Revenue Sites in Karnataka: Risks, Verification and What Buyers Must Know

Published: 4 September 2026 | Updated on: 4 September 2026 | By L K Monu Borkala, CEO & Founder, OneCity Property — 15 years of property consultancy experience and over 20 years in marketing and management at OneCity Technologies Pvt. Ltd.

What is a revenue site in Karnataka?

A revenue site — also called a revenue plot or panchayat site — is a piece of agricultural land that someone has subdivided into smaller plots and sells as "residential sites" without completing the legal steps required to make them buildable. In government records, the land still shows as agricultural. The word "revenue" refers to the Revenue Department's classification, not any endorsement that the land is safe to buy.

The legal steps a genuine residential plot goes through — DC conversion under Section 95 of the Karnataka Land Revenue Act, layout approval from BDA/BMRDA/DTCP, khata transfer — are precisely the steps a revenue site skips. That is why revenue sites are cheaper. The discount is the cost of the problems being transferred to the buyer.

Why are revenue sites risky?

Every downstream process in Karnataka property development depends on the land's classified use. Without conversion:

• Construction is illegal — no planning authority will sanction a building plan on land classified agricultural.
• Bank finance is unavailable — lenders require DC conversion, layout approval and A-Khata standing before sanctioning a plot loan.
• Utility connections are blocked or informal — BWSSB water, BESCOM electricity and sewage connections require approved plans.
• Government acquisition risk — the land can be acquired for public projects at compensation based on agricultural land rates, not the residential price you paid.
• Resale is impaired — an informed buyer will not pay residential rates for unconverted land, locking you into a discount.
• Demolition risk — Karnataka has demolished structures on unauthorised layouts before. This is not theoretical.

The only path to resolving a revenue site's status is obtaining DC conversion after purchase, which depends on the land meeting eligibility criteria and the government accepting the application — a process the buyer pays for and bears the risk of.

What is the 2026 "5 guntas rule" and how does it affect revenue sites?

In February 2026, Karnataka's land survey department issued a circular directing Deputy Commissioners statewide to reject any DC conversion application for agricultural plots measuring 5 guntas (approximately 5,445 sq ft) or less. This is the size most revenue sites are carved into — typically 30x40, 30x50 or 40x60 feet plots that fall well under the 5-gunta threshold.

The practical effect: if you buy a sub-5-gunta revenue site today, you cannot file a DC conversion application to regularise it. The plot stays agricultural in perpetuity unless the rule is revised. For plots you already own, the rule applies prospectively — your existing title and registration remain valid, but the conversion pathway is closed.

The rule does not affect properties within the Greater Bengaluru Authority (GBA) master plan area, which benefit from a separate auto-conversion reform launched in February 2026 where land conversion happens automatically during the building-plan-approval process. The vulnerability falls squarely on plots in peripheral zones outside the GBA — Devanahalli outskirts, Anekal fringes, Kanakapura belt, Doddaballapur surrounds — which is exactly where most revenue sites are sold.

How do I verify whether a site is a revenue site or a legally approved plot?

Before paying any advance, run these checks in order:

1. Pull the RTC on Bhoomi — go to landrecords.karnataka.gov.in, enter the survey number, and check the land classification column. If it reads dry (khushki), wet (tari) or garden (bagayat), the land is still agricultural — regardless of what the seller's brochure says. Full steps in our Bhoomi RTC download guide.
2. Ask for the DC conversion order — a genuine order names the specific survey number, extent, and the non-agricultural purpose it was converted for. Verify the order number with the DC office. An "application number" or "acknowledgement" is not a conversion — it means the application was filed, not approved.
3. Check layout approval — conversion alone does not permit subdivision into plots. A separate layout sanction from BDA, BMRDA, DTCP or the jurisdictional planning authority is required. Ask for the sanctioned layout plan and locate your specific plot number on the drawing.
4. Pull the Encumbrance Certificate — check 30 years of transaction history on the EC through the Sub-Registrar for mortgages, litigation or multiple sales of the same parcel.
5. Verify khata status — A-Khata means the plot is in the regular municipal register and supports building plans, loans and clean resale. B-Khata or panchayat-register status means impaired classification that most banks will not finance. See our khata certificate vs extract guide for the distinction.

