Advertisement
The Gulf conflict has disrupted global supply chains, pushed...
REITs have changed the way commercial real estate is owned a...
What does it take to preserve a real estate legacy while bui...
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Karnataka’s Bhoo Guarantee initiative has received a muted response from Bengaluru property owners despite a temporary reduction in the fee for converting B-Khata properties into A-Khata. Of nearly 8.5 lakh identified B-Khata properties, only a small proportion applied for conversion during the concession period. The Greater Bengaluru Authority had reduced the conversion charge from 5% to 2% of the guidance value in an effort to encourage participation, but property owners cited the overall cost of regularisation and limited immediate benefits as key concerns. The weak response has also affected civic bodies’ revenue expectations.
Bengaluru’s drive to bring properties recorded under B-Khata into the A-Khata system has failed to generate the level of participation expected by civic authorities. By August 14, around 47,088 applications had been submitted against an estimated 8.49 lakh B-Khata properties across the city. Of these, 24,965 had been approved, while more than 3,000 were rejected and around 19,075 remained under consideration.
The Greater Bengaluru Authority had temporarily reduced the conversion fee from 5% to 2% of the property's guidance value under the Bhoo Guarantee initiative. The concession was introduced to make regularisation more affordable and encourage property owners to complete the conversion process. Assistance camps were also organised across the city's municipal corporations to help owners with applications and documentation.
However, the reduced conversion fee has not resulted in widespread participation. The number of applications represents only a small proportion of the total properties identified for conversion, indicating that factors beyond the fee itself are influencing owners' decisions.
One of the major concerns for property owners is the overall cost involved in regularisation. Even with a lower conversion charge, the expense can run into several lakhs for properties in areas with high guidance values. For owners who do not see an immediate financial benefit from obtaining an A-Khata, the additional cost can make conversion less attractive.
The limited response has also affected the revenue expectations of Bengaluru's civic bodies. The conversion exercise was expected to generate significant revenue while simultaneously bringing a large number of properties into the formal municipal records system. The actual participation, however, has remained well below the estimated pool of eligible properties.
B-Khata properties can involve various planning, land-use or construction-related issues. Although owners may pay municipal taxes, the status can create difficulties in areas such as property transactions, obtaining certain approvals and accessing formal financing. Converting eligible properties to A-Khata is therefore intended to improve documentation and bring them into a more structured municipal framework.
The initiative is also part of the broader effort to improve property records and administration in Bengaluru. With the city expanding rapidly and large numbers of properties being added to its urban footprint, authorities are seeking greater clarity in ownership and development records.
With the special 2% concession period now over, property owners applying subsequently will face the standard 5% conversion fee along with other applicable charges. The higher cost could make it more difficult to attract owners who had already remained hesitant during the discounted period.
The muted response could lead authorities to reassess the approach to property regularisation. The experience suggests that reducing a single fee may not be sufficient to encourage large-scale conversion, particularly when property owners continue to face substantial overall costs and uncertainty about the practical benefits of moving from B-Khata to A-Khata.
Advertisement
Facebook
Whatsapp
