How to convert agricultural land into commercial

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How to convert agricultural land to commercial land? Here are a few basic steps that you need to follow for land conversion: File an application with the commissioner of the Land Revenue Department and add details of your land, and reason of the land conversion.

Full
Answer

Can agricultural land be converted to commercial or residential?

Generally changing agricultural land to commercial or residential use would be considered to be a radical change in character and identity. As to the increase in burden, that will be a question of fact.

What is the conversion rate of commercial land to industrial land?

From Commercial to Industrial will definitely not more than 15% of industrial market value. Don’t worry, the conversion rate is specified clearly in land act and transparent enough. All u need is to appoint a License Town Planner….

How to convert agricultural land into non-agriculture land?

Conversion of Agricultural land into the non-agriculture land is to be done by the permission from District Revenue Authorities. The tax you have to pay for this is known as NALA tax.

How to convert agricultural land for residential purposes in Uttar Pradesh?

In case vast tracts of agricultural land have to be converted for purposes other than farming, the owner may have to approach an authority higher than the revenue department or the planning body. In Uttar Pradesh, the authority to allow conversion of agricultural land for residential purposes is vested in the revenue department.

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Can agricultural land be converted to commercial in India?

Under the provisions of the law in India, fertile agricultural land could only be used for agricultural purposes and nothing else. To use it for a purpose other than that i.e. residential, commercial or industrial use, the owner has to seek an approval from the authorities concerned and change the “land use”.


How is agricultural land converted to commercial land in UP?

Documents required for the Conversion CertificateThe title deed of the concerned property.Mutation certificate.Original sale deed.No Objection Certificate (NOC) from the concerned authorities.A copy land map and land records.Registration certificate of the concerned property.A copy of the site and building plan.More items…


Can agricultural land be converted to residential in India?

Agricultural land cannot be used for residential purposes in India. In order to use the land for residential, commercial, or industrial use, the owner needs to seek an approval from the concerned authorities and change the land usage.


How do you change agricultural land to residential?

How to convert agricultural land to residential: Documents neededProof of identity of the owner.Copy of the sale deed.RTC (record of rights, tenancy and crops).Copy of partition deed (in case the land has been inherited).Mutation documents.Nil-encumbrance certificate.7/12 extract.More items…•


How do I get a conversion certificate?

Documents Required for Conversion CertificateMutation letter.Original sale deed.Title deed.No Objection Certificate (NOC) from the concerned authorities.Copies of land map.Copies of land records.Registration certificate and appointment letter of the architect.Copies of building plan and site plan.More items…


What is conversion of land to commercial?

Land Use Conversion is the act or process of changing the current physical use of a piece of agricultural land into some other use or for another agricultural use other than the cultivation of the soil, planting of crops, growing of trees, including harvesting of produce therefrom, as approved by DAR (DAR, 2002).


Why is it important to have the correct easements in place?

If landowners want to change the use of their property from agricultural to commercial or residential, then it is important to ensure that they have the correct easements in place to support that change of use.


Is changing agricultural land to commercial or residential use a radical change in character and identity?

Generally changing agricultura l land to commercial or residential use would be considered to be a radical change in character and identity. As to the increase in burden, that will be a question of fact.


Can an easement exceed the amount of land granted?

There is an established principle that an easement must not exceed that which was granted or acquired. The area of law is complicated, and there is some contradictory case law. In the leading case of [McAdams Homes v Robinson & Anor], the Court of Appeal issued some guidelines on the extent of which an applied easement can continue to be used if the use of [dominant land] has changed and/or additional buildings have been constructed. The two questions that the court focused on were:


Can you change agricultural land to residential land?

If the answer to both questions is ‘Yes’, then the landowner’s right to enjoy that easement will come to an end, or at least be suspended for so long as the change in character and a substantial increase in burden are maintained. Generally changing agricultural land to commercial or residential use would be considered to be a radical change in character and identity. As to the increase in burden, that will be a question of fact.


Can neighbours have agricultural land?

Particularly when considering changing the use of agricultural land, it is worth bearing in mind that neighbours may also have agricultural land, and this gives rise to specific additional considerations. If the drainage is through open ditches, then landowners downstream of the development may be concerned about the content of the water.


Does rain run off land?

