Legal & Documents
What is Khata? (And A Khata vs B Khata)
Bengaluru's most misunderstood document. It is not proof of ownership — and yet the difference between an A and a B can cost you your home loan.
The short answer
A khata is a Karnataka municipal account recording a property and who is liable for its tax. It is not proof of ownership — the registered sale deed is.
But the distinction that matters is A khata vs B khata. An A khata is a fully compliant property. A B khata is one the municipality has recorded for tax purposes while acknowledging it does not fully comply — and that difference can cost you your home loan, your building approval, and a great deal at resale.
What a khata is
The word means "account". It is exactly that: an account maintained by the municipal body — BBMP in Bengaluru — recording a property, its size, its location, and who is liable to pay tax on it.
It comes in two parts. The khata certificate says an account exists in your name. The khata extract gives the details — dimensions, built-up area, tax assessment.
You need it to pay property tax, to apply for a building licence, to get water and electricity connections, and to obtain a home loan.
What a khata is NOT
This is the most common and most costly misunderstanding in Bengaluru property.
A khata records who pays the tax. It does not record who owns the land. Indian courts have said so repeatedly.
Someone can hold a khata, pay property tax for twenty years, and still not own the property — because the sale deed was never registered.
If a seller offers a khata as proof of ownership, ask for the registered sale deed and the chain of title. The khata is supporting evidence, and useful. It is not the thing itself.
A khata vs B khata
| A Khata | B Khata | |
|---|---|---|
| What it means | The property is fully compliant — legal layout, approved plan, all conversions and charges done | The municipality records it for tax purposes while acknowledging it is not fully compliant |
| Home loan | Yes, from any bank | Very difficult. Most mainstream banks refuse. Some NBFCs lend, at a higher rate. |
| Building plan approval | Yes | No. You cannot get a sanctioned plan to build or extend. |
| Trade licence | Yes | No |
| Resale | Straightforward | Hard. A careful buyer will discount heavily, or walk. |
| Price | Full market value | Typically 10–30% below an equivalent A khata property |
| Can it be converted? | — | Sometimes — via betterment charges and a regularisation scheme. But schemes open and close, and there is no guarantee. |
The discount on a B khata property is real. So is the reason for it. You are buying a property the municipality has declined to certify as compliant, and you are betting that a future regularisation scheme will fix that. It might. It might not.
The B khata problem, honestly
B khata properties exist because of a genuinely messy history: unauthorised layouts, revenue land not converted to non-agricultural use, buildings that deviate from approved plans, development charges never paid.
The BBMP created the B register so that these properties could at least be taxed. It was an accounting convenience, not a legalisation.
The loan. Most mainstream banks will not lend against a B khata property. NBFCs sometimes will — at a materially higher rate.
The building. No sanctioned plan means no lawful construction or extension.
The exit. Your buyer will face the same problems you did, and will price accordingly. The discount you enjoyed on the way in, you pay on the way out.
The uncertainty. Regularisation schemes come and go, and are periodically challenged in court. Do not buy a B khata property assuming it will become an A khata. It may not, and there is no timetable.
Should you ever buy one? Some people do, with their eyes open, at a genuine discount, paying cash, in an area they know well. That is a decision, not a mistake. Making it without knowing is the mistake.
E-khata
Karnataka has been moving to a digital khata system. The e-khata is intended to reduce fraud, remove intermediaries, and make the record verifiable online.
The practical implication for a buyer is straightforward: you can check the record yourself, rather than relying on a paper document a seller hands you. Do that. Paper khatas have been forged.
How to get or transfer a khata
- Register the sale deed first. The khata follows registration; it does not replace it.
- Apply to BBMP (or the relevant municipal body) for khata transfer — this is mutation, by another name.
- Submit: the registered sale deed, the previous owner's khata, tax paid receipts, an encumbrance certificate, and ID.
- Pay the fee — a percentage of the stamp duty, typically.
- Wait — usually 30 to 90 days.
- Verify the new khata names you, spelled correctly, with the right dimensions.
“Is this an A khata or a B khata?”
Ask early. Ask directly. And do not accept 'it's in process' as an answer — that phrase has been doing a great deal of work in Bengaluru for a very long time.
Then verify it yourself on the BBMP portal, rather than taking the seller's paper at face value.
Frequently asked questions
Is a khata proof of ownership?
No. A khata records who is liable to pay property tax. It does not record who owns the land. Indian courts have held this repeatedly. Someone can hold a khata for twenty years and still not own the property, because the sale deed was never registered. Ask for the registered sale deed and the chain of title.
What is the difference between A khata and B khata?
An A khata means the property is fully compliant — legal layout, approved plan, all conversions and charges done. A B khata means the municipality has recorded it for tax purposes while acknowledging it is NOT fully compliant. The practical difference: most banks will not lend against a B khata, you cannot get a building plan approved, and resale is significantly harder.
Can I get a home loan on a B khata property?
Very difficult. Most mainstream banks refuse. Some NBFCs will lend, at a materially higher interest rate. This is the single biggest practical cost of a B khata, and it is also why B khata properties trade 10-30% below equivalent A khata ones.
Can a B khata be converted to an A khata?
Sometimes — through betterment charges and a regularisation scheme. But schemes open and close, they are periodically challenged in court, and there is no timetable and no guarantee. Do not buy a B khata property on the assumption that it will become an A khata.
What is e-khata?
Karnataka's digital khata system, intended to reduce fraud and make the record verifiable online. The practical benefit for a buyer is that you can check the record yourself rather than relying on a paper document handed to you by the seller. Paper khatas have been forged. Verify online.