A Khata or B Khata in Bangalore: What It Means for Loans, Building and Resale
Picture two flats priced alike on one road in Bangalore. One owner can raise a bank loan against hers and sell to anyone. The other cannot, because his property is filed in a different tax register. That register is the khata, and this article explains how the two kinds work, what the state charges to move from the weaker one to the stronger, and what a buyer should verify first.
The Document Behind the Label
Each property in the city has a khata kept by the local corporation. It names the owner, gives the extent and the address, and shows the property tax levied. It is a municipal account and not evidence of title, which comes only from registered deeds.
The corporations now do the civic work once handled by BBMP. A change effective 2 September 2025 placed five of them within the Greater Bengaluru Authority (GBA) structure. Khatas are now issued digitally on the e-Aasthi portal, and the final e-khata is needed to register a sale in the city.
Where the Line Falls
Property in the first register, the A khata, meets all municipal requirements. The land has a residential conversion, the plan is sanctioned and the taxes are paid up. The second register, the B khata, exists to collect tax from property that lacks one of these.
The typical B khata is a plot in a layout nobody approved, a revenue site never converted from farm use, or a building raised with no sanction from the corporation. Tax paid on such property does not legalise it.
| Question | A khata | B khata |
|---|---|---|
| What the entry says | Approvals complete | Something is missing |
| Bank loan | Yes, after the legal scrutiny | Usually no; a handful of lenders at a premium |
| Permission to build | Plan can be sanctioned | Refused until regularised |
| Who buys later | Almost anyone | Mainly cash buyers |
| Price | Full market value | Discounted, minus conversion still owed |
The Loan Problem
Banks lend against what they can auction. Their lawyers therefore insist on a full set of approvals, and nearly every large public and private bank rejects a B khata application. Specialist housing lenders and small private ones do make such loans, at steeper interest and for a lower slice of the price.
In practice the buyer brings more cash and pays more interest, and later moving the loan to a cheaper bank is rarely possible. Get the bank's approval of the papers in writing before paying a token. The EMI calculator will show what a few extra interest points do to the monthly outgo.
Why Building Is Blocked
Sanctioned plans are issued only where papers are in order. Whoever builds there is building unsanctioned, and the building cannot obtain an occupancy certificate. Connections for water, sewerage and electricity can then be affected.
The bar stays with the land through every sale. A buyer wanting another storey, or a rebuild a decade on, will meet the same refusal. That is the main reason such sites cost less than neighbouring ones in the A register.
Digital Records Do Not Upgrade Anything
Moving to e-khata changed the format only. The printout lists the owner, the extent, the property ID and the register. A property in the B register keeps that category in the new system.
What improved is transparency: the register is visible at a glance. Compare the name and dimensions with the sale deed word by word, and ask the seller to correct any difference before completion, not after.
Paying to Move Up
The state lets owners shift from the B to the A register by paying a fee set against the property's guidance value. The ordinary fee is 5%. A hundred-day campaign opened on 16 May 2026 and charged only 2%, and it ended on 23 August 2026.
Only properties recorded as B khata by 30 September 2024 are eligible. Take Rs. 60 Lakhs as the guidance value: the full fee is Rs. 3 Lakhs and the campaign fee was Rs. 1.2 Lakhs. Encroached government land and disputed property in court are excluded.
A buyer should not take a verbal assurance of conversion. Wait for the finished job: the fee receipt, and a fresh A khata in the seller's name, ahead of the deed. If the seller cannot hold on, lower the price for the fee and for the risk that the application is rejected.
Panchayat Areas and Approved Layouts
These labels apply only inside the city corporations. In a village panchayat area the record is the e-Swathu document, and the complete set there is Form 9 plus Form 11A. A layout carved by BDA or BMRDA should show that body's approval, which the layout map and release order confirm.
Everywhere in and around Bangalore the logic holds: conversion order plus approved plan, and then the tax record. A tax receipt alone proves only that someone paid.
A Short List for the Week Before Booking
Confirming the register takes minutes. Run through these before any advance.
- Obtain the latest e-khata and note the register printed on it.
- Check that the owner, the property ID and the extent agree with the deed of sale.
- Ask for the conversion order, plus the approved layout or building plan.
- Read recent tax receipts for arrears.
- Get an encumbrance certificate for as many years as a lender would want.
- Let a bank or lawyer examine the papers before the sale agreement is signed.
- For a B khata property, demand the fee receipt and a fresh A khata, not a letter of intent.
Legal title checking costs far less than a mistake on a home. For homes with clean documents, get in touch with the team.
