Affidavit Based Land Conversion

In a move that will immediately impact land transactions, Bengaluru-based Revenue Minister R. Ashoka announced yesterday that the state government will amend the current legislation to permit the conversion of agricultural plots for non-agricultural use within a week. 

Ashoka stated that the new program aims to stop corrupt practices by government officers at different levels and to avoid requiring landowners to endure needless hassles. According to him, it currently takes six to eight months for people who bought land to convert. 

The Minister stated that although the conversion fee in rural areas will remain unchanged, residents in cities and semi-urban areas will be required to pay two or three times as much. The Deputy Commissioners’ offices, which handle all types of land conversion to form layouts and industrial areas, will implement a single-window system. 

The Revenue Department now follows protocol when sending the DC’s land conversion application to the planning authority. The file then goes to the Tahsildar, the Revenue Inspector, the Village Accountant, and all land acquisition officers. 

By the time the land gets converted, it takes around six to eight months and needs multiple reports, Ashoka said. He said some constraints would apply to those seeking to convert the land. For instance, the land for which conversion is necessary should not be encroached on or reserved for the welfare of Scheduled Castes or Scheduled Tribes. 

The applicant must submit an affidavit and pay the required cost of converting the land. An agricultural landowner may use the affidavit-based conversion to convert their land to any non-agricultural use by submitting a self-declaration by the authorized master plan for that specific area. 

The conversion is impossible if a specific area exists in the master plan as a green zone. If the master plan has not yet been approved for the area, it will be based on self-declaration, given that the non-agricultural use has been approved by the relevant authorities by the Karnataka Town and Country Planning Act. According to Ashoka, the conversion will be canceled and the applicant will forfeit the application fee if false affidavits are submitted or if the affidavit has any gaps or ambiguities. 

Land Conversion from Agricultural Land to Residential Land

Even though you have full ownership of an area of agricultural land, you aren’t permitted to build homes there if the government allows you to. In India, fertile agricultural land could only be used for farming and nothing else, according to the law. The owner must request permission from the relevant authorities and change the “land use” to use it for something different, such as residential, commercial, or industrial use. If you built a home or operated a business on farmland in India, you would engage in illegal activity if this procedure was followed. If you developed a house or operated a business on farmland in India, you would be engaging in criminal activity unless this procedure was followed. 

Conversion of the agricultural property process

In India, laws governing land vary from state to state because it is a state subject. To convert your agricultural land to a residential area, you must contact either the revenue department or the planning authority in your city, depending on the state in which you currently reside. Landowners must go to the revenue departments of their towns for the conversion in states like Maharashtra, Karnataka, Rajasthan, and Uttar Pradesh.

For parcels up to 2,500 square meters, the tehsildar in Rajasthan, for instance, could approve the conversion of agricultural land to residential use. On the other hand, developers who want to construct housing projects on agricultural land must obtain permission from the state government (if the total exceeds ceiling areas) or the sub-divisional officer (where the entirety is under 10,000 sq m). In the same way, if the property is required for business purposes, permission from the state government, the collector, and the subdivisional officer must be obtained. 

According to Lucknow-based attorney Prabhanshu Mishra, Section 143 of the UP Zamindari Abolition and Land Reforms Act gives the Sub-Divisional Magistrate (SDM) of the area the power to convert agricultural land to residential use. 

Fertile land cannot be converted to be used for residential purposes under the laws that are in place in the majority of states. Only parcels of dry or unused land are eligible for conversion. Additionally, a requirement that has been eliminated in many states is that you must be a farmer to purchase agricultural land. In UP, for instance, this was changed in 2014. 

Landowners may submit a written request for a change in land use to the commission, the district magistrate, or the collector in states where no authority has given specific permission. The Uttar Pradesh government permitted real estate developers to use productive agricultural land for residential purposes through an amendment to the Zamindari Abolition and Land Reforms Act. 

This requirement is no longer necessary in Odisha as well. According to the Odisha Land Reforms Act of 1960, landowners may also change the use of fertile land with the tehsildar’s or sub-collector’s permission. 

The commissioner of the land revenue department has the power to approve land conversions in Karnataka. Tehsildars and tax division officers are permitted to consent for this reason in Andhra Pradesh. One may submit a land conversion application online in either of these states. 

In Bihar, the sub-divisional officer issues a conversion order. 

Landowners may submit a written request for a change of land use to the commission, the district magistrate, or the collector in states where no authority has been given specific permission. 

Documents required for the conversion of Agricultural land to residential land

In addition to providing all the information about the relevant land parcel, the applicant for the conversion must submit a lengthy list of supporting documents along with their application, in which they also state the purpose for which they are seeking the land-use change. 

The following types of paperwork must be submitted with the application by the applicant: 

  • Proof of identity 
  • Deed of sale
  • Records of Tenancies and Corps, or RTC
  • Deed of partition (if the land was inherited)
  • Mutation records
  • Study map 
  • Receipt of land revenue payments, etc. 

If any of this paperwork is gone, you can go to the revenue department of your city, which maintains all of these records. 

Please be aware that before you apply for the conversion, you must verify that all bills and taxes associated with the land have been paid. For authorization, the property must be free and clear of all legal encumbrances. 

How much time and money are involved?

There is a one-time mandatory fee to obtain a certificate of land conversion. This fee varies from state to state, district to district, and locality to locality. For instance, the conversion charge in Andhra Pradesh is three percent of the land value. In Haryana, there is a fee of Rs 210 per square meter to convert public land to residential use. 

In Delhi, conversion fees range from Rs 14,328 to Rs 24,777 per square meter for residential use permits, and additional floor area ratios (FAR) have been set at Rs 3,039 to Rs 7,597 per square meter in various industrial areas. 

In Rajasthan, the cost to convert an agricultural plot into a residential one ranges from Rs 60 to Rs 200 per square yard. The costs for converting land for commercial use range from Rs 400 to Rs 800 per square yard. 

10% of the property’s value must be paid as a conversion fee in Bihar. Note here that the receipt of the payment must be kept safe, as this paper acts as proof that your application has been submitted.

However, it might take a while before the applicant receives the certificate. For instance, Maharashtra’s Land Revenue Code, 1966, stipulates a 90-day window during which the order for conversion must be issued. 

The tehsildar must attest to the conversion certificate after the commissioner has issued it. 

Dharwad simplifies norms for land conversion

In a move that could have implications for the process of land acquisition for industry, the Dharwad district administration has introduced a system to prevent delay in processing applications linked to land conversion.
The Deputy Commissioner, Mr Darpan Jain said that though according to Section 95 of the Karnataka Land Revenue Act, 1964, permission for conversion of land use had to be granted within 45 days, the current method was causing unnecessary delay and there was no means for the applicant to know the status of his application.
Mr. jain further said, “We have decided to re-engineer the process of land use conversion so that the process is simple and on the spot”.
Under the new system, applications for land conversion from applicants in Hubli and Dharwad would be collected at a counter established on the premises of the Deputy Commissioner’s office. In the remaining three taluks of the district, applications would be accepted at the counters established in the offices of tahsildars, he added.
He said that a single counter for Hubli and Dharwad would save the time lost in forwarding applications from the tahsildar’s office to the Deputy Commissioner’s office.
Under the system, details of applications would be entered into a computer system and application would be verified taking into account the enclosed documents, the number of which had already been reduced.