Bengaluru's One-Time Settlement Scheme for Setback Violations: What the June 15 Window Actually Offers

On 13 May 2026, at the Greater Bengaluru Authority headquarters, Deputy Chief Minister DK Shivakumar announced a One-Time Settlement scheme that thousands of Bengaluru homeowners have effectively been waiting for. From 15 June, owners of properties with building-rule violations, including setback shortfalls, can apply to regularise them, with a discount for moving early. For a buyer, the scheme could turn a hard-to-sell, violation-affected property into a cleaner asset, but the details and the honest caveats matter enormously.

The short answer. Bengaluru's One-Time Settlement scheme, announced 13 May 2026, opens for applications on 15 June for a three-month window, offering a 50 percent discount to early applicants and concluding by June 2027 (The News Minute). It includes a 15 percent setback relaxation and a 60 percent concession to convert B-Khata to A-Khata, letting eligible owners pay 2 percent of guidance value instead of 5 percent. The government stresses it is not legalising illegalities.

What did the May 13 announcement actually contain?

The announcement, made by DK Shivakumar at the Greater Bengaluru Authority headquarters on 13 May 2026, set out a regularisation package for properties with building-rule violations. Coverage of the housing-relief measures describes a One-Time Settlement scheme alongside broader property-regularisation steps, with roughly 23 lakh property records delivered online and a large stock of A-Khata and B-Khata properties across the city. The package combines a setback relaxation, regularisation charges with an early-applicant discount, and a concession to convert B-Khata properties to A-Khata, all within a defined application window.

How does the One-Time Settlement scheme work, and what are the dates?

Applications open on 15 June 2026 for a three-month window, with the scheme structured to conclude by June 2027. The headline incentive is a 50 percent discount on the regularisation charge for owners who apply within the early window, which front-loads the benefit to encourage quick uptake. For a buyer, the dates are the critical operational detail: the discount is time-bound, so a violation-affected property's regularisation economics are best within the early application period. Confirm the exact start date, cut-off and eligibility criteria on the official Greater Bengaluru Authority notification before relying on the timeline.

What setback and FAR relaxations are on offer?

The scheme includes a 15 percent setback relaxation within the legal framework, which addresses one of the most common violations in Bengaluru, where owners built closer to plot boundaries than the sanctioned plan allowed. This sits alongside the existing regulatory framework, which already permits a degree of setback relaxation for smaller residential sites. For a buyer, the practical question is whether a specific property's setback shortfall falls within what the scheme can regularise. A shortfall within the relaxation band is fixable under the scheme; one beyond it may not be, which is why the exact violation must be measured against the rules.

What does the 60% B-to-A Khata concession mean for my property?

This is among the most valuable elements for buyers. The package reportedly offers a 60 percent concession on the cost of converting a B-Khata property to A-Khata, letting eligible owners pay 2 percent of the guidance value instead of the usual 5 percent. The distinction matters because A-Khata properties enjoy cleaner access to home loans, building approvals and resale, while B-Khata properties face restrictions on all three. For a buyer considering a B-Khata property, the concession could materially improve its value and liquidity, but only if it qualifies and the conversion is actually completed.

Does regularization make a violation-affected home safe to buy?

A home is safe to buy only once it qualifies for regularisation and the seller completes it. Until then, the buyer carries the risk, so make regularisation a written condition of sale.

What documents do I need before June 15?

To assess and use the scheme, a buyer or owner should gather the sanctioned building plan, the latest property tax receipts, the current khata document, the sale deed and encumbrance certificate, and an accurate measurement of the actual construction against the sanctioned plan to quantify the violation. Having these ready before the 15 June opening allows a clean, early application that captures the 50 percent discount. For a buyer mid-purchase, obtaining these from the seller and verifying the violation type is the essential due diligence before committing to a violation-affected property.

Who should use the scheme, and who should still walk away?

Owners of properties with setback or khata issues that fall within what the scheme can regularise should strongly consider applying early to capture the discount and clean up the title. Buyers eyeing a B-Khata or minor-violation property can use the scheme to negotiate, making completed regularisation a condition of sale. But a buyer should still walk away from a property whose violations fall outside the relaxation band, or where the seller refuses to complete regularisation before sale, because an unregularisable violation remains a long-term liability regardless of the scheme.

Buyer checklist for the OTS scheme in 2026

1. Confirm the property's exact violation type and extent.
2. Check eligibility under the OTS rules on the GBA notification.
3. Calculate the regularisation charge with and without the 50 percent discount.
4. Confirm the B-Khata to A-Khata conversion cost under the concession.
5. Verify the application window dates.
6. Keep all approval, tax and khata records ready.
7. Get the regularisation completed in writing before completing purchase.

Frequently asked questions

When can I apply for the OTS scheme?
Applications open on 15 June 2026 for a three-month window, with a 50 percent discount for early applicants and the scheme concluding by June 2027 (The News Minute). Confirm the exact cut-off date and eligibility on the official Greater Bengaluru Authority notification before relying on the discount, since announced details can shift.

Does the scheme fix a B-Khata property?
The package includes a concession reported at 60 percent to convert B-Khata to A-Khata, letting eligible owners pay 2 percent of guidance value instead of 5 percent. A-Khata matters because it unlocks cleaner loans and resale. Verify your property's eligibility and the exact charge before treating any B-Khata home as fixable.

Is it safe to buy a home with setback violations?
Only if the property qualifies for regularisation under the scheme and the seller actually completes it. Until the One-Time Settlement is approved for that specific property, you carry the violation risk. Make completed regularisation a written condition of the sale rather than buying on a promise that it will be done later.

What is the catch with the OTS scheme?
The scheme is time-bound, so the discount expires, and the government has stressed it is not legalising illegalities, meaning it regularises past violations rather than guaranteeing future compliance. Announced details can also change before the final notification, so verify the rules on the official GBA notification before acting on them.

Last updated 31 May 2026. PropNewz Team.