BELAGAVI: Belagavi MP Jagadish Shettar has urged state revenue minister Krishna Byre Gowda to take immediate action on the severe disruptions in property transactions caused by recent updates to the e-Khata and Kaveri 2 systems, stressing the potential for significant economic and administrative consequences.
In his detailed appeal, Shettar pointed out how the real estate and construction sector—critical for employment and state revenue through various taxes—has suffered considerably, estimating a revenue loss of around Rs 5,000 crore for the 2025–26 fiscal year.
A significant issue revolves around properties under perpetual leases in key areas such as Tilakwadi, Nehrunagar, Mujawar Galli, Fort Road, Station Road, and Patil Galli. Many of these properties, leased 70 to 100 years ago, still reflect the original owners’ names in the CTS records, while the actual possession lies with current leaseholders. Previously, transactions involving these properties were routinely registered, and banks offered loans based on them.
However, the new integrated e-Aasthi and Kaveri 2 system now identifies original lessors as ‘owners’ and current leaseholders merely as ‘tax payers’. This shift necessitates the physical presence and consent of original owners for registration, complicating transactions as many original owners are deceased or untraceable. This has effectively stalled property transactions, led to legal uncertainties, and increased instances of fraudulent claims, while also hindering bank financing due to record discrepancies.
Moreover, properties owned by partnership firms, LLPs, and private limited companies face additional complications as the system now requires all partners or directors to be listed in e-Aasthi and to be present during registration. This requirement has proven impractical since many stakeholders reside in different cities or abroad, leading to transaction delays.
Additionally, a government order dated February 2, 2026, mandates life certificates with a validity of just seven days and OTP verification for transactions based on General Power of Attorney (GPA). This has introduced further procedural hurdles, particularly affecting senior citizens and non-resident stakeholders, and has prolonged transaction timelines.
Shettar emphasized that these changes have raised significant concern among citizens, developers, and financial institutions, resulting in a sharp decline in property registrations in recent months. He called for urgent corrective measures, including interim guidelines for perpetual lease properties, legal recognition of historical records, provisions for authorized representatives in company transactions, simplification of GPA requirements, and user-friendly reforms in the Kaveri 2 system.
Expressing the growing public grievances within his Lok Sabha constituency, the MP urged for immediate government intervention to restore normalcy in property transactions and mitigate further revenue losses.
