Converting Agricultural Land in India: A Complex Process
Navigating the conversion of agricultural land for residential, commercial, or industrial use in India presents a complex legal landscape. Despite owning agricultural land, constructing homes or businesses without proper conversion is deemed illegal. This necessitates adhering to a specific procedure involving obtaining permission from relevant authorities for a "land use" change.
State-Specific Regulations and Authorities
Land laws in India vary significantly across states, creating a complex web of regulations. The process involves contacting either the revenue department or the urban planning authority, depending on the state.
In several states, including Maharashtra, Karnataka, Rajasthan, and Uttar Pradesh, landowners must seek permission from their respective town's revenue department. For instance, Rajasthan allows the tehsildar to approve conversions for plots up to 2,500 square meters. Larger housing projects on agricultural land require approval from either the state government (if the total area exceeds the ceiling limit) or the sub-divisional officer (for areas under it). Similarly, commercial projects necessitate state government, collector, and sub-divisional officer permissions.
As Prabhanshu Mishra, a Lucknow-based attorney, explains, "Section 143 of the UP Zamindari Abolition and Land Reforms Act empowers the Sub-Divisional Magistrate (SDM) to convert agricultural land for residential use."
Most states restrict conversions of fertile land for residential purposes, permitting only conversions of dry or unused land. The previous requirement of being a farmer to purchase agricultural land has been lifted in several states, including Uttar Pradesh (since 2014).
In states with less specific designations, landowners can submit written land-use change requests to the commission, district magistrate, or collector for a change in using the land. Through amendments to the Zamindari Abolition and Land Reforms Act, the Uttar Pradesh government enabled real estate developers to utilize productive agricultural land for residential purposes. Odisha demonstrates similar flexibility, with landowners able to change fertile land use after obtaining permission from the tehsildar or sub-collector, as per the Odisha Land Reforms Act of 1960. Karnataka grants the commissioner of the land revenue department the authority to approve land conversions. Meanwhile, Andhra Pradesh allows tehsildars and tax division officers to grant consent, offering online application submissions in both cases. In Bihar, the conversion order comes from the sub-divisional officer.
Required Documentation
Applicants seeking land conversion must submit comprehensive documentation including details concerning the land parcel, the intended purpose for the change, and supporting evidence. Necessary documents include proof of identity, the sale deed, Records of Tenancies and Crops (RTC), partition deed (if applicable), mutation records, a study map, and land revenue payment receipts. Missing documents can often be retrieved from the city's revenue department. All outstanding bills and taxes must be cleared before application submission, and the property should be free of legal encumbrances.
Timelines and Associated Costs
Land conversion involves a one-time fee, fluctuating across states, districts, and localities. Andhra Pradesh charges 3% of the land's value. For public land converted to residential use in Haryana, there is a fee of Rs 210 per square meter. Delhi's conversion fees are Rs 14,328 to Rs 24,777 per square meter for residential permits, with additional Floor Area Ratios (FAR) ranging from Rs 3,039 to Rs 7,597 per square meter in various industrial areas. Rajasthan's conversion costs span from Rs 60 to Rs 200 per square yard for residential and Rs 400 to Rs 800 per square yard for commercial conversions. Bihar mandates a 10% conversion fee of the property's value. It's crucial to retain the payment receipt as proof of application.
Obtaining the certificate may take time. For instance, Maharashtra's Land Revenue Code, 1966 stipulates a 90-day period for issuing the conversion order. Afterwards, the tehsildar and the revenue department attests to the conversion certificate.