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The elusive 'A' Khata is now a betterment charge away

a-rupee-in-time-saves-nine-1Many of you who own properties on the outskirts of the city have long since reconciled to being placed in the 'B' khata register for lack of verification by governmental bodies. Knowing how long such processes take, you have worked with the disadvantages of being in this limbo state.

Well, all is poised to change – The Bruhat Bangalore Mahanagara Palike (BBMP) council recently announced approved slabs for betterment charges to be collected from owners of revenue properties that are utilized for non-agricultural purposes.

This essentially will help regularize converted property and facilitate the issue of an 'A' khata. Most of the properties based on the outskirts of the city now stand to benefit from this scheme. Revenue sites or those that do not have conversion clearance will not be able to take advantage of this scheme.

What this means:-
If your agricultural property has been converted and is being utilized for non-agricultural purposes, you may pay the betterment charge and get 'A' khata for it, rather than be placed in the 'B' register pending approval. The same will go for properties denotified or granted by the:

Bangalore Development Authority
Karnataka Industrial Area Development Board
Karnataka Housing Board and other government agencies

How this benefits you?
You will secure an 'A' khata which is the single most important document for any transaction financial or documentation-related for your property. It is essential for the payment of tax as well. With this in hand, you will also be able to get a building plan approval from the BBMP With the khata in hand, you will be able to apply for bank loans for development of your property With an 'A' khata in hand, you will be able to avail of e-khata benefits

What are the charges and how to pay?
Initially, a flat rate of Rs. 350 per square metre (sqm) for properties measuring up to 1,000 sqm and Rs 300 for anything above was arrived at. This was soon revised to Rs 200 per sqm in 100 core wards and Rs 250 per sqm in the remaining 98 wards.

You may choose to pay these charges as a one-time fee or in in four instalments. If you choose to go with instalments, your payment will incur 1.5 % interest each month. How were the charges arrived at:-

Officials from the BBMP departments have reportedly said that these slabs of payment were arrived at based on how much is already spent and will be spent for the development of infrastructure in all of these properties which lie on the outskirts of the city.

Only those lands that have express permissions for non-agricultural use and/or which have been denotified by governmental agencies such as BDA, KIADB, KHB and other such government organizations will fall under the realm of this scheme.

Of course the move to collect this revenue will also benefit the civic body. The BBMP hopes to rake in Rs 200 crore in betterment charges. This ensures that areas so far not privileged enough to have their amenities developed, will be seeing an overall improvement in their localities.

Whether the process for payment of betterment charges will be different under this scheme is yet to be known as is the method of going about the whole requirement. Once underway it will definitely give real estate development a much needed fillip.

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