Conversion of land from agricultural to Non-Agricultural is not as simple as it may sound. Online land conversion of agricultural land to residential land is a quite time-consuming and intimidating process in India.
Agriculture is one of the most significant commercial activities in India. 60% of our population are dependent on this primary sector directly and indirectly too, and this has been the case throughout history. To protect the fertile lands of India that are capable of producing crops and giving farmers a livelihood, laws have been formulated. This is why, in India, even individuals who own such agricultural property are not permitted to utilize it for any other purpose, be it residential, commercial, or industrial. Suppose the owner wishes to use his farm property for an activity that does not fit within the category of agricultural activity. In that case, a proper legal process must be followed in order to convert the land for that specific use. This is also the case for those who buy it from farmers and use it for other purposes. Formally, this process is known asland-use conversion.
Until one has acquired authorization to utilize his agricultural property as residential land, doing so is unlawful and punished under state law. For instance, under the Delhi Land Reforms Act of 1954, using agricultural land for non-agricultural purposes without authorization in Delhi can result in up to three years in prison, a fine of up to INR 10 lakhs, or both. According to a legislative change, properties utilized for non-agricultural uses without a license may be auctioned off by an official with jurisdiction over the region.
How to Convert Farmland to Non-Agricultural Land
The district revenue department has the power to authorize agricultural land conversion. However, because the land is a state issue in India, rules controlling land-use change are created by the state and implemented in letter and spirit throughout the state. If large areas of agricultural property must be transformed for uses other than farming, the owner may need to contact a higher authority than the tax department or the planning board.
Some states and their rules are as follows: –
The town planning agency in Punjab and Haryana is in charge of providing clearance for land-use modification. Owners must apply to the collector for authorization to transfer the use of agricultural landto non-agricultural purposes under the Maharashtra Land Revenue Code Regulations. The Delhi Development Authority (DDA) permits land conversion throughout the city.
The revenue department in Uttar Pradesh has the power to authorize the agricultural land conversion to residential use.
The ability to authorize land-use change is vested in the area’s sub-divisional magistrate (SDM) in Jharkhand and Bihar.
In Odisha, the authority responsible for authorizing land-use conversion is the tehsildar/sub-collector.
In Karnataka, the land revenue department commissioner has the power to provide land conversion permissions, but in Andhra Pradesh, tehsildars and revenue divisional officials have the ability to grant clearance for land-use change.
In Rajasthan, if the acreage of the agricultural property does not exceed 2,000 square meters, the owner must contact the tehsildar to have it changed for residential use. The owner will have to go to the sub-divisional officer if the land is not more than 4,000 sqm. For areas more than 4,000 sqm, the owner should approach the district collector.
Documents needed for land-use conversion
An application is the first step towards getting approval for turningagricultural landinto residential properties. Apart from that, there are many documents that are required to be presented before the authority concerned. Those are as follows: –
- Identity proof of the owner
- Nil-encumbrance certificate
- A survey map
- The land utilization plan of the land concerned
- A copy of the sale deed
- Records of rights, tenancy, and crops, also called RTC
- In case the land has been inherited amongst brothers or other family members, a copy of the partition deed is needed
- Mutation documents are needed
- 7/12 extract (if applicable)
- Water portability certificate from a recognized water-testing laboratory in case of a farmhouse
- If it is a housing project, project reports are required.
- NOC or the No Objection certificate from the municipal council or gram panchayat.
- Payment recipe of land revenue, etc.
In the event that any land-related documents are not already available to them, owners can obtain them from the revenue department, which keeps a record of such documents.
What is 7/12 extract?
Ordinarily, individuals are familiar with the rules that govern the purchase of a flat or an apartment. But what if you wish to purchase a property in Maharashtra? In such circumstances, the ‘7/12’ or ‘Satbara Utara’ extract is critical. The Maharashtra government is now making 7/12 papers available online via the Maha Bhulekh site. This is the state’s one-stop portal for finding, downloading, and extracting land records. It is a Maharashtra state land record website that offers 8A extract and 7/12 extract online to residents. It is also known as Maharashtra Bhumi Abhilekh. The digitally signed 7/12 and 8A extracts and property cards are available online for download by property owners who might also be utilized for legal verification.
In Maharashtra, each district maintains a land registry that provides information on the lands in that district. The 7/12 is an excerpt from one of these registers, which contains all of the information on a certain plot. The revenue department issues a 7/12 extract through the tahsildar, which contains information such as plot ownership, occupation, obligations on the plot, survey number data, and date of proprietorship, etc.
The village form number is shown in the 7/12 extract. The number 7 denotes Form VII, which contains information on the owners and their rights, while the number 12 denotes Form XII, which provides information about the land’s agricultural characteristics.
