What is B Khata Property in Karnataka: Complete Legal Guide

Introduction

When buying or selling property in Bengaluru or other parts of Karnataka, one of the first terms you will encounter is the distinction between A Khata and B Khata. These categories were introduced by the Bruhat Bengaluru Mahanagara Palike (BBMP) to separate properties that fully comply with municipal rules from those that do not.

Understanding what B Khata means, the risks involved, and how conversion works is essential for anyone planning to invest in or sell such property. At Lawtendo, we provide professional legal assistance to verify documents, advise on risks, and guide owners through the conversion process where possible.

Definition and Origin of B Khata

A B Khata property is one listed in a secondary register maintained by BBMP or municipal authorities. While these properties are taxed by the corporation, they are not recognized as fully legal for all purposes. The classification was introduced to bring revenue from buildings and plots that did not meet zoning regulations, lacked proper approvals, or were constructed in unregularised layouts.

Municipal authorities use this category to collect tax, but entry in the B register does not confer legal ownership status equivalent to an A Khata.

Key Characteristics of B Khata Properties

• Ownership details are recorded only in the B register, not the primary register maintained for compliant properties.

• Tax can be paid regularly, but such payments do not make the property fully legal.

• Properties usually lack one or more approvals such as layout sanction, building plan approval, or occupancy certificate.

• Many banks and financial institutions refuse loans against such properties.

• Conversion into A Khata is possible but requires fulfilling legal requirements and payment of dues.

Risks Involved in Owning or Buying B Khata

While the low purchase price may attract buyers, the risks are significant.

• Restricted financing: Most banks avoid lending against such properties, making it difficult to secure home loans.

• Sale complications: Future resale is harder, with limited buyer interest.

• Construction limits: Building approvals and modifications are generally not sanctioned.

• Legal uncertainty: Since these properties are not fully regularised, buyers may face demolition or penalties if municipal enforcement increases.

Lawtendo strongly recommends conducting a legal due diligence review before committing to purchase. Our lawyers check approvals, survey numbers, and encumbrance certificates to identify red flags.

A Khata vs B Khata: Comparison Table

This comparison highlights why buyers prefer A Khata and why sellers of B Khata properties often face lower valuations.

Recent Policy Updates

In July 2025, the Karnataka cabinet announced measures to regularise several categories of B Khata properties, particularly those in Bengaluru. While the details are still being implemented, the move is expected to bring relief to many owners by providing a pathway to legalisation.

Including this update in your decision-making is important. Lawtendo tracks such policy changes and advises clients on eligibility for regularisation schemes.

Conversion of B Khata to A Khata: Why It Matters

Conversion is the process of upgrading a property from the secondary register into the primary register. This step makes the property fully legal, improves resale value, and opens access to financing.

The process typically involves:

1. Ensuring property tax dues are cleared.

2. Submitting applications through BBMP or Seva Sindhu with supporting documents.

3. Payment of betterment charges or penalties, depending on the category of property.

4. Verification by the municipal authority.

5. Issuance of A Khata certificate once compliance is confirmed.

Owners must be prepared for variations depending on whether the property is in an approved layout, an apartment, or a revenue site. 

Pro Tip: Stay updated on the documents required for khata transfer.

Conversion Costs and Charges

Upgrading a property from the B register to the A register involves mandatory fees and penalties. The exact figures vary depending on the property size, location, and the type of authority managing the area.

Typical charges include:

• Application and processing fees payable to BBMP or Seva Sindhu

• Betterment charges, usually calculated per square foot of property area

• Penalty amounts in cases where construction has deviated from the approved plan

• Document retrieval costs if certified copies of sale deeds or encumbrance certificates are required

For example, a 1,000 square foot residential plot may attract a betterment charge ranging from a few hundred to a few thousand rupees per square foot, depending on the zone. Owners of larger commercial properties face higher slabs.

Lawtendo assists in preparing cost estimates so that clients know the financial impact before initiating the conversion process.