Still, with commercial developments, where they are predominantly covered with hard surfacing, rainwater and particularly stormwater will likely run off the land more quickly into the drains and ditches. This will intensify the amount of water significantly that the drains need to carry.


How to convert agricultural land into non-agriculture land?

Conversion of Agricultural land into the non-agriculture land is to be done by the permission from District Revenue Authorities. The tax you have to pay for this is known as NALA tax. You have to submit an application form to RDO, in which you have to mention clearly the extent of land you are converting and the survey numbers of that land also should be clearly mentioned in your application. You have to attach a topo plan of that area marking in red, the places where you are constructing the buildings and other shops required. The fee to be paid will be informed by the RDO only. After receiving your application a survey team from their office will come to your place and conduct the survey as per the details you have given. They may ask you about pollution clearance and factory department clearance if you are going for manufacturing. It iis not mandatory but some officers may insist. You have to show or convince them by saying that you are in the process and as soon as you require you will submit a copy. Then they will submit their report to the RDO. RDO may forward it to the District Collector for clearance. Once the collector has given the clearance the RDO will inform you how much tax you have to pay for that land. This tax is not a one-time tax. You have to pay every year.


Is land conversion tax one time?

This tax is not a one-time tax. You have to pay every year. There is a standard procedure for conversion of land from agriculture to commercial or industrial use land. Though state to state there may be some small differences in the procedure but in general you have to approach the local land revenue office for this.


What is land conversion?

Land use conversion is defined as the act or method of modifying the current physical use of a parcel of agricultural land for either a non-agricultural purpose or the same agricultural use but other than soil cultivation as well as growing of crops and trees as approved by DAR. However, it is important to note that land use conversion is different …


When was the Comprehensive Rules on Land Use Conversion passed?

Your dream might only be a few documents away from becoming a reality given the recent amendments on the 2002 Comprehensive Rules on Land Use Conversion by the Department of Agrarian Reform (DAR).


What are the areas that are highly restrictive for conversion?

Lastly, areas highly restrictive for conversion include the following: irrigable lands with firm funding commitment, but are not covered by irrigation projects; agro-industrial croplands; highlands or areas with elevations of 500 meters and above exhibiting potential for growing high-value or semi-temperate crops; lands with notice of land valuation and acquisition, and; lands located within Environmentally Critical Areas (ECA) or involved with Environmentally Critical Projects (ECP).


Can a landowner apply for land conversion?

To start, only the landowner or his/her duly authorized representative can apply for land use conversion and submit all supporting documents. However, agricultural lands for conversion which were acquired under RA 6657 would only be allowed if the applicant is also the agrarian reform beneficiary. The beneficiary should likewise pay for the full price of the land.


Is the 2002 Comprehensive Rules on Land Use Conversion an executive method?

However, this isn’t merely for avoiding additional yet unnecessary fees in securing individual clearances. Instead, amendments of similar goals will allow the country to develop a comprehensive land policy framework that utilizes agricultural development towards sustainable economic growth.


Can you use the same land for different uses?

However, this doesn’t automatically allow a landowner to utilize the same agricultural land for different use. A converted land meanwhile gives the landowner an actual right to use a previously classified agricultural land into its converted, now intended use.


Is any agricultural land eligible for land use conversion?

The short answer is no. The long answer, however, is divided into three categories: convertible lands, non-negotiable areas for conversion and highly restricted areas for conversion.


What are the charges for land-use conversion?

The conversion charge for land-use change is fixed across Indian states, based on the land area and the collector rate – the larger the area, the higher the conversion fee. A certain percentage of the collector rate is charged, to allow the conversion of agricultural land into residential.


Which department is responsible for land conversion in Uttar Pradesh?

In Uttar Pradesh, the authority to allow conversion of agricultural land for residential purposes is vested in the revenue department. In Jharkhand and Bihar, the power to allow land-use change is vested in the sub-divisional magistrate (SDM) of the area.


How long does it take to get a land conversion certificate?

Depending on the state where you are applying for land conversion, it may take between three and six months, to get a conversion certificate issued. Considering that a host of documents have to be verified and authenticated, the approval might sometimes take longer than expected.


What happens if you breach the timeline for a land conversion?

