The implementation of the mandatory e-Khata system for property registrations within Bruhat Bengaluru Mahanagara Palike (BBMP) limits has resulted in a substantial decline in property transactions, particularly impacting the sale and purchase of new apartment flats. Reports indicate that registrations at sub-registrar offices have decreased by 60%.
The Revenue Department introduced the e-Khata system in the BBMP area to combat fraudulent property transactions involving fake documents. To facilitate this process, the BBMP website has been integrated with the Kaveri-2 software. Impact on apartment registrations Previously, apartment builders would finish construction and obtain an Occupancy Certificate (OC) from the BBMP before registering flats in buyers’ names.
After the purchase, buyers would then apply for eKhata in their own names. However, with the new regulations, e-Khata is now mandatory for all property registrations. This change requires builders to first register the e-Khata for each flat in their names before transferring ownership to buyers. While the intention is to reduce property fraud, builders are encountering difficulties due to the BBMP’s inadequate facilities for completing this process.
As a result, flat registrations have effectively come to a halt, according to reports from concerned citizens. Server issues persist Apartment builders seeking to obtain e-Khata from the Assistant Revenue Officer (ARO) offices are encountering delays due to server issues. This situation has created considerable frustration for property buyers, particularly non-resident Indians (NRIs), who are facing setbacks in finalising their purchases, according to representatives from prominent construction companies.
Real estate companies to meet IGR Real estate developers, who typically mortgage properties to raise funds during the construction of apartments or commercial complexes, are also facing challenges due to the e-Khata requirement. Developers now need an e-Khata for each flat before releasing it from the mortgage. Representatives from real estate companies have decided to meet with the Inspector General of Registration and the Commissioner of Stamps to address these issues.