Bank Loan Eligibility

One of the most practical concerns with owning such property is access to finance. Most leading public and private banks in India are reluctant to provide loans for properties listed only in the B register. The reasons are simple: lack of full legal recognition, unclear ownership risks, and the possibility of demolition or penalties.

Some non-banking finance companies or cooperative banks may consider lending, but usually at higher interest rates and lower loan-to-value ratios. Buyers are advised to secure finance approvals before entering into an agreement with the seller.

By converting into the A register, loan eligibility improves significantly, enabling owners to approach nationalised banks for housing loans, construction finance, and mortgage-backed lending.

District-Level and Authority-Specific Differences

While Bengaluru falls under BBMP jurisdiction, other municipalities and development authorities in Karnataka follow slightly different rules for classification and conversion.

• In BDA-allotted layouts, additional documents like allotment letters, possession certificates, and release orders are often required.

• In smaller municipal corporations, the process may be routed through Seva Sindhu, with variations in fees and document formats.

• Rural or gramathana properties often require conversion certificates, survey sketches, and RTC extracts before they can even be considered for upgrade.

Applicants must therefore check the specific requirements of their district or authority. Lawtendo maintains updated compliance checklists tailored for each local body, reducing the chance of rejection.

Property-Type Nuances

Different property categories bring additional compliance needs during conversion.

• Apartments and flats: An occupancy certificate and building plan approval are usually required. Absence of these documents delays the conversion process.

• Commercial spaces: Zoning approvals and trade licenses may be checked before conversion is approved.

• Plots in private layouts: Release orders from the development authority and layout plan approvals are often mandatory.

• Revenue sites: Conversion from agricultural to non-agricultural status must be completed first, supported by the relevant order from the Deputy Commissioner.

Lawtendo verifies these requirements for each client and guides them through obtaining missing approvals before filing for conversion.

Legal Risks and Buyer Checklist

Purchasing a property listed only in the B register carries higher legal risks. Prospective buyers should check:

• Whether the property has an encumbrance certificate covering the entire period of ownership

• If building approvals or occupancy certificates exist for constructed properties

• Whether taxes have been paid consistently without gaps

• Whether the survey number or khata number matches across all documents

• If any court cases or disputes are pending against the property

Lawtendo provides a due diligence service that flags these risks and prepares a legal opinion for buyers before they commit to a transaction.

Official Resources for Verification

Applicants and buyers can cross-check requirements and updates through government platforms:

• BBMP official portal for property records and E-Aasthi services

• Seva Sindhu for applications in BDA and other municipal areas

• Karnataka government press releases for cabinet orders on regularisation and policy changes

Referencing these resources ensures decisions are based on verified information rather than market hearsay.

Downloadable Tools and Checklists

Lawtendo provides practical resources to simplify the process:

• A buyer risk checklist for those considering secondary register properties

• A cost calculator template that estimates conversion expenses based on property size and location

• Sample sale agreement clauses that protect buyers against undisclosed legal risks

• Templates for affidavits, No Objection Certificates, and indemnity bonds

These resources can be used directly or adapted to suit specific property cases.

Case Studies and Practical Insights

Case 1: Conversion before resale
A property owner in East Bengaluru successfully upgraded their plot by paying betterment charges and producing an occupancy certificate. The conversion allowed them to secure a buyer quickly at a higher valuation.

Case 2: Loan rejection
A buyer in Mysuru applied for a housing loan but faced rejection because the property was in the B register. After legal review, they shifted to a compliant property and avoided potential financial loss.

Case 3: Family inheritance dispute
In a succession case, multiple heirs claimed rights over a property listed in the secondary register. With Lawtendo’s guidance, an affidavit and family tree certificate were prepared, leading to smooth conversion into the primary register.

These examples highlight how professional legal support prevents risks and accelerates property transactions.

