Understanding Khata Bifurcation in Bangalore: A Comprehensive Guide

The IT capital of India, Bangalore also known as the ‘Silicon Valley of India’ is one of the Commercial and residential property markets that has a unique property management set-up. An important feature of property management in Bangalore is the Khata The Khata is an important aspect of property management in Bangalore. 

For all those who own properties in Bangalore or are planning to purchase property in Bangalore, it is imperative to understand what Khata is and the Khata bifurcation process. In this blog, we’ll learn what Khata bifurcation means, why it’s good for us, and how to do it.

What is a Khata?

A Khata is an essential document that certifies that a property is listed in the municipal records. It includes details such as the property owner’s name, the size of the property, its location, and other pertinent details.

 Essentially, it is a legal document required for property tax assessments and is crucial for any property-related transactions, such as selling, transferring, or applying for a loan.

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Types of Khata in Bangalore

1. A Khata

A Khata is the most desired type of Khata in Bangalore, as it denotes that a property is fully compliant with all regulations and is legally recognised by the Bruhat Bengaluru Mahanagara Palike (BBMP). Properties with an A Khata are eligible for construction approvals, trading, loans, and other legal transactions.

2. B Khata

B Khata is a record maintained for properties that do not fully comply with all regulations or have pending issues with the BBMP. While B Khata properties are legally recognised to some extent, they face significant restrictions compared to A Khata properties.

 

Feature	A Khata	B Khata
Legal Validity	Fully legally valid and recognised	Limited legal recognition
Compliance	Compliant with all regulations and bylaws	Non-compliant or has pending issues with regulations
Property Transactions	Easier to buy, sell, and mortgage	Complex transactions; often require conversion to A Khata
Loan Eligibility	Eligible for loans from banks and financial institutions	Not eligible for loans
Building Licenses	Can obtain building licenses	Cannot obtain building licenses
Trade Licenses	Can obtain trade licenses	Cannot obtain trade licenses
Property Tax	Property taxes are regularly paid and updated	Property taxes must be paid, but records may have discrepancies
Conversion	Not required	This can be converted to A Khata by addressing compliance issues and paying betterment charges
Use in Legal Disputes	Strong legal standing	Weak legal standing
Approval for Construction	Construction approvals can be obtained	Construction approvals cannot be obtained
Betterment Charges	Not required	Required for conversion to A Khata

 

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Understanding Khata Bifurcation

Khata bifurcation is the process of splitting the Khata of a single property into multiple Khatas. This usually happens when a property owner decides to divide their property into smaller units.

Each unit will then have its own separate Khata, making it easier to manage property taxes and other legalities for each divided portion.

Khata Bifurcation 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 organisation responsible for the planning and development of urban infrastructure and housing in Bangalore, India. 

A Plot/ Site that is a part of the sub-division plan/layout/scheme duly approved by the authority may be further bifurcated with prior permission of the Authority and the sub-divided plot shall not be less than the prescribed size.

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.

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When is Khata Bifurcation Required?

1. Subdivision of Property: When a property is divided among heirs or sold to multiple buyers, Khata bifurcation becomes necessary to ensure each new owner has a distinct and legally recognised Khata.
2. Joint Ownership: In cases where a property is co-owned and the co-owners decide to divide their share, Khata bifurcation is required.
3. Development Projects: For builders and developers who construct multiple units (like apartments or villas) on a single plot, each unit needs its own Khata.

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Steps for Khata Bifurcation in Bangalore

Step 1: Document Preparation

Before initiating the bifurcation process, gather all necessary documents, including:

• Sale Deed/Partition Deed
• Encumbrance Certificate
• Latest Tax Paid Receipts
• Approved Building Plan (if applicable)
• Affidavit stating the reason for bifurcation
• NOC from the relevant authorities (if required)

Step 2: Application Submission

Submit the bifurcation application to the respective Bruhat Bengaluru Mahanagara Palike (BBMP) office. Ensure that the application includes all required documents and the prescribed fee.

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

Step 3: Verification Process

Once the application is submitted, BBMP officials will verify the documents and may conduct a site inspection to ensure the details provided are accurate. This step is crucial as it validates the authenticity of the bifurcation request.

Step 4: Approval and Issuance

After verification, the BBMP will process the application and issue separate Khatas for each bifurcated property unit. This process may take a few weeks to several months, depending on the complexity of the bifurcation and the efficiency of the BBMP office.

Step 5: Updating Property Records

Once the new Khatas are issued, it’s essential to update the property records accordingly. This includes informing relevant authorities and updating property tax records to reflect the bifurcation.

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Importance of Khata Bifurcation

1. Legal Recognition: Having a separate Khata for each property unit ensures legal recognition and simplifies property transactions.
2. Property Tax Assessment: Each unit’s property tax can be assessed and paid separately, avoiding disputes and confusion.
3. Ease of Sale and Transfer: Bifurcated Khatas make it easier to sell or transfer individual units without legal complications.
4. Loan and Mortgage: A separate Khata is often required when applying for loans or mortgages, as it serves as proof of ownership and legality.

