AUDA Freezes Agricultural Land Conversion, Impacting Realty Investors
The Ahmedabad Urban Development Authority (AUDA) has implemented a freeze on the conversion of agricultural land. This action by AUDA stands to significantly impact thousands of property investors who have allocated funds to land within the authority's jurisdiction. A substantial number of these investors had specifically targeted land acquisitions for the purpose of constructing farmhouses.
Ahmedabad Authority bans conversion of agricultural land for construction purposes.
Thousands of real estate investors have invested within the 68 villages that fall under the jurisdiction limits of Ahmedabad Urban Development Authority. They are now facing a predicament, as AUDA has put a stop to the conversion of agricultural land for alternative uses. It appears that non-agricultural conversions will now only be considered under exceptional circumstances.
Individuals who have invested in agricultural plots with the intention of converting them later, but have not yet secured the necessary Non-Agricultural (NA) approvals, will be directly affected by the Ahmedabad Authority’s revised plan. This new plan imposes a widespread prohibition on the conversion of agricultural land for any other purpose.
Under the new regulations, only 5% of the total agricultural land area will be eligible for construction activities. This restriction is anticipated to have a substantial impact on farm house developments. Given the constraints on plot sizes, constructing farmhouses will become exceedingly difficult. Investors who have purchased land along the SP Ring road corridors but have not obtained NA permits may need to explore alternative options.
Ahmedabad Authority bans the conversion of agricultural land, farm house- construction affected.
While some concessions on construction may extend to a 200-meter radius from the existing village boundaries, any construction within this zone will require explicit approval from AUDA. However, exceptions to this rule are made for large residential township projects or major institutions that are specified under the existing General Development Control Regulations, allowing such entities to proceed with agricultural land conversion.
The new development plan is slated to take effect by the conclusion of the year. However, AUDA has already directed officials to halt all pending applications for NA permissions. Furthermore, the Ahmedabad Authority has instructed its personnel to cease accepting any new applications for NA permits as well.
This new development plan from the Ahmedabad Authority will significantly impact land sharks. These entities have amassed substantial land banks in anticipation of profiting from converting agricultural lands into residential plots. Many realty investors acquired land banks within the AUDA limits, anticipating future reclassification into residential zones. Consequently, the new development plan looms as a substantial concern for them.