You found the property. The price is right. The location works. The owner shows you the property tax receipts and says, “It’s all clean ,see, I pay tax to BBMP every year.
Then your lawyer asks one question: “Is it A Khata or B Khata?”
The answer decides whether you can take a home loan, build above the existing structure, sell easily in five years, or end up holding a property the government technically classifies as unauthorised. In Bengaluru alone, there are roughly 7.5 lakh B Khata properties ,and as of November 2025, the state has finally opened a legal pathway to convert them, with conditions.
This guide explains the real difference between A Khata and B Khata in 2026, what changed with the new conversion scheme, and what every Karnataka property buyer needs to verify before signing anything.
What Is a Khata in Bangalore?
In Kannada, khata literally means “account.” In Bengaluru’s property system, the Khata is a legal document issued by the Bruhat Bengaluru Mahanagara Palike (BBMP) that records:
- The property owner’s name
- Property size, location, and identification number (PID)
- Built-up area and usage classification
- Property tax assessment
Think of the Khata as the property’s identity card at the municipal level. It is the basis on which BBMP assesses and collects property tax, and it is the document banks, building plan approval offices, and future buyers will demand to see.
One critical point upfront: a Khata is not a title deed. Your sale deed proves ownership. The Khata only proves municipal recognition for tax and civic purposes. But without the Khata, that municipal recognition is missing ,and that’s where buyers get into trouble.
Why Are There Two Types of Khata?
The A Khata and B Khata classification emerged in 2007 when BBMP was formed by merging the older Bangalore Mahanagara Palike with 7 surrounding municipal councils and over 110 villages. Many properties in these newly absorbed areas lacked DC conversion certificates, building plan approvals, or compliance with municipal bylaws ,but they existed, owners lived in them, and the city needed to collect tax.
The solution was a two-register system:
- A Register ,for fully compliant, fully legal properties
- B Register ,a separate list for properties with compliance issues, allowing BBMP to still collect taxes
The B Register entries became colloquially known as “B Khata,” though technically B Khata is not a Khata at all ,it is a temporary tax-collection record. The legal basis for B Khata came later, in Section 108A of the Karnataka Municipal Corporations (Amendment) Act, 2009, which gave BBMP the authority to assess tax on “unauthorised” properties.
A Khata vs B Khata: The Core Difference
| Aspect | A Khata | B Khata |
|---|---|---|
| Legal status | Fully legal, fully compliant | Tax record only; treated as unauthorised |
| Title deed validity | Title is clean | Title may have compliance gaps |
| Home loans | Approved by all banks | Mostly rejected by major banks |
| Building plan approval | Granted | Generally denied |
| Trade license | Eligible | Not eligible |
| Property tax rate | Standard BBMP rate | Higher rate (penalty-loaded) |
| Resale ease | Smooth, high buyer pool | Complex, limited buyers |
| Future construction | Allowed with approvals | Risk of demolition notice |
| Civic services | Full eligibility | Limited |
The simple summary: an A Khata is a fully compliant property in the eyes of BBMP and Karnataka’s planning laws. A B Khata is a property that exists, pays tax, but does not meet one or more of the conditions for full legal recognition.
What Qualifies as A Khata?
To hold an A Khata, a property must satisfy a stack of compliance requirements:
- Land conversion certificate ,proof that the land has been legally converted from agricultural to non-agricultural use under Section 95 of the Karnataka Land Revenue Act, 1964
- Approved building plan ,sanctioned by BBMP or the relevant planning authority in accordance with the Revised Master Plan
- Layout approval ,for plotted developments, the layout must be approved by BDA, BMRDA, or the relevant planning body
- Compliance with setback rules, FAR, and zoning ,the structure must conform to the building bylaws applicable to that zone
- Encumbrance Certificate (EC) showing no legal dues or mortgages
- All property taxes paid up to date
An A Khata is issued under the Karnataka Municipal Corporations Act, 1976, specifically the BBMP’s power to assess and collect property tax on lawful properties.
What Makes a Property B Khata?
