Khata freeze leaves thousands of property owners in legal and financial limbo

Bengaluru’s khata freeze leaves thousands unable to update property records, pay taxes, or secure loans, stalling real estate deals and revenue

Thousands of property owners in Bengaluru have been left in limbo following the freeze on khata services, a move that has disrupted routine property transactions and created widespread uncertainty in the city’s real estate market.

Khata documents, which serve as the official record of property ownership and are essential for paying taxes, securing loans, and completing registrations, have been stalled due to administrative and legal disputes between the Bruhat Bengaluru Mahanagara Palike (BBMP) and the Bangalore Development Authority (BDA). The freeze has particularly affected bifurcation requests, conversions from B‑Khata to A‑Khata, and approvals for vacant plots, leaving homeowners unable to regularise or transact their assets.

Officials have cited jurisdictional overlaps as the reason, with properties developed by the BDA but later handed over to BBMP caught in a tussle over which authority has the right to issue khatas. The Greater Bengaluru Authority’s town planning wing has taken over responsibility, but approvals remain stalled until zoning rules are clarified.

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The impact has been severe: residents cannot sell or mortgage their properties, banks are refusing loans against homes without valid khatas, and the city is losing out on significant property tax revenue, estimated at over ₹5,000 crore. Real estate transactions have slowed sharply, with buyers hesitant to invest in properties lacking updated records. While the government has promoted digitisation through e‑Khata systems, stricter compliance checks have slowed approvals, adding to the frustration of applicants.

Resident welfare associations have demanded urgent intervention, arguing that the freeze undermines both citizen rights and the city’s financial health. The Karnataka government is expected to step in to resolve the dispute, but until a clear policy decision is announced, thousands of property owners remain trapped in legal and financial uncertainty, highlighting the urgent need for clarity in Bengaluru’s property governance.  

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