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July 10, 2018

Know more about Katha and different types of Katha…

You want to buy property, but you keep hearing Katha, Katha.. A-Katha and B-Katha, and you are not sure what exactly it means, then what you are about to read will benefit you greatly…

property tax

Few questions to look into before we understand about Kathas:

What is a Municipality ?

A Municipality is a District’s local Government, there are three levels of Government: the Central Govt, the State Govt, and the District Municipality. The District Municipality in Bangalore is called the BBMP, Bruhat Bengaluru Mahanagara Palikhe, that came into existence in 2007

 

What are the responsibilities of BBMP ?

  • Zoning and building regulations
  • Health
  • Hygiene
  • Licensing
  • Trade
  • Education
  • Quality of life issues such as lung spaces, water bodies, parks and greenery.

 

How is the structure and leadership of BBMP like ?

BBMP is run by a City council composed of elected representatives, called corporators, one from each of the wards (localities) of the city.

That is, the City is divided into regions called wards, there are 199 wards in Bengaluru. And each of these wards has a Corporator to represent their region in the BBMP.

The BBMP is led by Mayor R.Sampath Raj, Indian National Congress. Elections in the BBMP are held once in five years.

For HBR Layout, the ward number id 24, and our Corporator is B.Govinda Raju. To find out the ward number and Corporator of your region, please see http://bbmp.gov.in/kn_IN/

 

Is Panchayat and BBMP the same thing ?

No, BBMP covers most of the urban area of Bangalore and is growing in its territory, whereas Panchayat covers Village areas.
In other words, property under BBMP gets A Katha, and property under Panchayat gets B Katha.

 

What is the difference between Title Deed and Katha ?

Many get confused between these two documents.
A Title Deed is a written contract between the buyer and seller during the transfer of property, to prove ownership of the property.
A Katha is a document to assess the property for the purpose of paying taxes and to keep records.

Now we’re ready to understand the Katha document…

Katha literally means an account, it is a document that shows this property owner has an account with the Municipality to pay taxes. A Katha consists of two elements: Katha Certificate and Katha Extract.

Khatha Certificate is required for property registration and transfer of property from the owner’s name to another person’s name. To apply for a Khatha certificate, the owner has to give a letter in this regard along with the latest tax payment receipt along with a standard fee of Rs 25 per property. A Khatha certificate will enable you to apply for water connection, electricity connection, bank loan, or acquiring a commercial license.

Khatha Extract contains details of the property like its size, whether it is used for commercial or residential purpose, the valuation of the property as per the latest assessment. It can be obtained by paying Rs 100, and is valid for five years.

How to apply for Katha ?

  • Buy a Katha application form from the BBMP office.
  • Fill the form along with your property details and latest tax receipts.
  • Submit the form to the Assistant Revenue Officer, for HBR Layout the ARO is: Mr Narayan, who is seated at Shop No. 16, BDA Complex, Opp KEB Office, HBR Layout, Bangalore.
  • Time taken is about 5 weeks, to get the Katha either from the BBMP office or Panchayat office.
  • To know the details of the ARO for your locality, please see http://bbmp.gov.in/documents/

What is the difference between A-Katha and B-Katha ?

  • A-Katha properties fall under the BBMP jurisdiction, whereas B Katha properties fall under local jurisdiction (that is the Panchayat).
  • An A-Khata means you are buying a property that is legal, and it will allow you to construct on it and obtain a trade or building license.
  • There are many advantages of owning an A Katha property, one such advantage is Bank loans.
  • For B Katha properties it is very difficult to get bank loans. in case of B Khatha, you are not entailed to have building license, trade licence or loan from banks or any other financial transactions.
  • B Khata is only a temporary measure which will allow you to buy or sell a site, but you will face problems when you go for construction.

How did the B-Katha come into existence ? 

When BBMP was formed in 2007, they had two major problems to solve:

  1. Illegal constructions enjoying civic amenities without paying taxes.
  2. No uniform taxation policy.

So the BBMP imposed a tax on the illegal constructions, the taxes collected from these properties were recorded in a register called B register and the Katha issued was called B-Katha. Thus anyone having a B Khatha essentially is a non-BBMP approved construction. Hence, it is not advisable to buy such properties.

However, it is possible to convert B khata property to an A khata property

How to convert B-Katha to A-Katha ?

• You should have DC converted property

(DC Conversion is a legal process and is mandatory Under Section 95 of Karnataka Land Revenue Act, by which the occupant or the property owner makes an application to the Deputy Commissioner of the District seeking his assent/ permission/sanction for the change of land use from agriculture to non- agriculture(Residential/Public Use/Semi Public Use/Industrial/Commercial) use. The Jurisdictional revenue authority will consider the application on the basis of rules and regulation formulated for this purpose and accordingly an order may be issued. The Conversion fee/fine is levied and an official memorandum (OM) is issued to the applicant, directing the applicant to pay the same in the state treasury. Upon the confirmation of such payment, the Deputy Commissioner will issue Conversion Order.)

• Property tax must be paid till date
• Betterment charges for the conversion of property has to be paid to BBMP

Hoping this article was beneficial to you :)

To know more about availability of A-Katha properties and conversion possibilities of B-Katha properties, please reach out to us: Esther Enterprises

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About Francis Selvaraj

CEO of Esther Enterprises, Owner of Camp Revive Corporate Training facility, Hosur. “Believes in investing into People and property “, Over the last two decades, guided Esther Enterprises to develop over 2 million sq. feet of residential land and played a part in many families fulfilling their dreams of having their own homes in Bangalore city ! His father being from the Indian Military, had a hand in developing exclusive residential layouts for Ex-Service men like Ex-service men colony @ Banaswadi, Defence Enclave @ Geddalahalli, and Esther Defence Avenue @ K.Narayanpura !

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