In 2025, Bengaluru’s real estate market was significantly shaped by the Karnataka government’s introduction of the e-Khata system, a reform designed to digitise property records and speed up ownership transfers, according to real estate experts. While touted as a game-changer for homebuyers and developers, experts noted that its on-ground impact has been mixed, promising streamlined records in the long term but causing short-term disruptions in registrations, tax assessments, and transactions.
The e-Khata system was introduced to replace manual khata certificates (legal land ownership documents) issued by the city’s former municipal body, Bruhat Bengaluru Mahanagara Palike (BBMP), with the promise of quick, online issuance within 48 hours. For homebuyers, it was expected to bring clarity to ownership records, reduce fraud, and streamline property transactions. For developers, especially those handling large projects, digitisation was meant to cut paperwork and speed up registrations.
Nearly a year after its rollout in October 2024, however, homeowners said the process has fallen short of expectations. Instead of a seamless digital experience, many are facing incorrect entries, delays and repeated visits to civic offices.
Errors and initial delays homebuyers faced
Several Bengaluru residents had complained that e-khatas were being issued with basic mistakes, wrong spellings of names, incorrect built-up areas, or missing parking details, with no online mechanism to исправ them, according to a Hindustan Times Real Estate report.
“Many e-khatas are being issued with basic spelling or data errors, and there’s no online correction feature,” Dhananjaya Padmanabhachar, director of the Karnataka Homebuyers Forum, said. “Buyers have no option but to visit the BBMP office, often multiple times, to get these mistakes fixed.”
For many, the process had turned out to be far more time-consuming and expensive than advertised. Though the official online fee is ₹125, homeowners said they often ended up hiring agents to navigate paperwork and follow-ups. One Reddit user shared that a spelling error stalled their application for weeks until an agent “sorted it in two days for an extra payment.”
Tax shocks and parking disputes
Beyond name errors, inaccuracies in property size declarations had opened up a new set of problems, unexpected tax demands.
Kiran Kumar, vice president at Hanu Reddy Realty, cited a case where a resident had self-declared their car parking area as 500 sq ft while filing property tax. On verification, authorities found it exceeded 800 sq ft and issued a notice seeking additional tax.
Such cases presented heightened challenges for homeowners, who feared that even minor discrepancies could lead to unexpected liabilities. Brokers said buyers are now more cautious, double-checking every detail before migrating to the new system.
Registrations take a hit, developers flag distress
The developers’ body CREDAI Bengaluru told Hindustan Times Real Estate in December 2024 that the sudden switch had caused “significant distress” to both buyers and builders. Amar Mysore, former president of CREDAI Bengaluru, had pointed out that the property registrations worth nearly ₹8,000 crore had been delayed since October 2024. The government should have implemented the e-khata service in a phased manner,” Mysore said. “The sudden implementation has led to an almost 60% dip in the city’s property registrations.”
Developers said delays in khata updates and registrations had slowed cash flows and pushed back project handovers, even as demand in the city remains strong, according to Hindustan Times Real Estate report.
The impact of the digital push
The e-Khata reform became central to the city’s effort to modernise property records with BBMP’s decision to make e-Khata mandatory for all online building plan applications from July 1, 2025.
The digitisation push also gained momentum with the Karnataka cabinet’s decision to regularise B-Khata properties issued up to September 2024 and upgrade them to A-Khata status.
B-Khata properties, which include buildings in unauthorised layouts or without approved plans and occupancy certificates, have long existed in a legal grey zone. Once regularised, owners will be issued valid ownership certificates, unlocking access to civic amenities and formal financial systems.
To further strengthen service delivery, the state is now looking at institutional reforms around e-Khata processing itself. In December 2025, Additional Chief Secretary of the Urban Development Department, Tushar Giri Nath, had stated that the government plans to introduce passport-seva-style centres to streamline e-Khata services. The model, he said, is designed to ensure smoother and faster processing of applications, reducing delays and bottlenecks, and eliminating the hurdles citizens currently face when obtaining electronic khatas. examining institutional reforms related to
To date, Bengaluru’s apex body, responsible for coordinating and supervising the activities of the city corporations, the Greater Bengaluru Authority (GBA), has said that it has already issued more than 8 lakh e-Khatas across its city limits.