Yes you have heard it right, for the time being BBMP is not accepting any betterment charges, which is the only qualifying parameter for obtaining A Khata, but the amendment will soon start by BBMP to ease the A and B-Khata controversy.
My suggestion is: If u r NRI (not residing locally) please go for the approved and clear property.
And if u are locally residing please dont distinguis between A and B. So why I am saying this the local people will have time to do thoroug (best) legal verification before purchse. What I am saying is not all the B property have the legal issue. If u think so deep even Vidhana soudha and high court and all the important areas in Bangalore like MG Road and Brigade road are b-khatha because these are not developed thru any approval of the boards they just evolved thru time. I think this differnce should go easily after some time (it just matter of time untill everthing merges). This is problem in India every where 1st develop then define the standards (it is all about govt). So if property is in good location and nad have good/all civic facilities ..etc and other legal things are fine other than A or B khatha go for it. what ever may be khatha do due clear check before going to say yes.
If its falls under panchayath then you can get plan approval from them. If its comes under BBMP limits and your khatha is "B" then they are not going to approve your plan.
B-khata is just a register maintained by the BBMP to collect taxes from the revenue property holders. B-Khata is not considered as a valid Khata extract.
Conversion is a legal process by which the property owner changes the use of the land from agriculture to non agriculture purpose. It is also called Change of land use.