Karnataka Cabinet Greenlights A-Khata Conversion for B-Khata Properties in Urban Areas, Ushering in Era of Legal Clarity for Millions

In a landmark move to empower urban property owners and streamline real estate governance, the Karnataka Cabinet on Thursday approved the issuance of A-Khata certificates to properties currently holding B-Khata status in unauthorized layouts across urban local bodies. The decision, announced hours after a high-level cabinet meeting, is poised to benefit thousands of residents in cities like Bengaluru, Mysuru, and Hubballi-Dharwad by granting legal recognition to long-standing informal developments.

Law and Parliamentary Affairs Minister H.K. Patil, who briefed the media post-meeting, described the policy as a "pro-people initiative" that aligns with the state's ongoing efforts to regularize revenue sites and unapproved constructions. "This is similar to our prior decisions on B-Khata properties, and importantly, it remains unhindered by any court stay," Patil stated, emphasizing that A-Khata status—reserved for properties in approved layouts—will now extend to genuine holdings in unapproved ones, provided developers secure layout approvals from competent authorities. The approval covers plots, buildings, and apartments within the jurisdiction of municipal corporations and councils under the Urban Development Department.

Chief Minister Siddaramaiah hailed the cabinet's nod as an "A-Khata Bhagya" (gift of fortune) for urban dwellers, underscoring the government's commitment to its "Your Property, Your Right" guarantee—the sixth in its slate of pre-poll promises. In a post on X, the CM highlighted how the reform addresses the plight of families who invested in residential plots carved from agricultural lands without proper town planning clearances, often due to small developers exploiting regulatory gaps.

This fresh cabinet resolution builds on the momentum of a 100-day conversion drive launched in November 2025, which targeted B-Khata to A-Khata upgrades specifically in Bengaluru and is expected to aid around 15 lakh property owners statewide. Under that initiative, eligible properties—capped at 2,000 square meters—could apply online via the Bruhat Bengaluru Mahanagara Palike (BBMP) portal for a nominal ₹500 fee, followed by a 5% levy on the property's guidance value to fund civic infrastructure like water, electricity, and drainage.

The new policy extends these benefits beyond Bengaluru to all urban local bodies, with a key condition: Developers must obtain retrospective layout sanctions from revenue and town planning authorities. This addresses a chronic issue where agricultural lands were subdivided into "revenue sites" post-2021, evading the mandatory non-agricultural conversion under the Karnataka Land Revenue Act and approvals from the Karnataka Town and Country Planning (KTCP) Act, 1961. Properties registered before September 30, 2024, remain prioritized for regularization, though no firm deadline for the latest rollout has been set.

For decades, B-Khata holders—often middle-class families in unauthorized layouts—have grappled with restricted access to bank loans, building plan sanctions, and basic amenities due to their "temporary" status. The conversion to A-Khata promises a uniform ownership record, unlocking financial opportunities and enabling legitimate expansions. "It's about giving legal wings to dreams built on shaky foundations," said urban development expert Dr. Rajeshwari Nair, noting that the reform could boost property values by 20-30% in affected areas.

However, caveats apply. Multi-storey buildings on B-Khata land won't see immediate upgrades; authorities will first regularize the underlying plot before scrutinizing construction legality to curb fraud. Exclusions include disputed lands, government holdings, and sites under the Prohibition of Transfer of Certain Lands (PTCL) Act or Section 94C of the Karnataka Land Reforms Act. Owners are urged to apply through dedicated help desks at civic bodies or online portals, with doorstep verifications including photo and video documentation to ensure transparency.

The decision forms part of a trio of urban reforms announced earlier in 2025, alongside eased occupancy certificate norms for small sites and the creation of five new civic bodies to decentralize Bengaluru's governance. Proponents argue it will reduce litigation, enhance revenue collection via betterment fees, and accelerate infrastructure delivery in sprawling suburbs.

Critics, including environmentalists, caution that blanket regularization might encourage future encroachments on green belts. "While it empowers the common man, we need robust enforcement to prevent a repeat of the revenue site menace," warned a spokesperson for the Federation of Karnataka Chambers of Commerce and Industry.