Rebate for converting B-Khata to A-Khata hits corporation budgets
The recent announcement of a 60% rebate for converting B-Khata to A-Khata has disrupted the budget estimates of Bengaluru's five corporations. The fee reduction from 5% to 2% is intended to encourage participation in the scheme, which has seen limited success so far. Corporations are now planning special drives to double their conversion targets to mitigate the impact on their revenues.
- ▪The rebate was announced by Deputy Chief Minister D.K. Shivakumar on May 13.
- ▪Only 949 B-Khatas have been converted to A-Khatas since the scheme's introduction, generating ₹52.35 crore.
- ▪The estimated revenue from the Khata conversion scheme is expected to drop from ₹1700.5 crore to ₹680.5 crore due to the rebate.
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The 60% rebate in the fees for the conversion of B-Khata to A-Khata, announced by Deputy Chief Minister and Bengaluru Development Minister D.K. Shivakumar on May 13, has upset the Budget Estimates (BE) of the five corporations presented only over a month ago.Previously, the fee was set at 5% of the guidance value of the plot to be regularised, but it has now been reduced to 2% for a 100-day window due to a lack of interest in the scheme. Bengaluru central corporation imposes a 2% tax on Khatas in a bid to boost revenue, widen property tax baseEver since the scheme was introduced in the Greater Bengaluru Area (GBA) on October 15, 2025, only 949 B-Khatas have been converted to A-Khatas, collecting a revenue of ₹52.35 crore.
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