Bengaluru Property Owners Alert: Can You Get Mutation Without a Khata?

In Bengaluru, Khata is a crucial document for property tax and other legal matters, even though it does not solely establish ownership. However, it helps in establishing the ownership chain and showing that property tax is being paid. If some records are missing for a property, you can get a B-Khata, and once everything is sorted out, that B-Khata can be converted to an A-Khata.

Mrinal Trivedi, Associate Principal Partner at Square Yards, explains that mutation is the process by which the ownership of a property is updated in municipal records following a sale, inheritance, gift, or other form of transfer. Trivedi states, 'In Bengaluru, mutation is effectively carried out through Khata registration or Khata transfer, as Khata represents the entry of a property and its owner in BBMP's property tax register.'

The Bruhat Bengaluru Mahanagara Palike (BBMP) generally requires the property to be assessed and entered into its records before recording any change in ownership. According to Trivedi, if a Khata has not been issued due to incomplete approvals, deviations, or classification issues, BBMP will not proceed with mutation until these aspects are resolved. This means that while ownership may legally pass through a registered sale deed, the municipal records may continue to reflect the previous owner or remain unassessed.

Amrutha Varshini Sreedhar, Partner Designate at King Stubb and Kasiva, notes that in Bengaluru, mutation may still be possible in certain cases even if a Khata has not yet been issued, provided there are valid title documents such as a registered sale deed, inheritance documents, or court orders. However, the absence of a Khata can significantly delay or complicate the mutation process because local authorities often insist on Khata records to update ownership details in municipal databases. Sreedhar adds, 'Therefore, while legally mutation is not entirely barred without a Khata, practically it becomes difficult and subject to scrutiny by the concerned authorities.'

Without a Khata, can the property be sold? Sreedhar explains that a property can technically be sold without a Khata if the seller possesses a valid and marketable title through registered ownership documents. Under property law, title flows from the sale deed and not merely from the Khata certificate. However, in Bengaluru, Khata has become an important document for due diligence, property tax assessment, and obtaining loans or approvals. Sreedhar clarifies, 'Buyers and financial institutions are often reluctant to proceed with transactions involving properties without Khata because it raises concerns regarding municipal compliance, legality of construction, and future regularisation issues.' As a result, while sale is legally possible, the lack of Khata may adversely affect the property's marketability and valuation.

Can a property be sold only with a B Khata? Sreedhar explains that properties having only a B Khata are frequently bought and sold in Bengaluru, particularly in peripheral areas and revenue layouts. The B Khata essentially indicates that the property is recorded for tax purposes but does not fully comply with planning and municipal regulations required for an A Khata. While there is no absolute prohibition on the sale of B Khata properties, such transactions carry higher legal and financial risks. Banks may refuse home loans, and buyers may face challenges in obtaining building approvals, occupancy certificates, or future regularisation. Sreedhar advises, 'Therefore, purchasers must undertake thorough legal due diligence before entering into such transactions.'

Can a property be mutated with only a B Khata? According to Sreedhar, mutation of a property with only a B Khata is generally possible because B Khata properties are still reflected in municipal tax records. Authorities may allow mutation based on registered title documents and payment of property taxes. However, mutation in such cases does not regularise the property nor does it convert the property into an A Khata category. It merely updates the name of the owner in the municipal records for taxation purposes. Sreedhar emphasizes, 'Property owners should therefore understand that mutation of a B Khata property does not cure underlying regulatory or planning violations associated with the property.'