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Tuesday, July 9, 2013

The khatha in Bangalore is issued by the BBMP. Khatha issued by BBMP means on account of the property at the BBMP. Upon registration of the property (example: sale deed), you will have to approach the revenue authority (BBMP) to enter your ownership details in their records in respect of the property.

TYPES OF KHATHA
There are different kinds of khatha called in different names at different places, such as khatha certificate, khatha extract, khatha endorsement, phani, form 9, form 10, form 1 and form 12 (form numbers as provided in the Karnataka Panchayath Raj rule).

NEW KHATHA REGISTRATION 
The duly filled khatha application along with supporting documents (example: sale deed) must be submitted to the office of assistant revenue officer. The application should be submitted with statutory fees, paid through Demand Draft (D.D). The statutory fee is 2% of stamp duty paid on the conveyance deed.

TRANSFER OF KHATHA
The khatha of the property can be transferred by submitting duly filled application with supporting document (example: gift deed, sale deed) to the assistant revenue office. The application should be filed along with prescribed statutory fee, paid through Demand Draft (D.D). The statutory fee is 2% of stamp duty paid on the conveyance deed.

APPLYING FOR KHATHACERTIFICATE
Property owner can apply for khatha certificate upon payment of up to date property tax and prescribed fee.


WHY DO I NEED KHATHA?
The khatha document is required to apply loan, to obtain licence to construct house and proof of property identification.

SOME TIPS TO REGISTER KHATHA WITHOUT PAYING BRIBE
1. Fill the application correctly, support with necessary documents only.
2. Obtain acknowledgement after submission of the khatha application.
3.  Use R.T.I to verify the progress of the application.
4. Receive and answer objection by written communication.
5. The sale deed, or gift, or conveyance documents should have correct schedule and you should mention the same in khatha application.
6. Mention PID number of the property, if it is available.
7. You should have patience, honesty and willpower to witness there is no corruption.
8. Wearing “I am Anna” may help you in getting things done easily (left to the individual beliefs!).      
            
SECTION 114; KARNATAKA MUNICIPALITY CORPORATION ACT, 1976
Section 114 obligates the transferor and the transferee of a property in respect whereof the title is transferred to give notice of such transfer to the Commissioner. Similar obligation is cast to give notice in case of death of a person in whom the title of the property is vested and which is required to be transferred to his heir. Section 114(3) provides that, the notice shall be in such form as the Commissioner direct and transferee should produce before the Commissioner any documents evidencing the transfer or succession. Section 144(4) lays down that every person who makes a transfer without giving notice to the Commissioner shall continue to be liable for payment of the property tax assessed on the premises transferred, until he gives notice or until the transfer should have been recorded in the Corporation Registers. However, the liability of the transferee for the payment of the tax is not affected. From this provision the khatha procedure is derived.

‘A’ KATHA AND ‘B’ KATHA MAZE
There is nothing called as ‘B’ katha in the Karnataka Municipal Corporation Act 1976. There is only one katha which in common parlances few times referred as ‘A’ katha what has come to be known as ‘B’ katha is the ‘B’ register maintained by the BBMP.

In reality ‘B’ katha does not exist. The property identification numbers and details of tax are entered into a register called as ‘B’ register. Consequently there is no procedure in the statutes to convert ‘B’ katha to an ‘A’ katha. However you should obtain ‘A’ katha if the below conditions are fulfilled:-

1. The property should be converted to residential purposes by the order of District Commissioner.
2.  The conversion fee should be paid according to the order of the District Commissioner.
3.   Apartment or layout or houses should be constructed according to the plan sanctioned by the authority.

NON PAYMENT OF BETTERMENT FEES NOT A CRITERIA FOR KHATHA
The Hon’ble High Court of Karnataka in Purvankara Projects Limited, Bangalore Vs. The Urban Development Department, Bangalore and Others, had held that, the payment of improvement expenses (betterment fees) cannot be a condition for the registration of katha. The High Court by referring to Section 114 of Karnataka Municipal Corporation Act 1976, observed that the improvement expenses (betterment charges) which are levied and collected from the owner of the property has absolutely no connection with the name of the transferee being entered in the property tax register. Therefore, the payment of improvement expenses cannot be made a condition for entering the name of the transferee in the property tax register.

The court held that, the katha application cannot be rejected solely on the basis of non payment of the improvement charges, if other conditions are satisfied. Cancellation of katha affected on the ground of non payment of improvement charges was declared as illegal.

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Prepared by: S. Hemanth