How auto-conversion could rewrite property ownership in Bengaluru

While experts welcome the transparency and efficiency, they caution against misuse and stress adherence to the Revised Master Plan 2015 regulations.

Recently, the state Revenue Minister Krishna Byre Gowda’s office issued a note stating that the government has done away with the requirement for separate land conversion in areas covered under the published master plan within the Greater Bengaluru Authority (GBA) limits.

“Landowners who are developers may now directly apply for plan approval pursuant to the Master Plan, and land conversion will be carried out automatically as part of the plan approval process,” said the note.

It said that under the master plan provisions, conversion from B Khatha to A Khatha for existing individual property owners is now permitted by law, providing significant relief to lakhs of GBA B Khatha site owners.

The step was projected to facilitate governance and compliance. “To promote planned development and improve ease of doing business, the government has introduced auto-conversion in master plan areas. Earlier, even lands falling within the master plan required separate conversion, despite the concept of “deemed conversion.” 

“This process typically took four to six months and often resulted in delays, harassment, corruption, and increased costs attributable to intermediaries,” the note said.

These inefficiencies ultimately burdened site buyers and brought disrepute to government institutions, particularly the Revenue Department, according to the note. “With the rollout of auto-conversion in GBA, the Revenue Department has taken a decisive step to eliminate delays and harassment, reduce corruption and discretion, cut development costs and timelines and promote transparent, time-bound processes,” it explains.

The note states that the “auto-conversion is a bold and transformative reform that simplifies one of the most complex and corruption-prone processes in land development,” addressing the problem at the source.

B Khata angle

Officials say this reform facilitates faster, lawful, and more affordable land development, benefiting both developers and public site purchasers. They say the auto-conversion provision provides a legal framework to convert B Khatha properties into A Khatha, helping lakhs of property owners who purchased unauthorised sites in the past. 

An A Khatha in Bengaluru serves as the property’s seal of authenticity, proving legal ownership and enabling access to bank loans, especially from public banks such as the State Bank of India. It increases property values and simplifies transactions and approvals, officials say. The Revenue Department also plans to integrate auto-conversion with E-Khatha and digitised land records in order to reduce litigation and provide certainty in property ownership.

This is not the first time the government has taken steps to help B Khata property owners. The state cabinet recently approved a reform allowing B-Khata properties that came into existence before September 30, 2024, especially those inunauthorised layouts, to be converted to the full legal status of A-Khata.

B Khata made life difficult for property owners because it was not a genuine Khata certificate but merely an entry in the “B register” for tax collection. The recent campaign to obtain E Khata was applicable to B Khata properties as well, and has been made mandatory to obtain A Khata for the same properties.

With all the reforms, some experts believe it will be difficult to identify any illegality in property going forward, and those who committed it may also get away.

‘Not a new step’

Vasanth Veerasagara, a resident of North Bengaluru and an active petitioner in a few cases, notes that court rulings state that land conversion is not required when the land falls within the master plan area. He cites Shrishail v. The State of Karnataka, a case from Bailahongal, Belagavi District, to support this point.

The land was previously used for agricultural purposes. The landowner obtained a conversion order in 2016 for non-agricultural, commercial use of the land for a petrol pump. He also set up a petrol pump on part of the land and later applied to the Town Municipal Council (TMC), Bailhongal, for permission to use the remaining land for commercial buildings (beyond the petrol pump).

The TMC refused, stating that the earlier conversion was limited to “petrol bunk” purposes and would not permit broader commercial use. In this case, the Karnataka High Court considered whether a municipal authority could restrict the use of land that had already been converted from agricultural to non-agricultural purposes. 

The High Court held that once land falls within municipal limits, the strict requirement of conversion under the Karnataka Land Revenue Act loses significance because such land is treated as non-agricultural for municipal purposes.

The court further observed that when land has already been converted for commercial use, the authority cannot narrowly confine its use to the specific description mentioned in the earlier order, especially when the land has effectively lost its agricultural character.

Finding the municipal council’s restriction unjustified, the Court quashed its endorsement and directed it to reconsider the petitioner’s application for building permission in accordance with the law.

Thus, the Revenue Department’s rule has already been applicable outside the GBA in various cities where the land falls within municipal limits or has a master plan that stipulates land uses. In Bengaluru, various private layouts are regularised by paying the DC conversion fee. There is no clarity on whether the fee still needs to be paid, but many steps required for conversion have been eliminated under the new rule. 

The ruling also shows that a municipal authority cannot enforce narrow-use restrictions inconsistent with conversion status and municipal law.

Citizens welcome move, but with caution

“On the face of it, this is a welcome move. I hope the notification doesn’t result in a stealth Akrama Sakrama, meaning that in the process of automatic conversion, hopefully illegalities won’t be regularised,” says Nitin Seshadri, a Koramangala resident who has been active in cases involving master plan violations.

R Rajagopalan, Convenor of Bengaluru Coalition, says: “Prima facie, from an ease of doing business point of view, it’s a long-pending implementation of existing laws, an administrative correction that ensures ‘deemed conversions’ don’t suffer in red tape.”

“However, the current administration seems to favour its real estate well-wishers and has a tendency to promote less rigour in enforcement. It’s essential that the CDP and RMP 2015 guidelines be reviewed prior to any such conversion to ensure land use complies with the law,” he adds.

“Any illegal or revenue land plots (B Khata) must pay the fee, which should ideally be escrowed for proper facilities, civic amenities, and the development of the layout,” he feels.

Applicability of the master plan

Questions have arisen regarding the applicability of the RMP-2015 to current cases, as it was intended to be replaced by a new plan that was never adopted by the government. However, legal experts clarify that RMP-2015 was prepared under the Karnataka Town and Country Planning (KTCP) Act, 1961, and is a statutory instrument governing land use and zoning in the Bengaluru metropolitan area.

An advocate who has led cases related to master plans says that RMP 2015 remains applicable to zoning rules and to the government’s decision of auto-conversion.

Courts have repeatedly held that the zonal regulations and land-use classifications mentioned in the master plans are binding on local authorities (BBMP/BDA) in decisions on building plan approvals and related permissions. Experts explain that, since the government withdrew the proposed new plan, RMP-2031, it does not supersede RMP-2015.