The khata is a municipal revenue record showing who is liable to pay property tax. It is often misdescribed as a title document. It is not one, and this distinction matters.
A khata
The property is on the main municipal register, having been assessed as complying with the applicable approvals and regulations. Practically, an A khata property can obtain building plan sanction, a trade licence, and finance from most lenders without difficulty, and it transfers cleanly.
B khata
Maintained as a separate register for properties that are not fully compliant, for instance where the layout was not approved, betterment charges were unpaid, or construction deviated from the sanctioned plan. The municipality accepts tax from them, which people wrongly read as regularisation. Consequences:
- Building plan sanction is generally not granted
- Trade licences and certain utility connections become difficult
- Many banks decline home loans, and those that lend often do so on worse terms
- Resale is slower and the price reflects it
Khata is about municipal compliance and tax liability. Title is about ownership, and it comes from the registered deeds and the encumbrance record. A property can have a perfect A khata and defective title, or a B khata and clean title. Verify both, separately.
e-khata is now mandatory in Bengaluru
This is no longer a transition you can wait out. e-khata is mandatory for property registration within BBMP limits, and a property cannot be registered, sold or transferred without a valid e-khata. Applications are made through the BBMP e-Aasthi portal or Seva Sindhu, with the sale deed, encumbrance certificate, Aadhaar and property tax receipts.
Two practical consequences. First, confirm the seller already holds a valid e-khata before you pay any advance, because obtaining one mid-transaction is what delays registrations. Second, B khata holders should check the current conversion window, since the state has periodically reduced the B-to-A conversion charge, and that is the cheapest moment to regularise.
If you are buying B khata
Go in with your eyes open: arrange finance before committing, price the restriction in, check whether the property is capable of regularisation, and confirm there is no deviation that risks demolition. Have the title examined more carefully rather than less.