SIR Areas: Govt Clarifies Khata & Property Tax Jurisdiction

The Karnataka Government has issued two important notifications concerning Special Investment Regions (SIRs) notified under the Karnataka Special Investment Region Act, 2022.

In a clarification issued on 26.05.2026, the Government stated that areas already falling within Municipal Corporations, Municipal Councils and other Urban Local Bodies will continue under the jurisdiction of the respective civic bodies for discharge of statutory functions, including property tax collection and municipal administration.

The clarification assumes significance as questions were raised regarding whether SIR notifications would automatically shift Khata, property tax and civic governance powers to KIADB or industrial township authorities.

The Government has now clarified that:

• property tax collection,

• civic administration,

• and municipal powers under existing municipal laws

shall continue with the concerned Urban Local Bodies.

Meanwhile, another notification dated 14.05.2026 amended the Karnataka Special Investment Region Rules, 2023, introducing provisions for electronic maintenance of property tax records and issuance of e-Khata/e-Swathu/e-Aasthi by the Regional Development Authority.

Together, the notifications indicate that while Urban Local Bodies presently continue civic governance in notified urban areas, the State is also creating a digital administrative framework for SIR regions.

Source: Karnataka Gazette Notifications dated 14.05.2026 and 26.05.2026.