Your document-related queries answered byPreenand P.

This is with respect to your article ‘All about khata’ in The Hindu-Habitat. May I seek your advice on the following:

My father owns a piece of land about 3000 sq.ft (RTC is in his name) acquired from a family partition suit. It is a revenue land and it’s in a plush locality under Whitefield BBMP limits.

I’m planning to construct a multi-storey house for rent. How can I obtain the necessary licences and approvals to construct? I’m worried about getting financial assistance from banks as it is a revenue land. Please advice on which is the better way to do the construction with financial aid.

Srinivas Gowda

sree.gowda@gmail.com

The word ‘revenue land’ indicates a residential site carved out of an agricultural land without the same being converted for non-agricultural residential purpose as contemplated under the provisions of the Land Revenue Act.

In respect of the areas which is now included within the BBMP limits, the BBMP is registering the Khatha in the name of the title holder if the said vacant site is carved out of the converted land. In such an event, the BBMP is now collecting betterment charges and is registering the Khatha in the name of the title holder after verifying the documents relating to the title. Only after registration of Khatha in the name of the title holder, the BBMP issues license and sanctions plan permitting construction of a residential building on such sites.

With respect to residential sites which are formed out of agricultural land (not converted for residential purpose) the BBMP is not collecting betterment charges and Khatha certificate or Khatha extracts are also not issued in the name of the title holder.

In suchcases, the BBMP is not issuing any licence or sanctioning any plan permitting construction of residential buildings.

Any construction made on such sites without obtaining valid licence and sanction plan from the BBMP therefore is an illegal and unauthorised construction. The banks are also not sanctioning loan for construction of a residential building on a revenue site.

I have been reading your articles in The Hindu over the last two weeks regarding Khata. I am a resident of Bangalore and owner of a 3-BHK unit in an apartment comprising 20 units. The land in which my apartment stands now was purchased by my builder more than seven years ago. I got my unit registered in early 2007 and have the sale deed in my name. I have been paying my property tax promptly since the date of occupation.

However, the builder has not paid the betterment charges till date. Hence no khata transfer has been made to the individual owners including me. The efforts of the flat association in persuading him to pay the betterment charges so as to get A-khata have failed. Hence I request you to clarify the following queries that I have:

* Can I apply for a B-Khata using my sale deed and the receipts for the property taxes paid by me?

* Will I be able to sell my unit in the near future with my sale deed and the B-khata?

Will the B-Khata impact the prospective price I get for my unit?

*I am not sure if my builder has any outstanding loans taken on the land on which my apartment is constructed. Will getting a B-Khata make me liable for such loans that the builder might have failed to pay?

Prashanth

chaandhu@gmail.com

You can apply for the khatha on the strength of the sale deed executed in your name and also on the basis of the tax paid receipts issued by the concerned revenue authorities. There is no impediment for selling the property with B- Khatha. However most of the banks do not entertain property with B-Khatha for loan purpose. The buyers also may not prefer B-Khatha property.

As the Government has not yet fixed the rate of betterment charges, the question of collecting betterment charges by Corporation/ CMC does not arise right now. Unless and until the betterment charges are paid, regular khatha will not be issued. Once the betterment charges are paid, khatha in Form-A will be issued and thereafter the same will be bifurcated and individual khatha will be issued.

Obtaining a B-Khatha with respect to your apartment will not bind you for payment of the outstanding loan if any availed by the builder. If the builder has taken a project loan on the security of the entire property then only the entire building consisting of 20 apartments will be subject to the charge created.

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