The 7/12 extract is just a record to determine revenue liability, not a definitive document to show ownership.
What is a Nil-encumbrance certificate?
A nil encumbrance certificate is given in Form No.16 if no deeds of the transaction are registered in relation to a property. If a certificate is granted in this format, it implies that there are no unregistered transactions or obligations on the property for a certain period of time.
What are the costs associated with land-use conversion?
The land-use change conversion cost is set throughout Indian states and is determined by the land area and collector rate — the greater the land area, the higher the conversion price. To allow the conversion of agricultural property to residential, a percentage of the collector rate is levied.
To convert your farmland to residential use in Haryana, you must pay ₹10 per sqm.
Conversion prices in Delhi range from ₹14,328 to ₹24,777 per sqm, while additional floor area ratio (FAR) charges in various industrial zones range from ₹3,039 to ₹7,597 per square meter.
In Bihar, a conversion fee of 10% of the property value is required, whereas in Maharashtra, a conversion fee of 50% of the entire cost of land, as calculated by ready reckoner (RR) prices, is required.
If the land is situated in a village with a population of fewer than 5,000 people, a charge of ₹1 per sqm for an area up to 2,000 sqm must be paid. If the land is located in a hamlet with a population of more than 5,000 people, however, a charge of ₹2 per sqm for an area not exceeding 2,000 sq meters must be paid. If the area exceeds 2,000 sqm in the same village, a fee of ₹4 per sqm must be paid.
Is it possible to apply for a land-use change online?
As our world is progressing towards the digital era, both because of evolution and technology and the global pandemic, everything, from entertainment to government official work, needs to be put up online for convenience and accessibility.
Several Indian states now enable land-use change over the internet. The owner can apply online and submit copies of the papers using the official websites in these states – Karnataka, Andhra Pradesh, Punjab, Rajasthan, Haryana, West Bengal, and others.
When converting agricultural land to non-agricultural land, how long does the process take?
When the authority receives an application for converting an agricultural property to residential use, they first check to see if all of the necessary paperwork has been done. The second stage is to double-check each document’s authenticity. Because the agricultural property is frequently owned jointly by multiple persons, every effort is made to verify that the application gets the agreement of the other parties.
A conversion certificate may take three to six months to be obtained, depending on the state where you apply for land conversion. Because a variety of papers must be checked and validated, the approval process may take longer than anticipated. The process may take less time in jurisdictions where an online conversion option is offered.
Some necessary points to keep in mind during this entire process
- If the land in question is held by many people, each owner will be required to present evidence of identification and proof of ownership of the land.
- If there are any encumbrances on the property, your application to convert it from agricultural to non-agricultural (NA) land will be refused right away. To be eligible for conversion, all dues and mortgages on the land must be paid.
- The land conversion certificate cannot be issued to the applicant within a defined timeframe. Keep in touch with the relevant authority to receive updates.
- Even though NRIs are not permitted to acquireagricultural land in India, they will be able to do so if the land has been converted to residential use in accordance with the law.
- The conversion must be made within a certain amount of time. If the owner fails to meet that deadline, he will lose his right to change the land’s use.
- The fee payment receipt must be kept carefully since it also serves as proof of conversion. While this receipt must be kept secure until the land has received a conversion certificate, it should also be kept safe for future reference.
- Developers, unlike private owners, must submit an even bigger number of documents when asking for a land-use change in order to build major housing complexes.
- If the land is used for some other purpose than the one specified in the conversion application, the owner faces penalties. If the owner is found guilty of abusing the land in Bihar, a penalty of 50% of the conversion cost must be paid. In other places, the penalties would include not just monetary sanctions but also judicial action.
Although agricultural lands are best suited for only crop production, there are several reasons why people would want to convert it to some other form of land and use it.
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Frequently Asked Questions (FAQs)
Who has the authority to enable an agricultural property to be converted to residential use?
To change your agricultural land to residential use, you must contact either your city’s tax department or its planning authority.
Is it possible for non-resident Indians to purchase agricultural land in India?
NRIs are prohibited by law from purchasing agricultural land in India.
Are the number of documents submitted by developers the same as the individuals?
As opposed to private owners, developers are needed to provide an even greater amount of documents when asking for a land-use change to build major housing complexes.
How long does it take to get a conversion certificate issued?
Usually, it takes about three to six months to get a conversion certificate issued, which is a crucial part of this entire process.
In India, who may acquire agricultural land?
In certain states, such as Telangana, anybody, whether or not they are farmers, can purchase agricultural land. In certain areas, such as Karnataka, however, only registered farmers or members of farming families are allowed to purchase an agricultural property.
