60% rebate spurs B-Khata conversion, but fails to attract substantial interest
When the conversion was first announced, the fixed charges were 5% of the guidance value in the area. However, a poor response prompted the government to reduce the charges to 2% and set August 23 as the deadline for the rebate period
The Bengaluru-Khata (B-Khata) to Affordable Residential Property (A-Khata) conversion scheme has seen a surge in applications, with 13,000 applications received in the last five days, according to Greater Bengaluru Authority (GBA) data. The total estimated revenue from these applications is ₹402.21 crore. However, only 10% of B-Khata property owners have opted for conversion, despite a 60% rebate on conversion charges.
When the scheme was initially announced, the fixed charges were 5% of the guidance value in the area. Following a poor response, the government reduced the charges to 2%, with the rebate period ending on August 23. The conversion scheme will now continue, but with charges returning to 5% of the guidance value.
Bengaluru North City Corporation received the most applications, with 17,460 requests, estimated to generate ₹115 crore in revenue. This amount falls short of the corporation's budgeted estimate of ₹680 crore. The north corporation, followed by the west corporation, which received 17,104 applications worth ₹99.30 crore, and the central corporation, which received 591 applications.
Corporation commissioners have noted that citizens view the conversion charges as high, leading to a lack of enthusiasm. Some applicants have withdrawn their applications upon discovering the charges. Additionally, many have already built houses on B-Khata properties, making conversion only a process of regularising the land, without altering the structure of the house.
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