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State of Offer A-Khata Status to B-Khata Properties: What it Means For Property Owners in Karnataka

A-KHATA STATUS TO B-KHATA PROPERTIES

State of Offer A-Khata Status to B-Khata Properties: What it Means For Property Owners in Karnataka

Introduction:

In a significant move aimed at providing relief to lakhs of property owners, the Karnataka State Government has announced its decision to offer A-Khata status to B-Khata properties that fall under the jurisdiction of urban local bodies. This announcement, reported by The Hindu, marks a major policy shift that could bring long-awaited legitimacy to properties that were earlier considered unauthorized or irregular.

The decision is expected to impact nearly 10 lakh properties across Karnataka, particularly in urban areas such as Bengaluru and other municipal limits.

 

Understanding A-Khata and B-Khata:

Before delving into the policy details, it is important to understand the difference between A-Khata and B-Khata:

  • A-Khata properties are legally approved properties that comply with planning regulations, building bylaws, and zoning laws. These properties are eligible for:
  • Property registration
  • Bank loans
  • Trade licenses
  • Building approvals
  • B-Khata properties, on the other hand, are properties that:
  • Exist in unauthorized or unapproved layouts.
  • Have deviations from approved plans.
  • Are recorded only for tax collection purposes.
  • Do not enjoy full legal recognition.

Many B-Khata properties came into existence due to rapid urbanization, lack of timely approvals, and administrative gaps.

 

The Government’s Decision: Key Highlights

The Karnataka government has decided to extend relief to owners of B-Khata properties, including those located in illegal or unauthorized layouts, subject to certain conditions.

Key points of the announcement include:

  • The scheme will apply to properties under urban local bodies across Karnataka.
  • It is expected to benefit around 10 lakh property owners.
  • The government will regularise sites by collecting a 5% levy on the guidance value of the property.
  • The scheme does not include regularization of buildings that violate building bylaws.
  • A-Khata will be issued only after obtaining approval from planning authorities.

 

Scope of the Scheme:

According to Law and Parliamentary Affairs Minister H.K.Patil, the scheme will be extended to B-Khata properties, including:

  • Residential sites
  • Buildings
  • Apartments
  • Flats

However, properties that have not received approval from the respective planning authorities will not automatically qualify. Owners must first obtain the required approvals to be considered for A-Khata issuance.

Conditions and Compliance Rrequirements

The government had made it clear that this move is not a blanket regularization. Certain safeguards have been introduced to prevent misuse and to ensure urban planning discipline.

Important conditions include:

  • Approval from planning authorities is mandatory.
  • Properties with major deviations from sanctioned building plans will not be regularized.
  • While regularization is permitted, penalties may also be imposed.
  • The scheme aims to restrict further unauthorised developments.

As started by the minister, “If we are to regularize, we will also penalize.”

Objective of the Policy

The primary objectives behind this policy decision are:

  • To bring existing unauthorized layouts under the legal framework.
  • To protect innocent purchasers who bought properties in good faith.
  • To crub the sale of properties in unapproved layouts.
  • To ensure planned urban development.
  • To enhance transparency and governance in property records.

Thai approach balances public interest with the need to maintain urban planning standards.

Financial Implications

While the scheme is expected to benefit a large number of property owners, the exact quantum of revenue to be collected by the state government has not yet been estimated.

The levy of 5% of the guidance value is intended to act as both:

  • A regularisation fee, and
  • A deterrent against future violations.

 

Impact on Property Owners

For B-Khata property owners, this announcement brings several potential benefits:

  • Increased legal recognition of property
  • Improved market value
  • Eligibility for bank loans and financial services
  • Ease in property transactions such as sale, inheritance, and mortgage

However, owners must be prepared  to:

  • Complete compliance formalities
  • Pay regularisation charges and penalties
  • Rectify deviations, where required

 

Conclusion:

The Karnataka government’s decision to offer A-Khata status to eligible B-Khata properties is a landmark reform in urban property governance. While it provides much-needed relief to lakhs of property owners, it also reinforces the importance of compliance with planning laws.

By combining regularization with penalties and approvals, the policy seeks to strike a balance between urban development, public interest, and legal accountability. Property owners are advised to stay informed, consult legal experts, and ensure full compliance with to take advantage of this opportunity.

 

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