B Khata to A Khata at 2 percent: Bhu Guarantee 23 August 2026 deadline math

On 15 May 2026, the Karnataka government launched the Bhu Guarantee drive, a 100-day window that cuts B-to-A Khata conversion fees from 5 percent of guidance value down to 2 percent. The window closes on 23 August 2026. For Bengaluru buyers holding B-Khata properties, the math is direct. On a property with a guidance value of Rs 1 crore, the 3 percentage point reduction saves Rs 3 lakh on the conversion fee alone. After 23 August, the savings vanish.

The short answer. Karnataka launched the Bhu Guarantee scheme on 15 May 2026, reducing B-to-A Khata conversion fee from 5 percent to 2 percent of guidance value, valid till 23 August 2026. The 100-day window saves buyers Rs 3 lakh on a Rs 1 cr guidance value property. Eligibility requires valid B-Khata, approved layout, cleared tax dues, and Aadhaar eKYC. After 23 August 2026, the 5 percent rate returns.

What is the Bhu Guarantee scheme

Bhu Guarantee is a Karnataka government initiative under Section 95 of the Karnataka Land Revenue Act 1964, read with Section 45B of the Karnataka Stamp Act 1957, designed to bring un-regularised B-Khata properties into the formal A-Khata fold within a finite 100-day window. The scheme cuts the conversion fee from 5 percent to 2 percent of the current guidance value, processes applications via the BBMP-GBA digital portal, and uses Aadhaar eKYC for owner verification. The 2 percent rate is on top of the standard 2 percent registration fee, taking total statutory cost on conversion to roughly 4 percent of guidance value.

Who qualifies for the 2 percent rate

Properties qualifying for Bhu Guarantee must meet four conditions. First, a valid B-Khata authenticated on the BBMP-GBA portal. Second, an approved layout (BMRDA, BIAPPA, BBMP layout, or BDA layout). Third, property tax dues cleared up to the current cycle, with the last 3 years of receipts available. Fourth, minimum road access of 9 metres width. Properties on unapproved layouts, properties within panchayat (not BBMP-GBA) limits, and properties with active demolition or violation notices do not qualify.

What documents are needed

Why the 2 percent window matters financially

The math compounds quickly. A property with a guidance value of Rs 1 crore saves Rs 3 lakh in conversion fee under Bhu Guarantee. A property at Rs 2 crore guidance value saves Rs 6 lakh. For sellers planning to flip B-Khata stock, converting before listing also commands a higher sale price, since A-Khata properties qualify for 80 to 90 percent LTV at standard interest rates against 60 to 70 percent for B-Khata. The conversion typically lifts achievable sale price by 8 to 15 percent above an un-converted B-Khata baseline.

What happens after 23 August 2026

The 5 percent conversion fee returns. Plus, the BBMP-GBA has signalled that post-Bhu-Guarantee, B-Khata properties will face stricter scrutiny on layout violations and pending dues. The 5 percent baseline may also be revised upward in the FY27 budget. For buyers and sellers both, the 100-day window is structurally favourable, with a hard cliff at 24 August 2026.

Effect on B-Khata resale value

B-Khata resale values are likely to compress over the 100-day window, then rebound modestly post-August. The reasoning is two-sided. Sellers will price-in a portion of the saved 3 percent fee to attract buyers, narrowing their gross margin. Buyers will demand the conversion happen before transfer or insist on discount equivalent. Buyers picking up B-Khata stock during the window should structure transactions so the conversion completes before sale registration, or build the 4 percent total cost into the offer.

Wait or convert: the buyer's decision tree

For B-Khata holders, the decision is straightforward. If the property qualifies and you intend to hold or sell within the next 5 years, convert now. If the property has layout-level violations that the scheme will not cure, conversion may be premature and you should first address the underlying issue. If you are buying a B-Khata property, structure the transaction so the seller completes Bhu Guarantee conversion before sale deed registration. The 100-day window is unforgiving.

Buyer checklist for Bhu Guarantee transactions

1. Authenticate B-Khata on the BBMP-GBA portal at greaterbengaluru.in
2. Confirm the plot lies within BBMP-GBA limits, not panchayat
3. Verify the layout has BMRDA, BIAPPA, BBMP, or BDA approval on file
4. Check road access width minimum 9 metres at the plot frontage
5. Pull last 3 years of property tax receipts and verify continuity
6. Confirm no pending demolition or violation notices on the property
7. Pull a 13-year encumbrance certificate from Kaveri

For complementary regulatory context, see our coverage of the April 2026 guidance value playbook, the Karnataka Land Guarantee scheme, and K-RERA Section 18 buyer protection.

Frequently asked questions

Who qualifies for the Bhu Guarantee 2 percent conversion?

Properties with valid B-Khata, an approved layout, road access of minimum 9 metres, and tax dues cleared up to date qualify. Properties on unapproved layouts, properties within panchayat limits, and properties with active demolition notices do not. Aadhaar eKYC of the current owner is mandatory. The B-Khata must be authenticated on the BBMP-GBA portal before submission.

What documents are required for B to A Khata conversion?

Aadhaar of current owner, current B-Khata extract, latest property tax receipt (last 3 years), sale deed, encumbrance certificate covering the last 13 years, sanctioned plan or layout approval, NOC from any pending notices, and Form A application. The application is filed on the BBMP-GBA portal with eKYC verification.

Should I wait or convert before 23 August 2026?

If you can complete the conversion before 23 August 2026, the math heavily favours converting now. On a Rs 1 crore guidance value property, the 3 percentage point fee reduction saves Rs 3 lakh. For properties priced significantly higher than guidance value, the savings are larger. After 23 August 2026, the rate reverts to 5 percent of guidance value.

Will my home loan be easier after conversion?

Most major banks remain conservative on B-Khata, with only SBI, HDFC, and a few others lending against B-Khata properties, and typically at lower LTV ratios (60 to 70 percent). Post-conversion to A-Khata, the same property qualifies for 80 to 90 percent LTV at standard interest rates. The conversion materially improves your borrowing capacity.

Last updated 27 May 2026. By the PropNewz Team.