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In Bengaluru’s real estate landscape, the terms Khata A and Khata B frequently surface during property transactions, tax payments, and home loan applications. Understanding the difference between Khata A and Khata B is vital for every buyer or property owner in the city. These classifications are more than administrative labels; they significantly impact legal standing, resale value, and financial eligibility.
This guide explores the key distinctions between the two and helps you make informed decisions with complete clarity.
A Khata is an official property account maintained by the Bruhat Bengaluru Mahanagara Palike (BBMP). It serves as evidence that a particular property exists in municipal records and is liable to pay property tax. The document typically includes the property owner's name, location, dimensions, and tax assessment.
Having a Khata is essential for:
Paying property tax
Applying for building permits
Seeking utility connections
Khata A refers to properties that are:
Fully legal
Built as per BBMP’s building by-laws
Approved by relevant civic authorities
Such properties are listed in the BBMP's official registry and are eligible for all civic amenities and legal certifications. Owners of A Khata properties can apply for construction permissions, loans, and even commercial licences. In short, Khata A represents full legal compliance.
Khata B is issued to properties that fall short of BBMP’s legal criteria, such as:
Layouts formed without proper approvals
Constructions on revenue land
Properties outside the sanctioned building plans
These properties are unauthorised but recognised for tax collection purposes. While owners can pay taxes using Khata B, they cannot secure building licences or bank loans. This makes Khata B a temporary recognition, not a legal endorsement.
Here’s a comparison table to simplify the Khata A vs Khata B distinction:
Feature |
Khata A |
Khata B |
|---|---|---|
Legal Status |
Fully legal and compliant |
Semi-legal, pending regularisation |
Issued By |
BBMP |
BBMP (for tax collection only) |
Eligibility for Loans |
Yes |
No |
Building Plan Approval |
Allowed |
Not permitted |
Property Tax Payment |
Yes |
Yes |
Eligibility for Conversion |
Not applicable |
Possible through Akrama-Sakrama scheme |
BBMP Recognition |
Full recognition |
Limited, for revenue only |
Disclaimer: The above table is indicative based on BBMP policies as of the latest available updates. Rules may change subject to government notifications.
Owning a B Khata property can pose serious limitations:
Most banks and NBFCs refuse to finance B Khata properties.
You cannot legally renovate or extend the property.
Buyers often hesitate due to its unclear legal standing.
In the event of civic action, these properties could face scrutiny.
Although such properties might appear more affordable, the long-term risks outweigh the initial cost savings.
Yes, Khata B can be converted to Khata A, but only under specific conditions. The BBMP allows conversion through the Akrama-Sakrama scheme—designed to regularise unauthorised constructions. However, the scheme's legal validity has been challenged, and implementation remains inconsistent.
Prerequisites for Conversion:
Full payment of pending property taxes
Penalty charges as assessed by BBMP
Submission of ownership documents and layout approvals
Clearance of encroachments, if any
Until formalised, B Khata properties remain in legal limbo, awaiting regularisation.
Banks and housing finance companies typically require Khata A as proof of legal ownership. Since Khata A signifies full compliance, lenders are assured of the property’s authenticity and civic legitimacy.
Required for title clearance
Mandatory for loan documentation
Accepted by nationalised and private banks
Serves as legal assurance for mortgage
On the other hand, Khata B is generally not accepted, which is a crucial factor when considering future financing or resale.
As per BBMP Khata details, only properties within BBMP limits are eligible for Khata certification. The municipal authority issues Khata documents based on the following:
Approval from Bangalore Development Authority (BDA) or Bangalore Metropolitan Region Development Authority (BMRDA)
Payment of Betterment Charges
Adherence to zonal regulations
Illegal layouts or unapproved buildings are not granted Khata A unless regularised. Always verify BBMP Khata details before finalising a property deal.
If you're purchasing a new property, follow this Khata transfer process:
Visit the nearest BBMP office or apply online via the Sakala portal.
Submit:
Sale deed copy
Encumbrance certificate
Tax paid receipts
Approved plan
ID and address proof
Pay Khata transfer fees (usually 2% of the property value)
Track the status via BBMP's official site
Processing time ranges from 30 to 90 days, depending on document verification.
Between Khata A and Khata B, always prefer Khata A. It ensures full legal protection, better resale opportunities, and eligibility for government utilities and financial services.
Though Khata B properties may seem budget-friendly, they come with unresolved legal complexities and long-term challenges. Unless you’re willing to undergo the Khata transfer process and possible regularisation, avoid B Khata purchases.
The difference between Khata A and Khata B lies at the intersection of legality, convenience, and financial credibility. While Khata A provides you with seamless civic and financial services, Khata B often locks you out of key entitlements, making it a risky choice for end-users and investors alike. Before signing a property deal in Bengaluru, scrutinise the Khata status—because in this case, the letter truly makes all the difference.
A Khata represents fully legal and BBMP-approved properties, while B Khata refers to unauthorised constructions recognised for tax collection only, without legal approval.
Yes, B Khata properties can be converted through BBMP’s regularisation schemes like Akrama-Sakrama, provided the property meets required conditions and penalties are paid.
No, banks typically do not approve home loans for B Khata properties as they lack full legal standing and civic permissions.
B Khata owners face legal uncertainty, no building approvals, risk of penalties, and reduced access to government infrastructure and banking services.
Khata A properties are easier to sell or transfer, attract higher resale value, and are preferred by buyers, while B Khata properties often face legal hurdles and buyer reluctance.
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