B Khata properties typically fall into one or more of these categories:
- Land not DC-converted ,the property sits on land still classified as agricultural in revenue records
- Unauthorised construction ,built without an approved building plan
- Deviations from sanctioned plan ,extra floors, expanded built-up area, or boundary violations beyond the approved plan
- Setback violations ,built closer to boundary lines than building bylaws permit
- Located in unapproved layouts ,revenue sites or layouts developed without BDA, BMRDA, or BBMP approval
The crucial 2014 development: in December 2014, the Karnataka High Court ruled that B Khata properties are not legal properties. They retain the obligation to pay tax but lose any presumption of legitimacy for building plans, loans, or transfer.
The Real Costs of Buying B Khata Property
Buyers sometimes consider B Khata properties because they are priced 15–30% lower than equivalent A Khata properties in the same neighbourhood. The discount is real. So are the costs:
Home loan rejections. Most public sector banks and major private banks reject home loan applications on B Khata properties outright. A handful of NBFCs and smaller lenders offer loans, but at higher interest rates and lower loan-to-value ratios. If you need a loan, B Khata typically means a 1.5–3% interest rate premium, which over a 20-year tenure costs far more than the upfront price discount.
Construction and renovation blocked. BBMP will not approve building plans for B Khata properties. Any construction is technically unauthorised and at risk of demolition notices. Even adding a floor or extending a balcony triggers compliance risk.
Demolition risk. In serious violation cases ,major encroachment, drain or buffer zone construction, gross deviation from the master plan ,BBMP and the courts have ordered demolitions. The 2024–2025 storm water drain encroachment drives in Bengaluru are recent reminders.
Resale buyer pool shrinks. Investor buyers, end-users needing loans, and most institutional buyers will not touch B Khata properties. You’re left with cash buyers willing to accept the same legal risk.
Civic service complications. Some BWSSB water connections, BESCOM commercial connections, and trade licenses become harder or impossible to obtain on B Khata properties.
Higher property tax. B Khata properties are typically assessed at a higher tax rate than equivalent A Khata properties ,the municipal way of recovering the cost of the compliance gap.
The 2014 High Court Ruling and What Changed Since
The December 2014 Karnataka High Court ruling stated that B Khata properties cannot enjoy the rights of legal properties. The court held that BBMP could collect tax from them but could not legitimise the underlying compliance violations.
This left lakhs of property owners in limbo. Successive Karnataka governments promised regularisation through the Akrama Sakrama scheme, which would allow B Khata owners to pay a regularisation fee and convert to A Khata. The Akrama Sakrama scheme was passed in 2013 and again in 2018 but has been stuck in Supreme Court litigation, with no firm implementation timeline.
In the meantime, the BBMP introduced e-Khata in 2024 as the digital, mandatory format for all khata records. Paper khatas are no longer being newly issued.
The November 2025 B Khata to A Khata Conversion Scheme
This is the development most buyers and even some property advisors haven’t fully absorbed yet.
On November 1, 2025, the Karnataka government launched a fresh framework allowing eligible B Khata properties to be converted to A Khata through the BBMP e-Khata system, subject to conditions and on payment of regularisation fees.
Key facts about the 2025 scheme:
- The framework was approved by the Karnataka Cabinet and routes conversion through the e-Khata portal under the Greater Bengaluru Authority (GBA) structure
- Roughly 7.5 lakh B Khata properties exist in Bengaluru alone, per GBA data
- Only about 2.6 lakh have been converted into e-Khata so far (the mandatory first step)
- In the scheme’s first week, only 1,169 conversion applications were filed ,a slower start than the government anticipated
- Conversion is not automatic ,each case is evaluated individually based on layout approval, records, and compliance
- The focus is regularisation, not blanket approval of all violations
- Properties in seriously illegal layouts (storm water drain encroachment, buffer zone violations, etc.) are likely to be excluded
What this means for buyers in 2026: For the first time in over a decade, there is a clear, government-backed legal pathway from B Khata to A Khata ,but it’s case-by-case, requires e-Khata conversion first, and is far from guaranteed. The low uptake suggests owners are still gathering documentation, waiting for clarity on fee structures, or facing eligibility questions.
