Converting B-Khatas to A-khatas: The 3-tier system

In a move to mop up revenue for the government, the BBMP (Bruhat Bangalore Mahanagara Palike) has come up with a three-tier system for collecting the betterment charges that were stopped since 2007. The betterment charges are collected from the revenue site owners to transfer their B Khatas to A Khatas.

As per market news, the Palike will soon send the proposal to the government, where the matter will be discussed and finalized after much scrutiny, and checking its feasibility. According to the officials of Palike, a quick decision of the government will lead to collection of the fee in the next three months.

The charges

The BBMP has finalized to round up Rs 344 per sq meter from all the revenue sites that come under the TMC and CMC areas. Rs 430 per sq meter will be charged from the revenue sites falling under the 111 villages and gram panchayats. RS 100 per sq meter will be charged from the site owners that fall under the erstwhile BBMP’s 100 wards.

As a relief to the property owners, the BBMP will accept 4-5 installments, within a year. Under any circumstance, if an owner fails to make payment for the betterment charges within a year, 1.5 percent monthly penalty will be charged for the delay. As per BBMP officials, A Khatas have been issued to more than 25000 properties that did not pay betterment charges, resulting in loss of the BBMP.

Financial crisis

The Palike is reeling under financial crisis for quite sometime now. To bail it out of its monetary woes, the government previously recommended the Sakrama scheme and now the collection of development fees from the dwellers of illegal layouts.

If approved by the government, the scheme would give way to a huge amount, which will eventually become a boon for the cash starved BBMP. According to market reports, nearly 5 lakh properties in Bangalore are not legal and their betterment charges are still pending.