BENGALURU: With banks and financial institutions facing challenges in registering sale certificates for properties under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), the BBMP Chief Commissioner has issued a circular that includes procedures for obtaining the final e-khata on behalf of banks/financial institutions, with respect to properties in the property tax records of the Corporation.
Under the SARFAESI Act, when a property is sold due to default in the repayment of a mortgage loan, the bank/financial institution executes the sale through a sale certificate after following the due process. However, since e-khata is now mandatory for property registration, the khata holder may not cooperate in such cases.
To facilitate this, banks/financial institutions are required to apply for e-khata in their name by following the process outlined on the e-Aasthi website: https://bbmpeaasthi.karnataka.gov.in
Banks and financial institutions must follow steps such as accessing the e-khata application platform, identifying the property based on the ePID, name, or search options, and entering the property tax SAS number.
Institutions must select the ‘Do not have the registered deed’ option for recording banks/financial institutions based on the sale certificate.
The institutions must upload the original sale certificate issued under the SARFAESI Act by the bank/financial institution, the registered deed in favor of the owner/khatadar, the registered mortgage deed in favor of the bank by the owner/khatadar, and an authorization letter in favor of the person duly authorized. The institutions must also upload the Encumbrance Certificate (EC) number.
The Assistant Revenue Officer (ARO) will review the recommendation. After the standard 7-day objection period, the mutation will be processed, and the e-khata will be issued in the name of the bank/financial institution, as per the rules.
This streamlined process ensures compliance with e-khata requirements while facilitating smooth transactions for properties sold under the provisions of the SARFAESI Act, claimed the Chief Commissioner.