Exploring the Process and Importance of Khata Amalgamation in Bangalore

Bangalore, Located in southern India, is often called the Silicon Valley of India due to its accelerated growth of tangible and service sector infrastructure. 

With property sales transactions increasing steadily, it is vital to understand all the legalities and formalities affecting property owners and potential buyers. 

In this blog, you will read about what Khata Amalgamation is, why it is required, and the steps one has to take to do it in Bangalore.

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What is Khata?

As the name implies, Khata is an Urdu word for maintaining the accounts on the property. Khata is an account or record that contains details about a property, including the owner’s name, property size, location, built-up area, and property identification number.

 A Khata Certificate is required in the case of a transfer or at the time of the property’s new registration. It cannot be used in place of a Transfer Deed.

Types of Khata:

• A Khata: This type of Khata is fully legal and indicates that the property adheres to all building regulations and has current tax payments.
  
• B Khata: This type of Khata is temporary or provisional. Properties under B Khata may have building regulation violations or be in the process of regularisation.

 Owners may encounter difficulties in obtaining building licenses, loans, or completing property transactions

Difference between A Khata and B Khata

A Khata	B Khata
A Khata is Considered a legal property.	B Khata is Considered as an illegal or semi-legal property.
A Khata Falls under BBMP jurisdiction	B Khata Falls under local jurisdiction
Owners of A Khata properties have their property taxes updated and paid regularly.	While property taxes are paid for B Khata properties, they are listed separately in the B register, indicating irregularities or deviations from approved plans.
These properties can be easily bought, sold, or transferred. Financial institutions recognize them, making it possible to obtain loans and mortgages.	Transactions involving B Khata properties are restricted. Selling, buying, or transferring them can be complicated and may not be recognized by financial institutions for loans or mortgages.
Owners can obtain building permits, licenses for modifications, and other approvals from the municipal authorities.	Obtaining building permits or licenses for modifications and extensions can be difficult or impossible for B Khata properties.
Properties with A Khata are considered regularised and have clear titles, making them more desirable for buyers and investors.	Owners of B Khata properties often need to apply for regularisation schemes (such as Akrama Sakrama) to convert them to A Khata by complying with required regulations and paying penalties or fees.
Loans can be availed.	Cannot avail of loans

What is Khata Amalgamation?

Khata Amalgamation refers to the process of combining multiple Khatas into a single Khata. A Khata is an essential document that certifies the ownership of a property, along with details like the owner’s name, property dimensions, location, and property identification number (PID).

When a property owner owns multiple adjacent properties or plots, they may choose to amalgamate them into a single Khata for ease of management and to avoid paying multiple property taxes.

Khata Amalgamation is done for:

BDA Property: BDA Property typically refers to properties developed or approved by the Bangalore Development Authority (BDA). The BDA is a government organization responsible for the planning and development of urban infrastructure and housing in Bangalore, India. 

BBMP Property: BBMP stands for Bruhat Bengaluru Mahanagara Palike. It is the administrative body responsible for the civic and infrastructural needs of the Greater Bangalore metropolitan area.

BMRDA Property: BMRDA stands for Bangalore Metropolitan Region Development Authority. It is a governmental organisation responsible for planning and coordinating the development of the Bangalore Metropolitan Region.

Importance of Khata Amalgamation in Bangalore

1. Simplified Property Management: By combining multiple properties into a single Khata, property owners can manage their assets more efficiently. It reduces the administrative burden of maintaining separate documents for each property.
2. Ease of Transactions: Selling or transferring property becomes simpler with a single Khata. It streamlines the legal processes involved in property transactions.
3. Tax Benefits: Amalgamating Khatas can potentially reduce the overall property tax liability, as the tax assessment might be more favourable when considering a larger, singular property rather than multiple smaller ones.
4. Regulatory Compliance: Ensuring that all property documents are in order is crucial for regulatory compliance. Amalgamation helps maintain accurate and updated records with the municipal authorities.

