Property - no plan layout is it safe

Dear Sir,

The most critical issue here is the absence of a sanctioned building plan from the planning authority (BBMP or Bangalore Development Authority). Without an approved plan, the building is treated as unauthorized construction. This means the structure could be in violation of zoning laws, setback rules, or floor-area limits. In such cases, authorities have the power to issue notices, impose penalties, or even order demolition of illegal portions.

An e-Khata property is often different from an “A-Khata” property. While e-Khata allows payment of property tax, it does not regularize illegal construction. Banks are usually reluctant to provide home loans for such properties, and even if some lenders agree, it indicates a higher risk profile. Resale value and future marketability also become difficult, as buyers and banks prefer fully compliant properties.

Dear client,

An e-Khata only reflects that the property is recorded in municipal records for tax purposes. It does not confirm legality of construction. If the building has been constructed without a sanctioned plan/layout approval, it may be treated as an unauthorized construction.

Such properties can face:
1. Demolition or penalty proceedings by municipal authorities
2. Difficulty in obtaining bank loans
3. Issues in resale or transfer
4. Problems in getting occupancy certificate (OC) or completion certificate (CC)

Due Diligence Required:

Before investing, ensure:
1. Verification of sanctioned building plan from the local authority
2. Check for Completion Certificate.
3. Title verification through an advocate (chain of documents, encumbrance certificate)
4. Confirmation that the property complies with local municipal laws

Mere availability of e-Khata is not sufficient to establish legality. Purchasing a property without an approved plan/layout is not considered safe, and it is advisable to avoid such investment unless the deviations are regularized and proper approvals are obtained.

For further legal guidance contact an Advocate.