Bengaluru: The rollout of the mandatory e-Khata system for property registrations in the Bruhat Bengaluru Mahanagara Palike (BBMP) area has resulted in a substantial decline in property transactions, particularly impacting the sale of new apartment flats. Recent data indicates that registrations at sub-registrar offices have dropped by a staggering 60 per cent.
Launched by the Revenue Department, the e-Khata initiative aims to combat fraudulent property dealings linked to counterfeit documents. This system integrates the BBMP website with the Kaveri-2 software to streamline the registration process.
What has changed after the implementation of E-khata?
Under the previous system, builders would complete construction and secure an Occupancy Certificate (OC) from the BBMP before registering flats in the names of buyers. After purchasing, buyers would then apply for e-Khata under their names. However, the new regulations mandate that e-Khata must now be obtained prior to any property registration. Consequently, builders must first register the e-Khata for each flat in their name before transferring ownership to buyers.
While the initiative aims to reduce fraudulent transactions, many builders are facing significant obstacles due to the BBMP’s inadequate infrastructure, leading to a near halt in flat registrations, according to local residents.
Server issues leading to delays in property registration
Builders seeking to obtain e-Khata from Assistant Revenue Officer (ARO) offices are reporting delays attributed to server issues. This situation has heightened frustration among property buyers, especially non-resident Indians (NRIs), who are struggling to finalise their purchases. Leading construction firms have expressed concerns that the e-Khata requirement is impacting not only property registrations but also the ability to secure mortgage loans, release mortgaged properties, and register education loans and partition deeds.
Real estate developers, who typically mortgage properties to finance the construction of apartments and commercial complexes, are also feeling the impact of the e-Khata requirement. Developers must secure an e-Khata for each flat before they can release it from mortgage obligations. In light of these challenges, representatives from real estate companies are planning to meet with the Inspector General of Registration and the Commissioner of Stamps to discuss possible solutions.
