E-Khata, Kaveri 2 changes disrupt property transactions in Belagavi; Shettar seeks urgent intervention

Belagavi: Belagavi MP Jagadish Shettar has urged state revenue minister Krishna Byre Gowda to immediately address widespreaddisruptions in property transactions triggered by recent changes in the e-Khata and Kaveri 2 systems, warning of serious economic and administrative fallout.In a detailed representation, Shettar highlighted that the real estate and construction sector—one of the largest contributors to employment and govt revenue through GST, stamp duty, registration fees and labour cess—has been severely affected. He estimated that the ongoing issues have led to a revenue loss of nearly Rs 5,000 crore during the 2025–26 financial year.A key concern relates to properties held under perpetual lease in prominent localities like Tilakwadi, Nehrunagar, Mujawar Galli,Fort Road, Station Road and Patil Galli. These properties, leased 70 to 100 years ago, still carry the names of original owners in CTS records, while actual possession lies with leaseholders.

Earlier, transactions involving such properties were routinely registered, with banks also extending loans.However, under the integrated e-Aasthi and Kaveri 2 system, original lessors are now recorded as 'owners' and current occupants as mere 'tax payers', making the physical presence and consent of original owners' mandatory for registration. With many such owners deceased or untraceable, property transactions have nearly come to a halt.

The situation has also led to legal ambiguities, instances of fraudulent claims by impostors, denial of bank finance due to record discrepancies, and mounting financial stress among developers.Further complications have arisen in the case of properties owned by partnership firms, LLPs and private limited companies. The system now mandates listing all partners or directors in e-Aasthi and requires their physical presence during registration.

This has proved impractical as stakeholders are often based in different cities or even abroad, thereby delaying transactions and rendering existing authorisation mechanisms ineffective.Additionally, a govt order dated Feb 2, 2026, has made life certificates with a validity of just seven days and OTP verification compulsory for General Power of Attorney (GPA)-based transactions. This requirement has added to procedural bottlenecks, particularly affecting senior citizen and non-resident stakeholders, while further prolonging transaction timelines.Shettar noted that these changes have created widespread concern among citizens, developers and financial institutions, with property registrations witnessing a sharp decline in recent months. He stressed the need for immediate corrective measures, including interim guidelines for perpetual lease properties, legal recognition for historical records, provision for authorised representatives in company transactions, simplification of GPA norms, and user-friendly reforms in the Kaveri 2 system.Citing growing public grievances from his Lok Sabha constituency, the MP called for urgent govt intervention to restore normalcy in property transactions and prevent further revenue loss.