The Karnataka Legislative Assembly on 21 August 2026 passed the Karnataka Municipal Corporations (Amendment) Bill, 2026, clearing the path for lakhs of property owners in unauthorised layouts across the state to convert their B-Khata records to A-Khata — granting them full, legally recognised ownership rights for the first time in decades.

What the Bill Does

The amendment targets properties in unauthorised layouts that have existed across Karnataka's urban areas for the past three to four decades. These properties were previously ineligible for A-Khata due to the absence of a legal provision, leaving owners in administrative and legal limbo despite occupying their plots for generations.

A key provision of the Bill creates a formal legal mechanism for roads within unauthorised layouts — which often remain recorded in the names of original landowners — to be officially declared public roads and transferred to the concerned municipal corporation or municipality. Once roads are formally recognised, eligible plots and houses in such layouts can apply for A-Khata, subject to applicable rules and conditions.

What the Government Said

Introducing the Bill in the Assembly, Minister Krishna Byre Gowda framed it as part of the government's and the Chief Minister's commitment to a 'Land Guarantee' for every property owner in Karnataka.

'The amendment to Section 284 of the Municipal Corporations Act is being brought in to address the fundamental problems associated with unauthorised layouts and provide a legal pathway for resolving the difficulties faced by property owners,' he said.

Gowda acknowledged that previous governments had failed to act decisively. 'Despite knowing that such developments were unauthorised, previous governments did not take adequate steps to prevent them,' he said, adding that layout developers also lacked awareness of the legal restrictions. He noted that many such layouts were developed without roads of adequate width, electricity connections, underground drainage, reliable drinking water supply, or storm-water drainage.

'In effect, poorly planned and unregulated layouts were created, leaving property owners without secure and legally recognised ownership of their properties. They have been caught in a difficult situation, though no fault of their own,' Gowda said.

Impact on Citizens

The conversion from B-Khata to A-Khata carries significant practical benefits. A-Khata holders will find it easier to access housing and property loans from banks. The change will also remove existing hurdles in obtaining building plan approvals and Occupancy Certificates (OCs), subject to statutory requirements.

The system has already been implemented in Bengaluru and, on the direction of the Chief Minister, is now being extended to municipal corporations, municipalities, and Gram Panchayat areas across Karnataka.

Preventing Future Violations

The government stated that in 2024, it took a firm position against the creation of new unauthorised layouts, putting in place measures to prevent fresh violations. The Bill thus addresses two fronts simultaneously: providing a regulated solution for eligible legacy cases while closing the door on future unauthorised developments.

With the Assembly's approval, the amendment is set to bring legal clarity to one of Karnataka's most persistent urban governance challenges — and the next step will be the framing of rules and conditions under which eligible property owners can initiate the conversion process.