Part 1 of the three-part event report series on property documentation covered the legal issues related to property documentation and the due diligence that new property buyers should follow. The queries were addressed by Mithun Garehalli, an advocate specialising in property law.

Part 2 highlights Mithun’s insights into the complexities of land ownership, the importance of understanding property history, and the need for expert advice in property transactions.

Khata quagmire

What is A Khata vs B Khata issue? 

A Khata is a document used for tax assessment in Bengaluru. It includes essential details such as the property owner’s name, site area, property number, location, and address. When someone refers to the Khata, they are essentially looking at the current property owner and the tax assessment associated with the property. The Khata provides insights into ownership and property dimensions.

Here is how it works:

• If the property is within the Bruhat Bengaluru Mahanagara Palike (BBMP) jurisdiction, the Khata is issued by the BBMP
• If the property lies beyond BBMP limits, it is issued by the relevant local authority (such as the panchayat)

The distinction between A Khata and B Khata

• While there isn’t an official term called “B Khata,” it has become common parlance
• Properties that have undergone tax assessment but may not comply with all legal requirements (such as lacking proper layout plans or conversions) are sometimes registered as B Khata
• Recent judgments by the Honourable High Court of Karnataka suggest that there should be no strict distinction between A Khata and B Khata. If taxes are being collected, the property owner should receive an A Khata

Navigating property regularisation: Insights and challenges 

1. Regularisation of unapproved layouts:
   • Many people have purchased sites from developers or individuals in unapproved layouts, which lack legal documentation (such as A Khata or E Khata)
   • The government has taken steps to address this issue by considering the regularisation of such layouts through betterment charges
   • However, further orders are awaited in this regard
2. Previous efforts and legal challenges:
   • Previously, the Akrama-Sakrama subcommittee aimed to regularise unauthorised layouts Unfortunately, this attempt faced legal challenges
   • The Supreme Court stayed the regularisation process for certain buildings, leading to a halt in the initiative
3. Focus on E Khata:
   • The government has abolished all other types of khatas (property registration documents) except for the E Khata
   • The E Khata must now be issued in accordance with the law
   • This move aims to streamline property transactions and enhance transparency
4. Expectations:
   • With these measures in place, we hope that the regularisation process and property transactions will become more efficient and legally compliant

Having a valid khata is crucial for property transactions. Without it, the property’s marketability may be affected, and obtaining bank loans against it could become challenging.

Part XIV Of Penalties of the Registration Act 1908, gives penal powers to the Inspector General of Stamps and Registration: 

• Section 82: Penalty for making false statements, delivering false copies or translations, false personation, and abetment
• Section 83: Registering officers may commence prosecutions

Recently, the Inspector General of Stamps and Registration issued a circular delegating power to punish those producing fake documents, but implementation of these powers leave much to be desired.

Property ownership and the discrepancy between the owner’s claim and the information in the RTC (Record of Rights, Tenancy, and Crops)

1. Khata property and BDA:

• A Khata is a property account maintained by the local municipal corporation (such as BBMP in Bengaluru) for property tax assessment. It helps classify properties as either A Khata (residential or commercial) or B Khata (properties not fully compliant with regulations)
• The Bangalore Development Authority (BDA) is a government body responsible for urban planning and development in Bengaluru
• If the RTC mentions the property as being under BDA, it might indicate that the BDA was involved in the acquisition or development of the land. However, this doesn’t necessarily mean it’s an issue. The critical factor is whether the property has been legally converted from agricultural land to non-agricultural land

2. RTC and ownership claims:

• The RTC reflects the ownership details, including the owner’s name. If the owner’s name matches the claim, that is a positive sign
• However, discrepancies can occur due to historical reasons, court orders, or administrative changes. For example, land initially notified for acquisition might later be denotified, leading to inconsistencies
• Sometimes, landowners obtain revenue entries to show that their land is excluded from acquisition proceedings. However, if the BDA challenges this, it can create confusion

(Part 3 of the series will deal with Apartment Associations Registration and Laws)

(Consulting legal experts or professionals experienced in property matters is advisable. They can guide you through the paperwork, legal requirements, and any specific provisions related to the land)

Also read:

• Looking to buy property in Bengaluru? Here’s all about land types and sanctioning authorities
• Documents to check before you buy any property in Bengaluru
• Documents to check before you buy an apartment or BDA site in Bengaluru