Benefits of Khata Amalgamation in Bangalore

Khata Amalgamation, the process of combining multiple Khatas into a single Khata, offers several advantages for property owners in Bangalore. Here are some key benefits:

1. Simplified Property Management:
   • Centralised Documentation: Managing one set of documents instead of multiple ones for each property simplifies record-keeping.
   • Reduced Administrative Burden: It streamlines administrative tasks such as paying property taxes, updating ownership details, and dealing with municipal authorities.
2. Cost Efficiency:
   • Lower Property Tax Liability: Amalgamating properties might result in a lower overall tax assessment than multiple smaller properties.
   • Reduced Fees: Fewer transactions and lower administrative fees can lead to cost savings over time.
3. Ease of Transactions:
   • Simplified Sale or Transfer: With a single Khata, selling or transferring property becomes more straightforward. It reduces the complexity involved in property transactions.
   • Enhanced Marketability: A single, larger property can be more attractive to buyers than multiple smaller plots.
4. Regulatory Compliance:
   • Accurate Records: Amalgamating Khatas ensures that all property records are updated and accurate with the municipal authorities.
   • Legal Clarity: It helps maintain clear and unambiguous ownership records, which is crucial for regulatory compliance and avoiding legal disputes.
5. Improved Property Utilization:
   • Development Opportunities: A single, larger plot of land may offer better opportunities for development and construction, including the possibility of building larger structures or complexes.
   • Optimal Use of Space: Amalgamation can lead to better land planning and utilization, maximizing its potential.
6. Enhanced Property Value:
   • Increased Valuation: Larger, amalgamated properties often have a higher market value than individual smaller plots.
   • Attractive for Investors: Investors and developers may find amalgamated properties more appealing due to the potential for larger-scale projects.
7. Convenience in Legal Matters:
   • Streamlined Legal Processes: Dealing with a single Khata can simplify legal processes such as inheritance, litigation, and dispute resolution.
   • Reduced Risk of Disputes: With clear and consolidated property records, the risk of ownership disputes is minimised.

Procedure for Khata Amalgamation in Bangalore

The process of Khata Amalgamation involves several steps and requires coordination with the Bruhat Bengaluru Mahanagara Palike (BBMP), the municipal corporation of Bangalore. Here’s a step-by-step guide:

1. Application Submission: The property owner must submit an application for Khata Amalgamation to the BBMP. The application form can be obtained from the BBMP office or downloaded from their official website.

Sr. No.	Property Type	Application forms for Khata Amalgamation in Bangalore
1.	BMRDA Property	BMRDA Khata Amalgamation Form
2.	BBMP Property	BBMP Khata Application Form
3.	BDA Property	BDA Khata Amalgamation Form

2. Required Documents: Along with the application, the following documents must be submitted:
   • Copies of the sale deeds of all the properties to be amalgamated
   • Original Khata certificates and extracts of each property
   • Encumbrance certificates
   • Latest property tax receipts
   • Approved building plan, if applicable
3. Verification Process: Once the application and documents are submitted, the BBMP officials will conduct a verification process. They will inspect the properties and verify the details provided in the application.
4. Fee Payment: The property owner must pay a nominal fee for the Khata Amalgamation process. The fee structure can vary based on the property size and location.
5. Approval and Issuance: The BBMP will approve the Khata Amalgamation after successful verification and fee payment. The property owner will receive a new Khata certificate and extract reflecting the amalgamated properties.

Documents Required for Khata Amalgamation in Bangalore

The Khata Amalgamation process involves submitting several important documents to the Bruhat Bengaluru Mahanagara Palike (BBMP). Here’s a detailed list of the required documents:

1. Application Form:
   • Duly filled and signed application form for Khata Amalgamation. The form can be obtained from the BBMP office or downloaded from their official website.

 

Sr. No.	Scenario	Documents Required
1	Through Sale deed	– Sale deed – Tax paid receipt (for current year) – Encumbrance Certificate (Form-15) from the date of the sale deed to the current date – Self-attached sketch showing amalgamated properties with measurements
2	Through Amalgamation deed	– Previous title deeds – Amalgamation deed – Tax paid receipt (for the current year) – Encumbrance Certificate (Form-15) from the date of sale deed or possession certificate to the current date – Self-attached sketch showing amalgamated properties with measurements
3	Through Amalgamation deed (in case of BDA allotted)	– Lease cum sale deeds/sale deeds – Amalgamation deed – Tax paid receipt (for current year) – Encumbrance Certificate (Form-15) (up to the month of the application) – NOC from BDA if property from vacant land – Self-attached sketch showing overall and bifurcation area details
4	Khata Amalgamation gifted/property acquired through Will or Death	– Affidavit regarding Inheritance/Gift/Court Decree – Court Decree – Registered Will – Original Death Certificate (for Khatadar’s death) – EC
5	Additional Documents	– Original Khata Certificates and Extracts – Copies of the property owner’s identity proof (such as Aadhar card, passport, or voter ID) and address proof (such as utility bill or rental agreement) – Affidavit (An affidavit stating that the properties are adjacent and the owner wishes to amalgamate them for better management and utilization)
6	Any Other Documents Required by BBMP	– The BBMP may request additional documents based on specific case requirements or regulation changes.

