The implementation of the e-khata system in Bengaluru has unearthed widespread property tax evasion, with close to five lakh properties found misreporting critical details. Many of these properties were either paying residential tax for commercial premises or under-declaring their built-up areas, thus evading rightful taxation. The Bruhat Bengaluru Mahanagara Palike (BBMP) has already recovered ₹500 crore in dues and anticipates an additional ₹500 crore as verification continues.
Launched on October 1, 2024, the e-khata system was designed to increase transparency and accountability in property ownership records. Within nine months, over 5.5 lakh final e-khatas have been issued, and draft e-khatas for 25 lakh properties are available online. The BBMP has mandated that all properties within its limits must obtain an e-khata, which requires owners to submit documents including Aadhaar, sale deed, property tax ID, BESCOM number, and a photo of the property.
This initiative is enabling accurate assessment of property size and usage, uncovering large-scale under-reporting, especially in commercial hubs like IT parks and malls. Special Commissioner (Revenue) Munish Moudgil stated that numerous property owners misclassified their properties to reduce tax liabilities.
Despite 25 lakh properties listed, BBMP collects taxes from only around 20 lakh. In 2024–25, about 3.5 lakh property owners defaulted, including 1.7 lakh long-term defaulters, with dues amounting to ₹390 crore.
So far in 2025–26, BBMP has collected ₹2,966 crore in property taxes out of a ₹6,256 crore target. Officials believe e-khata verification can bring in an additional ₹1,000 crore.