Procedure For Converting Agricultural Land To Non-agricultural Land

Last Updated at: Nov 23, 2020
In May 2020, the Karnataka Government announced an important reform to improve the land market and help farmers in the state. The cabinet has decided to open the land market by allowing non-agriculturists to purchase agricultural land, remove income restrictions imposed on the buyers’ non-agricultural income and increase the maximum permissible size of holdings by an individual or family. The government plans to amend the Karnataka Land Reform Act, 1961, in the next legislative session to reflect these changes. 


What is meant by Agricultural land?

Agricultural land is generally defined as the portion of the land area that is under permanent pastures, crops or arable, etc. Agricultural land is explained under different state statutes.

According to the collection of development indicators by the World Bank agricultural land in India is reported to be 60.41% in 2014.

Converting Agricultural land to Non-Agricultural land

Law doesn’t permit to build houses, factories, industries, etc. on the agricultural land regardless of the ownership of the property. Any construction should take place only after converting the agricultural land into non-agricultural land.

It is essential to be extra cautious before purchasing a property for construction/residential purposes. You must always make sure that the land on which the construction is taking place is non-agricultural land. In case it was initially allocated as agricultural land, it should be converted to non-agricultural land.

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Procedure to convert Agricultural land to Non-Agricultural land

  1. An obligatory consent is necessary from the local authorities to get a ‘change of land use.’ An application form has to be sent to the Commissioner of the Land Revenue Department clarifying the reason behind conversion.

2. Following documents should be attached with the application letter:

  • Original Sale Deed (or gift/partition deed)
  • Mutation Letter
  • Certified survey map
  • Latest tax paid receipt
  • ID Proof

3. Fee Payment: When agricultural land is converted to non-agricultural land an obligatory fee is essential to be paid depending on the kind of the property and its locality.

4. Details such as the extent of land, mortgages, kind of crops and soil, names of the previous and present owners, etc. need to be mentioned.

5. Certified copies of the documents as mentioned earlier can be acquired from the Tahasildar or Revenue Office. All the unpaid dues should be paid, and copies of payment proof need to be added.

6. Now it is the duty of the Deputy Commissioner, or Collector authorized to permit the conversion of agricultural land to non-agricultural land. Deputy Commissioner or Collector will permit conversion only if they’re convinced that necessary conditions have been met and there are no pending dues or litigation on the land.

7. The conversion ought to be permissible under the master plan of the land. A conversion order permitting the change in land from agricultural to non-agricultural will then be issued.

8. Once a Conversion Certificate is obtained the farmland is officially converted to non-agricultural land.

According to law, if any violation is found in the procedures, there will be severe penalties.