The Karnataka government has announced a major relief for Bengaluru property owners by significantly reducing the B-Khata to A-Khata conversion fee under a newly relaunched regularisation drive. The conversion charge has now been cut from 5% to 2% of the property’s guidance value.
Deputy Chief Minister D. K. Shivakumar said the move is expected to benefit nearly 7 lakh B-Khata property owners across Bengaluru. The new one-time settlement (OTS) scheme will begin from May 16 and remain open for around 100 days.
What Is The Difference Between A-Khata And B-Khata?
In Bengaluru’s property system:
- A-Khata properties are fully legal and compliant with civic regulations
- B-Khata properties are semi-legal or non-compliant properties listed separately by municipal authorities
B-Khata properties often face:
- Difficulty getting bank loans
- Problems with resale
- Delays in building approvals
- Limited legal clarity
Converting to A-Khata significantly improves a property’s legal standing and market value.
Why The Earlier Scheme Failed
The Karnataka government had launched a similar conversion drive in late 2025.
However:
- Only around 11,000 applications were received
- Just 7,000 properties were converted successfully out of nearly 7 lakh eligible properties
Officials admitted the biggest obstacle was the high conversion charge of 5% of the guidance value, which many middle-class property owners found too expensive.
The new 2% rate effectively reduces conversion costs by nearly 60%, making regularisation far more affordable.
Karnataka’s ‘Bhu Guarantee’ Plan
The new conversion drive is part of Karnataka’s broader “Bhu Guarantee” initiative aimed at:
- Digitising property records
- Expanding e-Khata coverage
- Reducing property disputes
- Increasing tax compliance
- Bringing unauthorized properties into the formal system
According to officials:
- Around 23 lakh property records have already been digitised
- More than 7,000 manual registers were scanned
- GIS mapping and drone surveys are being used to improve transparency
The government also plans special “e-Khata Open House” camps every Saturday across 52 locations in Bengaluru to help residents complete applications and resolve issues.
Why This Matters For Property Owners
A successful A-Khata conversion can provide major benefits including:
- Easier home loan approvals
- Better resale opportunities
- Eligibility for building permissions
- Improved legal ownership status
- Access to occupancy certificates and civic services
For Bengaluru’s real estate market, the move could:
- Increase property transaction activity
- Improve municipal tax collections
- Formalize thousands of semi-legal properties
- Reduce litigation around documentation issues
Challenges Still Remain
Despite the fee cut, experts say several hurdles still exist:
- Missing property documents
- Zoning violations
- Road access disputes
- Pending tax dues
- Layout approval issues
Previous data showed that approval rates remained low because many applications failed scrutiny due to incomplete documentation and compliance problems.
Bigger Shift In Bengaluru’s Property System
The relaunch reflects Karnataka’s larger push toward digitised urban property governance.
Recent reforms include:
- Auto-conversion policies for land use
- Expansion of B-to-A Khata conversion across Karnataka
- Mandatory e-Khata systems
- GIS-linked property databases
For lakhs of Bengaluru homeowners, however, the immediate takeaway is simple:
The cost of turning semi-legal B-Khata properties into fully recognised A-Khata assets has become significantly cheaper — and many may now finally move forward with regularisation.