Lawtendo’s Assistance with B Khata Properties

Lawtendo’s services are designed to handle end-to-end requirements:

• Title review and document verification before purchase

• Preparing cost estimates for conversion and guiding on payments

• Drafting affidavits, indemnities, and agreements to safeguard clients

• Filing conversion applications with BBMP, BDA, or Seva Sindhu

• Representing clients before municipal authorities in case of objections

• Regular updates on government policy changes and regularisation schemes

This approach ensures that property owners and buyers make decisions backed by legal certainty.

Case Studies: Real-Life Challenges with B Khata Properties in Bangalore

Case Study 1: First-Time Buyer in Electronic City
Background: Mr. Arjun Shetty, a software engineer, purchased a 30×40 site in Electronic City Phase II.
Challenge:

• Property was listed under B Khata as the layout was not fully approved.

• The bank refused to process his loan application.

• He was unaware of the legal implications of buying B Khata property.
  Lawtendo’s Solution:

• Verified records with BBMP Revenue Department.

• Explained that B Khata properties are essentially revenue sites, not fully regularized.

• Guided him through betterment charge payment and initiated conversion to A Khata.
  Outcome: Converted to A Khata in 4 months, enabling loan sanction and secure property title.

Case Study 2: NRI Investor in Sarjapur Road
Background: Ms. Priya Nandakumar, living in the US, invested in a 40×60 site on Sarjapur Road.
Challenge:

• The site was listed in B Khata records due to incomplete layout approval.

• She wanted to resell the property but buyers demanded A Khata proof.
  Lawtendo’s Solution:

• Reviewed the conversion certificate and identified missing approvals.

• Processed betterment charges and obtained necessary approvals from the Town Planning Authority.

• Coordinated conversion from B Khata to A Khata via POA held by her cousin.
  Outcome: Property upgraded to A Khata, resold within 2 months at 22% higher value.                                                                                                                                      

Case Study 3: Builder’s Apartment Project in KR Puram
Background: Bright Homes Builders constructed 80 apartments in KR Puram.
Challenge:

• Buyers discovered that flats were under B Khata as the project was on converted land without BDA approval.

• Customer registrations stalled.
  Lawtendo’s Solution:

• Coordinated with BBMP to assess regularization charges.

• Assisted builder in paying betterment charges in bulk.

• Processed conversion from B Khata to A Khata for the entire project.
  Outcome: All 80 units received A Khata in 70 days, ensuring smooth buyer registrations.

Case Study 4: Commercial Buyer in Bannerghatta Road
Background: Mr. Suresh Jain bought a commercial property to open a retail outlet.
Challenge:

• Discovered the property had only B Khata, making trade license approval impossible.

• Bank funding of ₹3.5 crore was withheld.
  Lawtendo’s Solution:

• Verified that the land conversion certificate had expired.

• Renewed agricultural-to-commercial conversion through Deputy Commissioner’s office.

• Completed regularization and submitted documents for A Khata.
  Outcome: Received A Khata certificate in 54 working days, trade license granted, and loan approved.

Case Study 5: Family Inheritance in Hebbal
Background: Mrs. Lakshmi Narayan inherited a 50×80 plot in Hebbal.
Challenge:

• Property was in B Khata list due to pending regularization.

• She wanted to construct a house but BBMP denied building plan approval.
  Lawtendo’s Solution:

• Collected all parental ownership documents.

• Initiated betterment fee payment and filed for khata transfer with updated survey details.

• Converted B Khata to A Khata through the succession process.
  Outcome: A Khata issued in 65 days, enabling approval for house construction plans.

Experienced Property Advocates for B Khata Legal Guidance

Adv. Pradeep Rao – B Khata Regularisation Expert
Specialist in helping property owners convert B Khata to A Khata through BBMP procedures and betterment charges. Strong track record in North Bangalore. 📞 +91 96253 56806

Adv. Sneha Kulkarni – Loan & Registration Advisory for B Khata
Guides clients on loan eligibility and property registration issues arising from B Khata ownership. Known for resolving banking compliance hurdles. 📞 +91 96253 56806

Adv. Mahesh R – B Khata Dispute Resolution Specialist
Focus on disputes involving B Khata properties, including title verification and documentation mismatches with revenue records. 📞 +91 96253 56806

