Buying property in Gram Panchayat
4 years ago
I am planning to buy a 1RK/Studio apartment of 306 Square Feet in Electronic City Phase II, Bangalore, The area comes under Gram Panchayat. It is B Khata and E Khata. The building is constructed by a single owner and has agreed to sell it to me with the rate of 2777 per sqft. He has all the documents except Taxation document after 2016 as he said there has been a dispute where BBMP was planning to take the area under him as gram panchayat was not able to handle it. But the process is still going on. And because of that only gram panchayat is not collecting Tax as instructed by BBMP. Also, he said as the property comes under Gram Panchayat, OC is not available. Please suggest if I should invest in the property or it will be a high risk for me? Thank You
Shreyash Mohta
Responded 4 years ago
Rameshwar Dadhe
Responded 4 years ago
A Khata is essentially a revenue document, detailing the assessment of a property, recording details about the property such as size, location, built up area and so on for the purpose of payment of property tax.
It is also a kind of identification of the person who is primarily liable for payment of property tax. It is one of the required documents in case you require a building licence, trade licence or loan from banks or any other financial institutions.
What is the difference between an A Khata and B Khata?
What any property buyer should know while buying property in Bangalore is that it should have A khata.
An A khata means you are buying a property that is legal, and it will allow you to construct on it and obtain a trade or building license. Here are some further details on the difference between A Khata and B Khata.
Then how did the term B Khata come into being?
Well in 2007 when BBMP came into being 2 things were apparent:
1) There were many properties that fell under its jurisdiction that were illegal constructions
2) There was a need for an uniform taxation policy
Regarding the former the BBMP found that these illegal constructions were enjoying civic amenities without paying taxes. While regarding the latter, there was a need to consolidate the tax collection process to make it simpler which was earlier collected by 3 different bodies.
Now, the newly formed BBMP had the power to levy taxes on the aforementioned illegal constructions. The taxes collected from these properties were recorded in a register known in common parlance as B register and the khata issued therein was known as a B khata.
Thus anyone having a B khatha essentially is a non BBMP approved construction. Hence it is not advisable to buy such properties.
However, it is only fair to mention that any B khata property can be converted into an A khata property.
Transfer of property to wife after demise of husband
Path to reach home
Property disputes
Neighbour Water leakage
NOC FROM OTHER FLOOR OWNERS
