Mysuru has seen property transactions worth Rs 10 billion (bn) stall after faults in the municipal e-Khata digital record system disrupted the issuance of essential ownership documents. The disruption affected conveyance and transfer processes, leaving buyers and sellers unable to complete scheduled registrations. Real estate agents reported that pending clearances and electronic certificates could not be generated, causing uncertainty for those engaged in ongoing deals. The stalled activity has also delayed the formal update of municipal records.

The inability to obtain e-Khata certification has created practical hurdles for mortgage approvals and legal conveyancing, as lenders and registration offices require validated ownership documentation before disbursing funds or accepting sale deeds. Conveyancers and property consultants advised clients to withhold settlement until the registry issues can be confirmed, while developers have put planned handovers on hold in several cases. The paralysis in routine transactions has affected market confidence and introduced friction into an otherwise steady local property market.

Municipal officials have acknowledged technical difficulties with the e-Khata platform and are collaborating with information technology providers to restore full functionality, prioritising limited corrective measures to clear backlogs. Legal practitioners recommended that stakeholders retain all analogue proofs and transaction receipts to establish continuity of title once systems return online. Observers noted that such interruptions expose reliance on single digital gateways for critical civic services and underscored the need for robust contingency protocols.

The cumulative value of affected deals underscores the economic significance of the disruption and may prompt calls for accelerated digital resilience in municipal systems. Until services are fully restored, some buyers are likely to defer acquisitions and lenders may adopt a cautious approach to new approvals, prolonging the slowdown. The situation emphasises the importance of clear communication from civic authorities and prompt technical remediation to limit further disruption to property markets in Mysuru.