'B' to 'A' khata switch scheme to benefit 7.5L property owners in Bengaluru

Bengaluru: Deputy Chief Minister DK Shivakumar on Wednesday launched a new scheme that allows ‘B’ khata properties in Bengaluru to obtain an ‘A’ khata by paying 5% of the property’s guidance value.

The move is expected to benefit over 7.5 lakh properties and generate substantial revenue for the government.

While the Bengaluru Development Minister described the scheme — a long-awaited one — as “a Deepavali gift”, the conversion costs could be significant for property owners. 

For instance, an individual owning a 30x40 sqft plot — where the guidance value is Rs 7,000 per sqft — will have to pay Rs 4.2 lakh to obtain an ‘A’ khata.

For now, the scheme applies to vacant plots and plots with a single-unit building (single ownership). It does not benefit individual flat owners who hold a ‘B’ khata or those residing in multi-storied apartment units.

Even if 30% of the 7.5 lakh ‘B’ khata properties opt for the scheme, the government stands to earn additional revenue of nearly Rs 10,000 crore. “This is a historic decision,” said Shivakumar.

“The application window is open for 100 days from November 1. Not just 7.5 lakh, but we expect as many as 15 lakh properties to benefit from this, as many are yet to come under the tax net,” he said. Citizens can apply for ‘A’ khata online, or at two help desks which will be set up in each corporation office. Bangalore One centres will also provide assistance.

In addition to the 5% conversion fee, the government has decided to collect a registration fee of Rs 500 from each applicant. Once registered, civic officials will visit the site to verify the property’s existence and road access.

He clarified the scheme does not regularise any unauthorised construction on such properties. But, obtaining ‘A’ khata will enable owners to apply for building plans and access bank loans easily.

When asked about the expected revenue, he said the corporations will know once property registrations are complete.

A senior BBMP official said the revenue collected will be used to create parks and additional infrastructure in areas with limited open spaces. “We fixed 5% of the guidance value for a property that should have relinquished 15% of the area had the norms been followed. This is an attractive offer. Converting to ‘A’ khata will also increase property value,” he said.

Not everyone agrees. A builder who has undertaken small-scale residential projects said 5% of the guidance value was too high. He said an ‘A’ khata is mainly required for getting sanctioned building plans. “The problem of obtaining loans is largely resolved due to competition among financial institutions,” he said, adding the demand may be subdued as the government has already exempted 1,200 sqft plots from the occupancy certificate requirement.

Though property owners may have to pay a premium to upgrade their status to ‘A’ khata, their surroundings may not improve.