Despite transparency measures, hundreds duped in e-khata scam

Bengaluru: Even as the mandatory implementation of the e-Khata system was aimed at improving transparency in property transactions, it has been misused by fraudsters in Bengaluru, resulting in large-scale cheating of both the government and the public.

Taking advantage of the digital system, offenders allegedly created forged documents and illegally registered properties in the names of preferred individuals before selling them for huge sums, running into lakhs and even crores of rupees.

Authorities have uncovered illegal registrations involving around 1,400 properties in Bengaluru over the past year, exposing what is now being described as a major e-Khata scam. Following the revelations, five officials — including sub-registrars and a first-division assistant — have been suspended. According to officials, the accused misused the ‘Kaveri 2.0’ online registration portal by bypassing mandatory checks. The staff allegedly failed to upload e-Khata details that were required to be verified through the ‘E-Swathu’ system before property registration. Since 2024, property registrations without valid e-Khata certificates were meant to be blocked through the Kaveri-2 portal. Investigators suspect that fraudsters may have sourced data from the Unified Land Management System (ULMS). They allegedly downloaded valid e-Khata certificates issued by the Rural Development and Panchayat Raj (RDPR) Department for certain properties, digitally altered them and used the forged documents to carry out illegal registrations. Officials said loopholes in registration software at offices such as Banaswadi, Ulsoor and Varthur were exploited to facilitate these fraudulent transactions.

The Bruhat Bengaluru Mahanagara Palike (BBMP) had introduced the e-Khata system as a major digital reform to simplify property record management. The online platform was designed to eliminate the need for citizens to visit offices repeatedly, while enabling transparent application submission, tax payment and document verification.

Urban local bodies have been instructed to dispose of e-Khata applications within a mandatory timeframe of 7 to 60 days. To curb corruption and reduce direct interaction between officials and applicants, a ‘faceless’ online system has also been implemented. Under this system, applications that reach the final stage are expected to be cleared within two to three days, ensuring faster and more transparent service delivery.

Meanwhile, under the state government’s ‘E-Swathu’ scheme, around 6.5 lakh unauthorised properties in three districts surrounding Bengaluru are set to receive e-Khata certificates. The Rural Development Department has set a target of issuing e-Khatas within 15 days. The initiative is expected to benefit property owners while also boosting revenue for gram panchayats.

After the relative success of the e-Khata drive in Bengaluru, the state government has now moved to extend the digital property documentation initiative to rural areas across Karnataka.