Adv. Anjali Menon – Legal Compliance & Conversion Advisor
Expert in navigating BBMP approvals and compliance checks for B Khata properties, assisting with layout and revenue site regularisations. 📞 +91 96253 56806

Adv. Rakesh Shetty – Property Buyer Protection Lawyer
Advises first-time buyers on risks of purchasing B Khata properties, offering due diligence and legal scrutiny services before transactions. 📞 +91 96253 56806

NRI Challenges in Understanding and Buying B Khata Properties

B Khata properties are common in Bangalore, but they carry legal and financial limitations. For NRIs, the risk is higher because transactions often happen remotely and sellers may misrepresent the property’s status.

Common NRI Challenges:

• Legal Ambiguity: B Khata properties are considered irregular and not fully recognized by BBMP for all purposes.

• Loan Ineligibility: Most banks do not sanction loans against B Khata properties, restricting NRI financing options.

• Conversion Uncertainty: Converting from B Khata to A Khata requires betterment charges and approvals, which are difficult to coordinate from overseas.

• Risk of Litigation: B Khata properties may face demolition or penalties if not regularized.

• Resale Complications: Reselling a B Khata property is challenging due to buyer reluctance and lack of clear documentation.

Lawtendo’s Comprehensive NRI Legal Services for B Khata Properties

1. Legal Due Diligence
   • Full verification of title, approvals, and Khata classification.

   • Identifying risks such as unauthorized layouts or pending regularization.

2. Loan and Financing Guidance
   • Advisory on banks that may consider limited financing.

   • Preparing alternative documentation for NRI investment structures.

3. Conversion Assistance (B Khata → A Khata)
   • Filing for regularization and betterment charges on behalf of the NRI.

   • Coordinating with municipal officers to ensure compliance.

4. Power of Attorney Execution
   • Drafting and attesting PoA for document submission and conversion processes.

   • Embassy assistance for remote execution.

5. Exit Strategy Planning
   • Structuring property documentation for smoother resale.

   • Providing legal certification for buyers to improve trust in resale transactions.

Step-by-Step NRI Process for B Khata Properties

Phase 1: Property Verification (10–15 days)

• Collect sale deeds, EC, and tax paid receipts.

• Confirm if property is listed under B Khata.

• Assess risks of irregularity.

Phase 2: Conversion Feasibility (15–20 days)

• Calculate betterment charges.

• Identify approvals needed for conversion.

• Prepare PoA for execution.

Phase 3: Regularization & Documentation (30–40 days)

• File application for conversion to A Khata.

• Pay applicable charges through local representatives.

• Coordinate with BBMP officers.

Phase 4: Delivery & Future Proofing (7–10 days)

• Obtain an updated Khata certificate if converted.

• Share certified documents digitally and by courier.

• Update records for resale or loan eligibility.

Frequently Asked Questions

Can properties listed in the B register be sold?
Yes, but resale is often difficult, with lower valuations and limited buyer interest.

Is conversion always possible?
Conversion is possible if the property meets zoning and building compliance requirements and betterment charges are paid. Some irregular properties cannot be upgraded.

Do banks ever provide loans for such properties?
Most major banks avoid them. Some cooperative banks or NBFCs may lend, but usually with lower loan amounts and higher interest.

What documents are required for conversion?
Common requirements include the sale deed, encumbrance certificate, latest tax receipt, building approvals, occupancy certificate, and identity proofs.

How long does conversion take?
The timeline ranges from a few weeks to several months, depending on completeness of documents and municipal workload.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

Conclusion

Properties listed in the secondary register continue to exist in large numbers across Karnataka. While they enable owners to pay taxes, they carry significant legal and financial risks. Conversion into the primary register remains the only permanent solution to secure ownership, enable bank loans, and improve resale value.

Lawtendo provides specialised services to help clients evaluate, regularise, and convert such properties. With legal support and proper documentation, property owners can protect their investments and buyers can make informed decisions.

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