Karnataka Halves Guidance-Value Rate for BDA House Regularisation

On 9 November 2026, Karnataka Chief Minister D.K. Shivakumar announced a 50% reduction in the percentage of the current guidance value used to calculate charges for regularising eligible houses on land acquired by the Bangalore Development Authority (BDA).

Revised rates and eligibility

The provision covers houses built on BDA-acquired land before 10 July 2008, after the final acquisition notification. Under Section 38(D) of the Bangalore Development Authority Act, 1976, sites up to 20 ft × 30 ft will be charged 5% of guidance value, down from 10%. For sites above 40 ft × 60 ft and up to 50 ft × 80 ft, the rate falls from 50% to 25%, plus the applicable penalty. Corner sites attract twice the applicable rate.

The provision was introduced in 2020 and was expected to benefit around one lakh property owners. Applications are being accepted online until 17 December. Applicants must provide documents including sale deeds, encumbrance certificates, property tax receipts and Khata documents, and pay charges within two months of receiving a notice.

Exclusions

Properties on land reserved for parks, playgrounds or open spaces are excluded, as are sites connected with national highways and bypass roads, and properties affected by interim court orders. The BDA has warned that it may take legal action against occupants who do not regularise eligible properties.

Important Facts for Exams

• Land acquisition route: For development schemes, the BDA can acquire land by voluntary agreement or compulsorily through procedures modelled on the Land Acquisition Act, 1894.
• Betterment tax: The BDA may levy betterment tax when executing a development scheme raises the market value of land within its scheme area.
• Guidance value and market price: In Karnataka, guidance value is the government-notified benchmark for assessing stamp duty and registration charges; it may differ from a property's negotiated market price.
• Khata and ownership: A Khata is a municipal property-tax assessment entry, not a title deed; its existence alone does not conclusively establish ownership.