How to Check If a Property Is A Khata or B Khata
Never trust the seller’s verbal assurance. Verify directly through these steps:
- Ask for the Khata Certificate and Khata Extract ,both should be in the current owner’s name and clearly state A Khata or B Khata classification
- Verify on the BBMP e-Aasthi portal at bbmpeaasthi.karnataka.gov.in using the PID or ePID number
- Check the property tax receipt ,the form number or assessment code often indicates classification (Form 3 for A Khata, distinct format for B Khata)
- Pull a fresh Encumbrance Certificate from the Kaveri Online portal for the last 15–30 years to verify the title chain
- Cross-check the land conversion certificate ,without DC conversion, the property cannot be A Khata, period
- Verify the building plan approval ,match the sanctioned plan to the actual structure on site
- Engage a property lawyer for any property above ₹50 lakh ,the fee is trivial compared to the risk
If the seller can’t produce the Khata Certificate, the Khata Extract, the DC conversion certificate, AND the building plan approval, treat the property as B Khata or worse until proven otherwise.
How to Convert B Khata to A Khata in 2026
The 2025 scheme has formalised the process, though the practical workflow involves multiple stages:
- Clear all property tax dues ,no pending tax, no conversion
- Convert paper khata to e-Khata via the BBMP e-Aasthi portal ,this is now the mandatory first step
- Obtain DC conversion certificate if the land was previously agricultural ,pay the prescribed land conversion fee to the Deputy Commissioner’s office under Section 95 of the Karnataka Land Revenue Act
- Pay betterment charges as assessed by BBMP for the area
- Submit the conversion application with all supporting documents ,sale deed, EC, tax receipts, building plan, DC conversion certificate, layout approval
- Pay regularisation fees as per the 2025 scheme framework
- BBMP verification ,document scrutiny, possible site inspection
- A Khata issuance after compliance is confirmed
The total cost varies dramatically based on property size, deviation extent, and zone. Budget conservatively ,for an average residential plot, the full conversion can run anywhere from a few lakhs to substantially more for properties with major deviations.
A Khata vs B Khata vs E-Khata: Clearing the Confusion
This trio confuses almost every first-time buyer. The simple breakdown:
- A Khata is a classification ,it means the property is fully legal
- B Khata is a classification ,it means the property has compliance gaps
- E-Khata is a format ,it is the digital version of the Khata record, mandatory since 2024
So e-Khata is not a third type of property. An A Khata property has an e-Khata in digital form. A B Khata property, once digitised, also has an e-Khata ,but it’s still a B Khata. The format changed; the classification did not.
The critical 2024 shift is that paper khatas are no longer being newly issued. Every property transaction now flows through the e-Aasthi digital system. If a property’s records are still in paper format, the buyer needs to push for e-Khata conversion as part of the purchase.
What This Means for Property Buyers Across Karnataka
While the A Khata vs B Khata system is specific to BBMP and Bengaluru, the underlying principle ,full legal compliance versus partial municipal recognition ,applies across Karnataka:
- Mysuru: MUDA and MCC maintain their own khata systems with similar compliance requirements
- Mangaluru, Hubballi, and other cities: Their respective city corporations follow comparable two-tier classifications
For buyers across the state, the rule is the same: verify Khata classification, DC conversion, building plan approval, and EC before committing. A property’s price discount almost always reflects a compliance gap somewhere in the chain.
Frequently Asked Questions
Is B Khata property legal?
B Khata properties are not classified as fully legal. The December 2014 Karnataka High Court ruling held that B Khata properties cannot enjoy the rights of legal properties. They retain the obligation to pay property tax, but they fail compliance checks for loans, building plans, and trade licenses. The November 2025 conversion scheme provides a pathway to legality, but conversion is case-by-case and not automatic.
Can I get a home loan on a B Khata property?