A seller who cannot produce the DC conversion order, layout plan and A-Khata certificate is selling you a revenue site, however the marketing materials describe it.

Revenue site vs BDA site vs BMRDA site: what is the difference?

The price difference is the reason revenue sites sell. But that discount is a precise reflection of the legal deficiencies — it is the market pricing in the risk that the buyer is taking on. For BDA-specific verification, see our BDA sites investment guide and the BMRDA approved sites verification guide.

Can a revenue site be converted after purchase?

In theory, yes — the buyer can apply for DC conversion under Section 95 after registering the sale deed. In practice, three hurdles block most attempts:

• The 5 guntas rule — plots under 5 guntas (the majority of revenue sites) are now barred from conversion applications statewide.
• Section 79A eligibility — the buyer must qualify to hold agricultural land under the Karnataka Land Reforms Act before applying for conversion. Non-agriculturists face restrictions. See our Section 79A/79B agricultural land transfer guide for the eligibility conditions.
• Conversion fee and timeline — even eligible applications take 30 to 90 days, with fees based on guidance value of the land. Details in the land use conversion guide.

The September 2025 Karnataka Land Revenue Rules amendment introduced auto-conversion for land within an approved master plan area — conversion happens automatically during the building-plan-approval process. But this applies only to plots that already conform to the published plan, not to arbitrarily subdivided agricultural parcels with no layout approval.

What about the 2026 B-Khata to A-Khata conversion window?

Karnataka has periodically announced discounted-fee windows for eligible B-Khata properties to convert to A-Khata status. These windows help existing owners whose properties meet the technical requirements but do not retroactively fix the underlying problem of a revenue site: if the land was never DC-converted and never had layout approval, a khata conversion scheme cannot create approvals that were never granted. Buy A-Khata, or price the alternative as the impaired asset it currently is.

What should NRI and out-of-state buyers know about revenue sites?

Revenue sites are disproportionately marketed to NRIs and out-of-state buyers — lower prices, attractive brochure renders, and the promise of "conversion in progress." The distance makes due diligence harder and follow-up slower. Before any payment: verify the RTC classification yourself on the Bhoomi portal, insist on seeing the original DC conversion order (not a photocopy), and have a local lawyer physically verify the layout approval with the planning authority. Our Karnataka land measurement and law guide covers the units and framework you need to read any Karnataka property document confidently.

Frequently Asked Questions

Is it safe to buy a revenue site in Karnataka?
A revenue site carries significant legal and financial risk: no building plan approval, no bank loans, and potential demolition of unauthorised construction. It is not safe without DC conversion and layout approval in hand before purchase.

Can I get a home loan on a revenue site?
No. Banks and housing finance companies require DC conversion, layout approval from a statutory planning authority, and A-Khata standing before sanctioning plot loans. B-Khata and panchayat-register plots are typically rejected.

What is the difference between a revenue site and a gramathana site?
A gramathana site is within a village settlement area recorded in the village map. It may have panchayat recognition but still lacks statutory layout approval. Both carry similar risks for construction and bank finance compared to BDA/BMRDA approved plots.

Can I register a revenue site?
Yes — registration of the sale deed at the Sub-Registrar office is a separate process from land-use approval. You can register the transaction and pay stamp duty, but registration does not convert the land use or grant building permission. A registered revenue site is still agricultural in classification.

What is the 5 guntas rule?
A February 2026 circular directing Deputy Commissioners across Karnataka to reject DC conversion applications for agricultural plots of 5 guntas (approximately 5,445 sq ft) or less — the typical size of revenue site plots.

When will revenue site registration start again?
Revenue site sale deeds can still be registered — the Sub-Registrar does not block registration based on land classification. What is blocked is DC conversion for sub-5-gunta plots. There is no announced date for lifting this restriction.

The bottom line

A revenue site is agricultural land dressed up as a residential plot. The price is lower because the legal status is lower — no conversion, no layout approval, no bank finance, no guaranteed utilities. The 2026 five-guntas rule closed the conversion door for most of these plots. Before paying any advance on any site outside an approved layout in Karnataka, pull the RTC, demand the DC conversion order by number, verify the layout plan with the planning authority, and check the khata classification. If any one of those is missing, you are buying agricultural land at a premium to agricultural prices. For help verifying a specific plot anywhere in Karnataka, talk to our advisory team.