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Benefits of Khata Bifurcation in Bangalore

1. Property Development Flexibility: Allows for the subdivision of large plots into smaller units for more efficient development or sale.
2. Enhanced Marketability: Increases the attractiveness of properties by offering smaller, more affordable units that appeal to a broader range of buyers.
3. Tax Optimization: Enables property owners to manage tax liabilities more effectively by dividing properties into separate units with potentially lower tax assessments.
4. Legal Clarity: Provides clear delineation and documentation of property ownership and boundaries, reducing potential disputes.
5. Investment Opportunities: This creates opportunities for investors to diversify their portfolios by acquiring smaller units or developing properties for rental income.

Documents Required for Khata Bifurcation in Bangalore

Sr. No.	Scenario	Documents Required
1.	Through Sale deed	sale deedTax-paid receipt(for the current year)Encumbrance Certificate(Form-15) from the date of sale deed to the current dateSelf-attached sketch showing the location and measurement of the property
2.	Through Inheritance(will)	Previous title deed or possession certificate in case of allotment by a Govt. agencyTax-paid receipt(for the current year)willThe original death certificate of the KhaddarEncumbrance Certificate(Form-15) from the date of sale deed or possession certificate to the current dateNotarised family tree and NOC from the family members (in cases of unregistered will)Self-attached sketch showing overall and bifurcation area details.
3.	Through Gift	Previous title deed or possession certificate in case of allotment by a Govt. agencyGift deedTax-paid receipt(for the current year)Encumbrance Certificate(Form-15) (up to to the month of the application)Self-attached sketch showing overall and bifurcation area details.
4.	Through a court Decree	court DecreePrevious title deed or possession certificate in case of allotment by a Govt. agencyTax-paid receipt(for the current year)Encumbrance Certificate(Form-15) from the date of sale deed or possession certificate to the current dateSelf-attached sketch showing overall and bifurcation area details.
5.	Through Partition/Release deed	Partition/Release deedPrevious title deed or possession certificate in case of allotment by a Govt. agencyTax-paid receipt(for the current year)Encumbrance Certificate(Form-15) from the date of sale deed to the current dateSelf-attached sketch showing overall and bifurcation area details.

Charges for Khata  Bifurcation 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.

Challenges and Tips

Challenges

• Delays in Processing: The process can be time-consuming, and delays are common.
• Document Verification: Ensuring all documents are accurate and complete can be challenging.
• Site Inspections: Unanticipated issues during site inspections can cause delays.

Tips

• Seek Professional Help: Engaging a property lawyer or a professional consultant can help you navigate the process smoothly.
• Stay Informed: Regularly follow up with BBMP officials to ensure your application is progressing.
• Keep Records: Maintain copies of all documents and receipts submitted during the process.

Contact Information of Khata Bifurcation Offices in Bangalore

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

Conclusion

Khata bifurcation in Bangalore is a crucial process for property owners looking to subdivide their property. While the process can be complex and time-consuming, understanding the steps involved and preparing adequately can make it more manageable. 

By ensuring legal recognition, simplifying tax assessments, and facilitating property transactions, Khata bifurcation plays a vital role in effective property management. If you’re considering bifurcating your property’s Khata, it’s advisable to seek professional guidance to navigate the process efficiently.

Frequently Asked Questions on Khata Bifurcation in Bangalore

Q1. What is a Khata and why is it important for property owners in Bangalore?
Ans1. A Khata is a crucial municipal record certifying property ownership details in Bangalore. It’s essential for property tax assessments, legal transactions, and compliance with regulations.

Q2. What are the types of Khatas in Bangalore, and how do they differ?
Ans2. In Bangalore, there are primarily two types of Khatas: A Khata and B Khata. A Khata signifies full compliance with regulations, while B Khata indicates partial compliance or pending issues with the authorities.

Q3. When is Khata bifurcation necessary for property owners in Bangalore?
Ans3. Khata bifurcation becomes necessary when a property owner wants to divide their property into smaller units, whether for inheritance purposes, joint ownership, or development projects.

Q4. What is the process of Khata bifurcation in Bangalore?
Ans4. The process involves preparing necessary documents like sale deeds, partition deeds, and obtaining approvals from BBMP or other relevant authorities. It includes application submission, verification, and issuance of separate Khatas for each unit.

Q5. How does Khata bifurcation impact property transactions and legal recognition? Ans5. Bifurcating a Khata ensures each property unit has its legal recognition, simplifying transactions such as sales, transfers, and mortgage processes.

Q6. What are the benefits of having an A Khata over a B Khata in Bangalore?
Ans6. Properties with an A Khata have full legal validity, making it easier to obtain construction approvals, trade licenses, and bank loans compared to properties with a B Khata.

Q7. What documents are required for Khata bifurcation in Bangalore?
Ans7. Required documents include sale deeds, partition deeds, tax-paid receipts, encumbrance certificates, and approvals from authorities like BBMP, BDA, or BMRDA, depending on the property type.

Q8. What challenges do property owners face during the Khata bifurcation process in Bangalore?
Ans8. Challenges include delays in processing, document verification issues, unexpected site inspection complications, and navigating bureaucratic procedures.

Q9. How can property owners expedite the Khata bifurcation process in Bangalore? Ans9. Property owners can expedite the process by seeking professional assistance, staying informed about application progress, and maintaining meticulous records of all submitted documents.

Q10. What are the implications of Khata bifurcation on property tax assessments and management in Bangalore? Ans10. Bifurcating a Khata allows property owners to manage property taxes separately for each unit, potentially optimising tax liabilities and avoiding disputes.