Major public sector and private banks generally reject home loans on B Khata properties. A limited set of NBFCs and smaller lenders offer loans, but at higher interest rates, lower loan-to-value ratios, and stricter conditions. The effective cost of borrowing is typically much higher than for A Khata properties.
Is e-Khata the same as A Khata?
No. E-Khata is the digital format of the Khata record, mandatory in Bengaluru since 2024. The classification ,A Khata or B Khata ,is separate. An A Khata property has an e-Khata in digital form, and a B Khata property also has an e-Khata, but the underlying compliance status determines whether it is treated as fully legal.
How much does B Khata to A Khata conversion cost in 2026?
There is no single fixed amount. Conversion costs include DC conversion fees (if applicable), betterment charges as assessed by BBMP, regularisation fees under the 2025 scheme, pending tax dues, and professional fees. For an average residential plot, the total can range from a few lakhs upward depending on property size, deviations, and zone. Each case is assessed individually.
Why does B Khata property cost less than A Khata property?
B Khata properties are typically priced 15–30% lower because of the compliance gap. The discount reflects the risks: loan rejections, construction restrictions, smaller buyer pool on resale, and demolition risk in serious violation cases. The upfront discount almost always costs more over time when factored against higher borrowing costs and lower resale price.
Can a B Khata property be sold?
Legally, yes, B Khata properties can be sold, but the buyer pool is much smaller ,primarily cash buyers and a few NBFC-financed buyers willing to accept the legal risk. Resale also typically takes longer and fetches a lower price than equivalent A Khata properties.
Is the Akrama Sakrama scheme the same as the 2025 conversion scheme?
No. Akrama Sakrama is an older regularisation framework passed in 2013 and 2018, currently pending in Supreme Court litigation. The November 2025 BBMP e-Khata-based conversion scheme was approved separately by the Karnataka Cabinet as a parallel pathway. The new scheme routes conversion through the e-Khata system under the Greater Bengaluru Authority (GBA) structure.
Should I buy a B Khata property if it’s much cheaper?
For end-users planning to live in the property long-term, with cash available and no immediate construction or resale plans, the calculation can occasionally work ,especially if the property is a strong conversion candidate under the 2025 scheme. For most buyers, especially those needing home loans, planning future construction, or thinking about resale, the additional risk and cost typically outweigh the discount. Always engage a property lawyer before deciding.
The Bottom Line for Karnataka Property Buyers
The A Khata vs B Khata distinction is the single most important compliance check you do when buying property in Bengaluru and, with regional variations, anywhere in urban Karnataka. A Khata means full legal recognition, easy loans, clean resale, and lawful construction. B Khata means a property that exists, pays tax, but carries a compliance gap that costs you in loans, construction freedom, and resale flexibility.
The November 2025 B Khata to A Khata conversion scheme has, for the first time in over a decade, opened a clear pathway to regularisation. But conversion is case-by-case, requires e-Khata conversion first, demands clear documentation, and excludes the most serious violations. Of 7.5 lakh B Khata properties in Bengaluru, only a fraction have moved through the early stages so far.
If you are buying property in 2026, the rule is simple: verify Khata classification before money changes hands. Demand the Khata Certificate, the Khata Extract, the DC conversion certificate, the approved building plan, and the latest EC. If anything is missing, treat the property as B Khata until the seller proves otherwise ,and price your offer accordingly.
A 15% discount on a non-compliant property may look attractive in May 2026. It rarely looks attractive five years later when you need a loan, want to add a floor, or try to sell.
About this guide: This article reflects A Khata, B Khata, and conversion procedures in Bengaluru and Karnataka as of May 2026, including the November 2025 GBA conversion scheme, BBMP e-Khata mandate (2024), and the December 2014 Karnataka High Court ruling on B Khata properties. Procedures, fee structures, and eligibility rules are revised periodically by the respective authorities and remain subject to ongoing court proceedings ,verify current rules at the BBMP e-Aasthi portal before filing. This guide does not constitute legal advice; consult a qualified property lawyer for transaction-specific questions.
