Banks and financial institutes refuse to process home loan for borrowers without Khata certificate. The government has stopped issuing new khatas. Even changing the khata from seller to buyer is not being done, citing administrative issues.
After a long impasse over registration of properties, which has now been solved, the vexed khata issue is hindering the home loan process and has left property buyers in the lurch. To facilitate sale of properties in former urban local bodies around the city, the government on August 14 suggested alternative documents for registration — copies of khata and assessment extracts issued by CMCs, TMC or village panchayats under whose jurisdiction the buildings/land belonged.
According to the inspector general of registration and commissioner of stamps, K R Niranjan, the government communication has been sent to all sub-registrars but not the banks.