BBMP aims to collect Rs 800 crore from conversion of B-Khata to A-Khata

A-Khata properties are those with genuine documents and are verified by the state agencies. B-Khata properties have anomalies in documentation and include properties in violation of the byelaws and buildings constructed without approved building plans. The civic body stopped issuing A-Khata to the properties which are in violation of the building byelaws.

The BBMP started maintaining the B-register for the properties which were built in violation of the byelaws and on unauthorised revenue. This helped the civic body in collecting property taxes from the owners of B-Khata properties too. The B-Khata property owners cannot avail bank loans and get occupancy/completion certificates from the BBMP.

The idea of regularisation of B-Khata properties was first proposed in 2018. Last month, the Karnataka Legislative Assembly passed the BBMP (Amendment) Bill, 2023, which proposed to do away with a penalty on unauthorised or illegal properties within the municipal limits. With the amendment, over 6.16 lakh owners of B-Khata properties in Bengaluru will be exempted from paying double the tax.

During the last Budget, the BBMP had estimated a revenue of Rs 1,000 crore from B-Khata to A-Khata Regularisation Scheme.

The BBMP budget has proposed for the speedy disposal of the Khata applications too. BBMP special commissioner for finance, Jayaram Raipura said, “Delays in disposal of Khata related files have been identified as one of the sources of revenue losses to the BBMP. To overcome this, ‘Khata Melas’ were organised during 2022-23. Understanding the possibility of increase in property tax collection on account of disposal of Khata-related applications, it is proposed to dispose of all Khata applications in a time-bound manner in 2023-24. Necessary compensation-reward-punishment will be introduced for better implementation.”

Collection of property tax is a major source and core function of the BBMP’s revenue department. BBMP officials in the Budget announced that total the property tax collected by the BBMP along with cesses has increased significantly.

While the property tax collection in 2021-22 was Rs 3,033 crore, it increased to Rs 3,758 crore in 2022-23.

“Specifically, a study to identify properties where the owners were paying commercial rates to the BESCOM (Bangalore Electricity Supply Company) and other state agencies but had declared residential property tax payments was undertaken. This has identified 12,699 cases and an amount of Rs 134 crore has already been levied,” Raipura said.

He also announced a detailed verification for self assessment declarations by all major commercial buildings. It was found that some of the property owners, under the self assessment scheme, undervalued their properties and paid lower taxes thereby defrauding the palike.

Raipura added, “The returns under the self assessment scheme will be compared with corresponding documents of other state agencies by using required software. This is expected to lead to a substantial increase in property tax collection. A target of Rs 4,790 crore is expected to be collected in the year 2023-24 under property taxes including cesses.”

Last week, the BBMP announced that it would launch a ‘Khata Andolana’ so that the property owners who own a property within the municipal limits but do not possess any ‘Khata’ can register their properties in the Form A register, also called the A-Khata.