Procedure for Submitting Khata Amalgamation Application in Bangalore

1. Prepare the Documents: Collect all the required documents and ensure they are accurate and up-to-date.
2. Visit the BBMP/BMRDA/BDA Office: Go to the respective BBMP office where the properties are located.
3. Submit the Application: Submit the duly filled application form and all the supporting documents.
4. Verification Process: The BBMP officials will verify the documents and inspect the properties.
5. Pay the Fees: Pay the nominal fee required for the Khata Amalgamation process.
6. Receive the Amalgamated Khata: After successful verification and fee payment, the BBMP will issue the new Khata certificate and extract reflecting the amalgamated properties.

Charges for Khata  Amalgamation and Time for Processing:

The time taken for this process is generally 30 days with a processing fee of 2% of the stamp duty paid for registration.

Contents of Khata Amalgamation Certificate

• Property owner’s name
• Size of the property/measurement of the property
• Location of the property
• Built-up area of the property
• Whether the property is vacant or occupied
• Purpose of utilization of the property
• The annual value of the property

Common Challenges and Tips

• Documentation: Ensure that all the required documents are accurate and current. Any discrepancies can lead to delays or rejection of the application.
• Follow-Up: Regular follow-ups with the BBMP officials can help expedite the process. It’s essential to stay informed about the status of your application.
• Professional Assistance: Consider seeking assistance from legal professionals or property consultants who are well-versed in the Khata Amalgamation process. Their expertise can be valuable in navigating bureaucratic procedures.

Contact Information of Khata Amalgamation Offices in Bangalore

Sr. No.	Property Type	Contact Information
1.	BMRDA Property	For BMRDA Khata Amalgamation
2.	BBMP Property	For BBMP Khata Amalgamation
3.	BDA Property	For BDA Khata Amalgamation

Conclusion

Khata Amalgamation is a significant process for Bangalore property owners looking to streamline their property management and ensure regulatory compliance. Understanding the procedure and its importance can help property owners make informed decisions and avoid potential legal complications.

Following the outlined steps and tips, property owners can successfully amalgamate their Khatas and enjoy the benefits of simplified property ownership.

Frequently Asked Questions on Khata Amalgamatin in Bangalore

Q1. What is Khata Amalgamation?

Ans1. Khata Amalgamation is the process of combining multiple Khatas into a single Khata. A Khata certifies property ownership and includes details like the owner’s name, property dimensions, location, and property identification number (PID).

Q2. Why is Khata Amalgamation important?

Ans2. Khata Amalgamation is important for simplified property management, ease of transactions, potential tax benefits, and ensuring regulatory compliance by maintaining accurate and updated records with municipal authorities.

Q3. What documents are required for the Khata Amalgamation in Bangalore?

Ans3. Required documents include the application form, copies of sale deeds, original Khata certificates and extracts, encumbrance certificates, latest property tax receipts, approved building plan (if applicable), and proof of identity and address.

Q4. How does Khata Amalgamation benefit property owners in Bangalore?

Ans4. Benefits include simplified property management, cost efficiency, ease of transactions, regulatory compliance, improved property utilization, enhanced property value, and convenience in legal matters.

Q5. What is the procedure for Khata Amalgamation in Bangalore?

Ans5. The procedure involves submitting an application form and required documents to the BBMP, undergoing a verification process, paying the required fees, and receiving the new amalgamated Khata certificate and extract.

Q6. Can Khata Amalgamation reduce property tax liability?

Ans6. Yes, Khata Amalgamation can potentially reduce overall property tax liability, as the tax assessment might be more favourable for a larger, singular property rather than multiple smaller ones.

Q7. What challenges might one face during the Khata Amalgamation process?

Ans7. Common challenges include ensuring accurate and up-to-date documentation, regular follow-ups with BBMP officials, and navigating bureaucratic procedures, which might require professional assistance.

Q8. Is a No Objection Certificate (NOC) required for Khata Amalgamation?

Ans8. In some cases, a No Objection Certificate from the Bangalore Development Authority (BDA) or other relevant authorities may be required for the Khata Amalgamation.

Q9. What additional documents are needed for Khata Amalgamation of a gifted property or one acquired through a will?

Ans9. Additional documents include an affidavit regarding inheritance/gift/court decree, the court decree, registered will, original death certificate (for the deceased Khatadar), and an encumbrance certificate.

Q10. How long does the Khata Amalgamation process take in Bangalore?

Ans10. The duration of the Khata Amalgamation process can vary depending on the verification process and the efficiency of the BBMP. Regular follow-ups can help expedite the process.