On a one crore rupee guidance value, the gap between doing your khata paperwork before August and after it is about three lakh rupees. That is the arithmetic behind a scramble playing out across Bengaluru's older layouts this monsoon. Deputy Chief Minister D.K. Shivakumar, announcing what the government has branded the Bhu Guarantee, opened a 100 day window in which the fee to convert a B Khata property to A Khata drops from 5 percent of guidance value to 2 percent. The window runs from mid May to August 23, 2026, and then the rate goes back up. For anyone buying an older Bengaluru home on a B Khata, this is the difference between a property you can finance and build on and one that stays financially stuck.

The short answer. During the special drive, the B Khata to A Khata conversion fee is 2 percent of guidance value instead of the usual 5 percent, a window reported to run until August 23, 2026, after which it reverts to 5 percent. The stakes are high because lenders generally do not finance B Khata properties, building plan sanction is difficult, and B Khata homes sell at a discount, whereas A Khata is what makes a property loanable, plan sanctionable, and fully resaleable. The trade-off for a buyer: converting now saves a large fee and unlocks a home loan, but not every property qualifies, and getting an e Khata alone does not fix a B Khata, so verify the exact status before you count on the cheaper rate.

What has actually changed, and by when?

The conversion fee has been temporarily cut to 2 percent of guidance value under a time bound regularisation drive. As summarised by PKP Advocates, the Bhu Guarantee drive reduced conversion fees from 5 percent to 2 percent of guidance value during a 100 day window running from mid May 2026 to August 23, 2026, after which the fee reverts to the standard 5 percent. On a property with a guidance value of one crore rupees, that is 2 lakh rupees now versus 5 lakh rupees later.

The scheme was announced by Deputy Chief Minister D.K. Shivakumar at the Greater Bengaluru Authority headquarters, positioned as a citizen guarantee with a roughly 60 percent concession on the conversion fee. Because the window is short and the saving is large, treat the deadline as real and plan backward from it rather than assuming an extension.

Why does A Khata versus B Khata matter so much to a buyer?

Because the khata status decides whether the property behaves like a normal, financeable asset. In the words of the same guide, a B Khata property cannot get a bank loan, cannot sanction a building plan extension, and faces a discount at resale, while A Khata status determines whether the property is loanable, plan sanctionable, and fully resaleable. For a buyer relying on a home loan, that is not a technicality, it is the whole transaction: if the property is B Khata, most lenders will simply decline, and you are left needing to fund the purchase yourself or walk away.

We explained the underlying distinction in our guide to A Khata versus B Khata for Bengaluru buyers. Today's development does not change what the two mean; it temporarily lowers the price of moving from one to the other, which is exactly the kind of window a buyer of an older property should exploit rather than ignore.

Does an e Khata mean the property is now A Khata?

No, and this is the single most common misunderstanding in the current rush. Digitisation changed the format of the record, not its legal grade. As PKP Advocates put it, an e Khata issued on a B Khata property is still a B Khata e Khata, because the digital format does not change the underlying register. A seller waving a freshly downloaded e Khata is not proving A Khata status, and you must read what the record actually says.

This matters because e Khata itself has become mandatory for many BBMP and GBA processes, which we covered in our note on BBMP e Khata for Bengaluru buyers. So a property can simultaneously have a valid e Khata and still be B Khata, and still be unfinanceable. Always confirm the grade, not just the existence, of the digital khata.

What does the two percent window mean in rupees?

The saving scales with the guidance value, so the more valuable the property, the more the window is worth. The table below shows the indicative fee at each rate. Treat these as illustrative arithmetic on guidance value, and confirm your property's exact guidance value and any additional charges before you budget.

Remember that the fee is only one part of the total cost, which can also include arrears of property tax, betterment charges, and incidental documentation costs, so ask the GBA counter for the full quote rather than the headline percentage alone.

