Karnataka high court rules property buyer entitled to khata transfer

Bengaluru: A person who purchased a property under the asset reconstruction law is entitled to seek transfer of its khata in his favour, the high court has ruled.The sale under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act and issuance of a certificate to this effect carry a presumption of regularity, Justice Suraj Govindaraj noted in his recent order while allowing the petition filed by Hassan resident Nagabhushana.
Nagabhushana purchased a flat situated at P&T Colony, Sanjaynagar, Bengaluru, from SV Naresh, the successful bidder in an auction conducted by SBI. The flat's previous owner, Revathi, had pledged the property with the bank, and as she had failed to repay the loan, it had been auctioned under SARFAESI proceedings.In the meantime, BBMP (now Greater Bengaluru Authority) cancelled its khata and rejected the khata transfer application submitted by Nagabhushana, saying the building was an unauthorised construction.Bescom authorities also disconnected power supply to the flat in 2024. Nagabhushana challenged both actions.Rameshchandra, counsel for the petitioner, submitted that the khata in question was transferred to Revathi in 2003 and objections to the same were submitted only in 2011 and, ultimately, in 2023. The khata was cancelled in 2023, all barred by limitation, as BBMP laws stipulated that no review could be entertained after three years.He added there was no allegation of fraud or suppression of facts against the previous owner. He claimed there was no justification for Bescom to cut off power supply following cancellation of khata.Justice Suraj Govindaraj noted that the alleged illegality or unauthorised nature of the construction could not justify the cancellation of khata independent of, or beyond, the statutory limitation prescribed under the municipal laws.The judge added the consequential disconnection of power supply was not sustainable in law. He directed immediate restoration of power supply, apart from considering the application for transfer of khata in Nagabhushana's name.