There is a time limit within which the conversion has to take place. If that timeline is breached, the owner will lose his right to change the land use. Penalties are imposed on the owner, in case he uses the land for a purpose other than the one mentioned in his conversion application.


Why is agriculture important in India?

As agriculture is one of the biggest economic activities in India, laws have been formulated to protect the country’s fertile lands. This is precisely why even those who own such agricultural land in India, are not free to use it for any other purpose – residential, commercial or industrial. If the owner wants to use his farm land …


How much is the fee for a land in Rajasthan?

In Rajasthan, a fee of Re 1 per sq metre for an area up to 2,000 sq metres has to be paid, if the land is located in a village with a population of less than 5,000 people. On the other hand, a fee of Rs 2 per sq metre for an area not exceeding 2,000 sq metres has to be paid, if the land is located in a village with a population of more than 5,000 people. In the same village, a charge of Rs 4 per sq metre has to be paid, if the area exceeds 2,000 sq metres.


What does RTC stand for in agriculture?

RTC (record of rights, tenancy and crops).


What is the primary step for land conversion?

The primary step for land conversion is getting the approval from the competent revenue authority i.e. Collector/ SDO/ Tehsildar. An application has to be sent to the competent authority for ‘change of land use’ explaining the purpose of such conversion. The application shall comprise of:


What is non agricultural land?

A non-agricultural land is a developed land or barren land, unfit for cultivation. If you own an agricultural land and want to erect a building for residential or industrial or commercial purposes by conversion, it is possible. Law does not otherwise permit any kind of construction on an agricultural land.


How to convert land for residential use?

For converting your agricultural land for residential purposes, you have to approach either to the planning authority in your city or the revenue department. For instance, land owners have to approach the revenue departments of their cities for the conversion, in states such as Maharashtra, Karnataka, Rajasthan and Uttar Pradesh. [2]


Who is authorized to convert agricultural land into non-agricultural land?

6. It is now the duty of the Deputy Commissioner or Collector who is authorized to permit the conversion of agricultural land into non-agricultural land. Deputy Commissioner or Collector will only allow conversion if they are satisfied that the necessary conditions have been met and there are no pending fees or litigation on the land.


What is Agricultural Land?

Agricultural land is generally defined as the part of the earth’s surface that is found in permanent pastures, crops or arable land, etc. Agricultural land is explained according to different state statutes. According to the collection of development indicators by the World Bank, agricultural land in India would have been 60.41% in 2014.


What is the process of registering a land?

Registration of the land: Registration is the process by which a copy of a document is recorded and the title of the immovable property in the name of the buyer is transferred to the registrar’s office.


What is a conveyance deed?

Conveyance deed or sale deed of the land: A deed of sale is a document that transfers the title of the property from the seller to the buyer. This document will help you understand the ownership of the property and the details such as site measurement, boundary details, etc.


How long does a county encumbrance last?

A certificate of encumbrance can be obtained from the registrar’s office for the last 13 or 30 years to ensure that the county has no legal duties or complaints.


What is required to change land use?

1. A mandatory permission from the local authorities is required to effect a ‘land use change’. “An application form must be sent to the Commissioner of the Department of Land Revenue to explain the reason for the conversion. 2.

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Defining Land Use Conversion


Is Any Agricultural Land Eligible For Land Use Conversion?

  • The short answer is no. The long answer, however, is divided into three categories: convertible lands, non-negotiable areas for conversion and highly restricted areas for conversion. Agricultural lands eligible for conversion should be reclassified into non-agricultural uses such as commercial, industrial and residential through the local governmen…

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Streamlined Processes

  • Through its Administrative Order (AO) No. 1, Series of 2019, the department has now revised its guidelines and methods aimed at streamlining the long process of land use conversion in the Philippines. This was done by amending specific provisions on AO No. 1, Series of 2002 in hopes of hastening the process of land conversion cases. To start, only the landowner or his/her duly a…

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Towards Smoother Public Transactions

  • Simplifying major laws such as the 2002 Comprehensive Rules on Land Use Conversion is an excellent executive method, thanks to the department’s initiative. However, this isn’t merely for avoiding additional yet unnecessary fees in securing individual clearances. Instead, amendments of similar goals will allow the country to develop a comprehensive land policy framework that uti…

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