units are to be treated as one. Other than being an account certificate, Khata does not have no more authenticity to certify a genuine property. 

A Khata - is the proper account where the developer has paid betterment charges to BBMP

A Khata conditional - is a temporary account where the developer swears by a affidavit that he will pay the betterment charges in a certain period normally 6 months and requests for a account. Developers misuse this, and bifurcate the accounts into sites/flats on a conditional A khata basis.  

B Khata - B register (not Khata) by general meaning is a risky plot which does not have clear legal documentation, this can happen when the property might be on a unauthorized layout, revenue layout formed on agricultural land, DC converted land, in case of an apartment has not received occupancy certificate, betterment charges not paid by land owner, in case of a building where there is no plan approval or any other form of non-compliance to municipal rules and regulations.

(2) What is BDA Khata? 

Private developers within the BDA jurisdiction need to get a BDA approval for layout formation. BDA approves that the layout has been formed as per the regulations and releases 40% of the sites on completion of all the development work they release the remaining 60% of sites. BDA collects tax payments from site owners for these approved layouts in a BDA khata. These khata documents can be safely transferred to BBMP when the area comes under BBMP jurisdiction.

(3) A layout has been formed on DC converted land and the owner has got BBMP A khata for the land, is it safe to buy plots here?

You need to verify if the layout has been approved by BDA/BMRDA. DC's conversion to residential use order clearly says that conversion is subjected to developer complying  to town and country planning laws  otherwise DC has the rights to cancel the conversion. Secondly, verify with BBMP if the A khata is conditional or permanent.

(4) I purchased an apartment which had A khata with the owner, but after I purchased BBMP officials are saying that they can only issue B Khata, can you please explain how can this happen?

As per Karnataka municipal corporations amendment act 2009, sec 108A 

"(3) The Bruhath Bangalore Mahanagara Palike may levy and collect the property tax from every building, vacant land or both including a building constructed in violation of the provisions of building byelaw or in an unauthorized layout or in a revenue land or from a building occupied without issuance of occupancy or completion certificate except the building constructed illegally in Government land, land belonging to any local body, any statutory body or an organization owned or controlled by the Government. The property tax collected from such building shall be maintained in a separate register:Provided that levy and collection of property tax under this sub-section from such building does not confer any right to regularise violation made, or title, ownership or

legal status to such building. Such buildings shall always be liable for any action for violation of law in accordance with the provisions of this Act or any other law."

DC converted land owner who wishes to pay tax for the entire land will get A Khata. However, if the layout is formed is a unauthorized layout or a revenue land without DC conversion, then BBMP will collect taxes for such properties in a separate register called B Khata however this does not guarantee any right of ownership or legal status. It simply collects taxes for area maintenance.

While forming apartments, A khata is provided against an affidavit that the developer will pay betterment charges in a short period. A khata is also issued to flat owners by khata bifurcation. But if the developer does not pay betterment charges, BBMP stops issuing A khata to the second purchaser.

(5) What are documents needed for purchasing a BDA site?

1. Registration documents  - get certified copies from Sub-registrar office - Legal opinion most useful here

a. Mother deed b. Sale deedc. Encumberance certificate for last 30 years matching the sale deed historyd. Search for any court cases in the name of party - http://causelist.kar.nic.in/caseStatus_PartyNameDistrict.asp

2. Transfer of property from BDA 

a. Allotment letter from BDAb. Fee payment receipt c. Possession certificated. Sale deed from BDA to allotee.e. Khata certificate from BDA in the name of alloteef. Upto date tax payment receiptsg. Khata transfer certificate

Town Planning Authority

(1) Is it required to have approved plan for apartments and residential layouts in Bangalore? Who is the layout plan approval authority?

Yes, as per BDA and BMRDA acts it is essential that every apartment and residential layout in Bangalore is approved by these agencies. The layout approvals authorities are BBMP  (areas in interior Bangalore), BDA (areas inside city limits, except BBMP areas), BMRDA (areas upto 40-50 km around the city except BDA areas, includes Anekal, Kanakapura, Hoskote), BIAPPA (areas near airport), BMICPA - areas around Bangalore Mysore infrastructure corridor, Lake Development Authority or LDA (areas close to designated lakes), and respective village Panchayats (for areas far away from the city - basically those areas where BMRDA jurisdiction has not yet become applicable) 

(2) What are revenue sites, is it safe to buy revenue sites?

Revenue site is another name for sites formed on agricultural land without DC conversion

or town planning authority approval. Agricultural land utilized for residential purposes without DC approval could lead to confiscation of the property.

(3) Can you please explain what is DC conversion; should a land necessarily get a DC conversion for layout formation?

DC conversion is an approval from Deputy Commissioner's office that land can be used for non-agricultural purposes such as residential, commercial, industrial, educational purposes. This is typically done based on the zone markings provided by town planning authority. DC conversion order clearly indicates that approval is subjected to compliance to town planning laws for layout formation or apartment construction.

(4) Is it possible that a BDA or BMRDA approved layout be formed on a land under litigation?

Yes, please obtain the survey numbers from the BDA or BMRDA layout approval and take them to a lawyer, he or she should be able to verify if there are any cases on those lands.

(5) What are released and unreleased sites, builder is saying that I can register a unreleased site, is this safe to buy?

BDA or BMRDA approval is issued with a condition that the developer provides the necessary roads, parks and other civic amenities. To make sure that the developer does it, they hold back about 40% of the sites, these sites should not be sold or registered until they are released by the authority. You run a risk of losing the site if the developer does not develop the layout as per town planning authority approval.

(7) What is BDA NOC - is it the same as BDA approval?

BDA NOC document states that, BDA has no objection in the buyer purchasing the land as it is not marked for any development or acquisition by the BDA. This is not necessarily a layout approval though, the developer should necessarily obtain layout approval.  

(8) What is BDA occupancy certificate? Why is it needed?

BDA issues an occupancy ready certificate that the apartment is ready for occupation by the residents after verifying the construction and compliance to the approved plan. 

(9) How can I know if a layout has not been approved by BMRDA or BDA? 

Please reach out to BDA or BMRDA offices with the survey numbers, village, hobli, district under which the layout has been formed. They will be able to provide you information if the layout has been approved.

(10) What is a BDA compensatory site? Is it safe to buy it? How can I know that a site is a compensatory site?

Compensatory site is a site issued to land owner whose land has been acquired by the BDA. As the site has been issued as a compensation, issues of inheritance come into question here when the allottee tries to sell the site. Verify with BDA office if it is a

compensatory site and get signatures of all the family members who had a share in that acquired land. Please consult a lawyer.