This is the kind of number worth negotiating over. If you are buying a B Khata home during the window, discuss openly with the seller who bears the conversion cost, because whoever pays, converting now is far cheaper than converting later.

Which properties can actually convert, and which cannot?

Not every B Khata property is eligible, so do not assume the discount applies before you check. Conversion generally requires a clean documentary base: a registered sale deed with the full ownership chain, the current B Khata extract and tax paid receipts, an encumbrance certificate covering at least fifteen years, the deemed conversion or DC conversion order where the land was originally agricultural, an approved building plan, and completed e KYC with Aadhaar and PAN. Properties that fail these, for example those on unapproved layouts, buffer or lake bed land, or with unresolved title issues, may not qualify however attractive the fee.

This is especially relevant for plotted purchases, where khata grade and layout approval are central. If you are eyeing a plotted development such as KNS Ananta plots at Kengeri, confirm the khata grade and approval status of the specific plot rather than the layout's marketing, because the fee window helps only where conversion is legally possible in the first place.

Should you buy a B Khata property to convert it during the window?

It can be a genuine opportunity, but only with eyes open and the conversion feasibility confirmed first. The upside is real: a B Khata home is often priced below an equivalent A Khata one, and if it clearly qualifies for conversion, doing so at 2 percent can turn a discounted, hard to finance property into a normal, loanable asset at a modest cost. That is a defensible reason to consider such a purchase, provided you have checked the documents above.

The risk is buying on the assumption of easy conversion and discovering the property does not qualify, at which point you own an asset that stays B Khata, stays hard to finance, and stays discounted. So make conversion feasibility a written condition, not a hope. Where a lender is involved, remember most will not fund a B Khata purchase in the first place, so the sequencing and who converts when must be worked out before you sign anything.

What should a Bengaluru buyer do before August 23?

Move deliberately, because the deadline rewards preparation and punishes last minute scrambles:

1. Read the actual khata record and confirm whether the property is A Khata or B Khata, not merely whether an e Khata exists.
2. If it is B Khata, gather the sale deed and ownership chain, B Khata extract, tax receipts, and a fifteen year encumbrance certificate.
3. Obtain the DC conversion order and approved building plan where applicable, and complete Aadhaar and PAN e KYC.
4. Confirm the property is actually eligible to convert, ruling out unapproved layout or buffer zone problems.
5. Compute the 2 percent fee on the guidance value and agree in writing with the seller who will pay it.
6. File the conversion well before August 23, 2026, allowing time for record mismatches to be fixed.
7. If a home loan is involved, confirm your lender's stance and sequence the conversion so the property is financeable when you need it to be.

Frequently asked questions

What is the 2026 B Khata to A Khata fee concession?

Bengaluru has temporarily cut the B Khata to A Khata conversion fee from 5 percent of guidance value to 2 percent under the Bhu Guarantee drive announced by Deputy CM D.K. Shivakumar. The window runs until August 23, 2026, after which the fee reverts to 5 percent, saving about three lakh rupees on a one crore property.

Can I get a home loan on a B Khata property?

Generally no. Most banks do not finance B Khata properties, which is why A Khata status matters so much for buyers relying on a loan. B Khata homes also face difficulty getting building plan sanction and typically sell at a discount. Converting to A Khata is what makes the property loanable, plan sanctionable, and fully resaleable.

Does an e Khata mean my property is A Khata?

No. An e Khata issued on a B Khata property is still a B Khata record in digital form, and the digital format does not change the underlying grade. Always check whether the khata is A or B, not just whether an e Khata exists, before assuming a property is financeable or fully compliant.

Which documents do I need to convert to A Khata?

Typically the registered sale deed with the ownership chain, the current B Khata extract and tax paid receipts, an encumbrance certificate of at least fifteen years, the DC conversion order where the land was agricultural, an approved building plan, and completed Aadhaar and PAN e KYC. Missing or mismatched records are the main cause of delays, so assemble them early.

Last updated 2026-07-23. PropNewz Team.