Buying in Bengaluru After the 2026 Bhoo Guarantee Drive: Deviations, Khata Conversion and What to Verify
The Karnataka government launched Bhoo Guarantee, a relief programme aimed at Bengaluru owners, in May 2026. Its headline items were a wider tolerance for construction that departs from sanctioned drawings, half-price regularisation for a few months and a cheaper route to an A-Khata. Here is what remains valid in October 2026, and what anyone about to buy a flat or house with such a defect should insist on.
Four Measures, Two of Them Temporary
The drive was announced as one headline but contained distinct pieces:
- Deviation tolerance: 15% of the approved drawings, versus 5% before
- One-time settlement (OTS): regularisation charges halved in the first quarter after 15 June 2026
- Khata conversion: 2% of guidance value, instead of 5%, for the hundred days after 16 May 2026
- Cut-off: 30 September 2024 is the last B-register entry date that qualifies
Only the tolerance changes the rulebook for good. The discounts were limited-time offers, and that distinction drives pricing for anyone buying this autumn.
Where Things Stand Now
The 2% conversion rate was meant for applications made within a hundred days of 16 May 2026, and that period ran out in late August. The OTS halving applied to the first three months after 15 June 2026, up to mid-September. Both processes are open still, though they cost the standard amount.
Any seller who skipped filing in time has no discount to hand over. The full fee, and the delay that comes with it, should be argued over before a token is paid.
What a 15% Tolerance Means
A deviation is simply a mismatch between what was built on the plot and what the sanction allowed. A wall that crosses into the setback margin near the boundary is a classic case, as is a floor plate somewhat larger than drawn. When the tolerance was 5%, many such owners were unable to obtain the certificate they needed to occupy.
On 1 April 2026 a draft change to Bengaluru's building bye-laws appeared, and 15% followed. Owners within that figure can regularise on payment of a compounding fee, then seek the occupancy certificate. A floor that has no sanction at all cannot be treated this way.
Above 15%, the relief offers nothing and the occupancy certificate may be refused for good. Think of an unapproved extra storey, or one extended across most of its setbacks. The defect does not go away on sale, since each new owner takes it over.
Khata Types in Plain Words
An A-Khata goes with land that is approved and plans that are sanctioned, which is why loans, plan approvals and resale run smoothly. By contrast, a B-Khata is purely a tax record, given where approvals are flawed, for example in a layout that lacks approval. Banks frequently decline loans against it, which narrows the pool of future buyers.
An eligible property is moved to the A-register on payment of the fee. The fee is calculated on guidance value, so the difference between 5% and 2% is large. At Rs. 1 Crore of guidance value, the standard fee is Rs. 5 Lakhs and the lapsed rate would have cost Rs. 2 Lakhs.
Documents to Demand From the Seller
An unfinished fix is the seller's burden, to be completed and papered before the sale deed. These checks cover the main risks:
- Get the sanctioned drawings and ask a professional to compare the structure with them.
- Convert the difference into a percentage and make sure it stays under 15%, with no unapproved floor.
- Ask whether the occupancy certificate is in hand or still awaited.
- With a B-Khata home, verify that the B-register entry was made by the 30 September 2024 cut-off.
- Insist on the payment receipt and the converted khata in hand, not a verbal assurance.
- Review the encumbrance certificate, e-Khata and tax receipts ahead of registration.
- Make each pending step a condition of the agreement, with its cost on the seller.
Pricing a Home With a Defect
Flawed homes tend to sell for less than clean ones nearby, reflecting risk and repair expense. Now the discounts are gone, expect to pay the whole compounding or conversion fee and wait for paperwork. A seller quoting a clean rate for a B-register property expects the buyer to absorb that bill.
For new homes, a project with a sanctioned plan, a RERA number and an A-Khata avoids the issue altogether. Even within one locality, such as Whitefield, a comparison on those three points quickly narrows a shortlist.
Getting Professional Advice
Regularisation orders are revised by notification, and the fine print on eligibility can differ from what the news reported. A lawyer who handles property can read the notification that applies to a given building and match it against the papers. To look at projects with clear approvals around Bangalore, talk to our team ahead of any booking.
