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Procedureofconversionofagriculturallandtonon
agriculturalpurposesinthestateofAndhraPradesh

PostedonAugust17,2007bypropertymixer
(hp://www.propertymixer.com/blog/uploaded_images/Juris788248.JPG)

63352/1,4thFloor,OsmanPlaza,NearNagarjunaHillsCircle,RoadNo.1,BanjaraHills,Hyderabad
500034.PhoneNos:Board:04040144996DirectcumFaxNo.04066466037MobileNo.09866446467E
Mail:raju@jurisprime.com(mailto:raju@jurisprime.com)vvsnraju3@yahoo.co.in

hp://www.jurisprime.com/(hp://www.jurisprime.com/)

If you want to purchase a plot on the outskirts of the Hyderabad city? First, seek a land conversion
certicatefromdevelopers/Ownersasitismandatorytogetpermissionforconstructionofahouseora
commercialspaceinthestateofAndhraPradesh.Asperreports,asmanyas341layoutsinHyderabad
have sprung up on agricultural land. Developers/Owners had illegally converted farm land for non
agriculturalpurposes,particularlyhousingplots,withoutinformingrevenueauthorities.

Withskyrocketinglandprices,especiallyontheoutskirtsofthecity,farmlandwasbeingconvertedinto
layouts and sold to people by dividing them into plots with out obtaining permission from the
Government.

AspertheAndhraPradeshAgricultureLand(ConversionforNonagriculturePurpose)Act,2006,any
Owner converting agricultural land for nonagricultural purposes should pay 10 per cent of the basic
value towards conversion fee. If the land has already been converted for nonagricultural purposes
illegally before January, 2006, they would have to pay fty per cent fee penal amount apart from the
conversionfee.Thefeecanbepaidtotherevenuedivisionaloceroftheconcernedrevenuedivision.

The Director of Town and Country Planning (DTCP) and Hyderabad Urban Development Authority
(Huda)shallnottoissuepermissionsforlayoutwithoutthemandatorylandconversioncerticate.Now
letusseetheprovisionsoftheAct.

TheGovernmentofAndhraPradeshhaspassedTheAndhraPradeshAgriculturalLand(conversionfor
nonagricultural purposes) Act,2006 (the Act) for regulating the conversion of agricultural land in the
stateofAndhraPradeshtononagriculturalpurposesandformaersconnectedtherewithorincidental

there to and to repeal the Andhra Pradesh NonAgricultural Land Assessment Act,1963 and the same
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there to and to repeal the Andhra Pradesh NonAgricultural Land Assessment Act,1963 and the same
wasreceivedtheassentoftheGovernoronDecember30,2005andthesaidassentwaspublishedinthe
GazeeofAndhraPradeshGovernmentonJanuary2,2006(eectivedate).

Denitions:

(i)Agriculturemeans

(a)theraisingofanycroporgardenproduce;or
(b)theraisingoforchards;or
(c)theraisingofpasture;or
(d)Hayricks;

(ii)Agriculturelandsmeanslandsusedforagriculture;
(iii)Conversionmeanschangetolandusefromagriculturaltononagriculturalpurposes;
(iv)NonagriculturallandmeanslandotherthanAgriculturalland;
(v)GovernmentmeanstheStateGovernmentofAndhraPradesh;
(vi) Collector means the District Collector in whose jurisdiction the agricultural land for which
conversionisappliedforissituatedandalsoincludesJointCollectororanyothernotbelowtherankof
theJointCollectorauthorizedbytheGovernmenttoexercisethepowersandperformthefunctionsof
theDistrictCollectorunderthisAct;
(vii)RevenueDivisionalOcermeans,theRevenueDivisionalOcerincludingSubCollectororAsst.
Collectorinwhosejurisdictiontheagriculturallandorpartthereofissituatedandincludesanyocer
not below the rank of a Revenue Divisional Ocer empowered by the Government to exercise the
powersandperformthefunctionsoftheRevenueDivisionalOcerunderthisAct;
(viii)MandalRevenueOcermeanstheMandalRevenueOcer,inwhosejurisdictiontheagricultural
landorapartthereofissituated,andincludesanyOcernotbelowtherankofaMROempoweredby
theMandalRevenueOcerunderthisAct;
(ix) Mandal Revenue Inspector means the Mandal Revenue Inspector in whose jurisdiction the
agricultural land or a part thereof is situated and includes any ocer empowered by the Revenue
Divisional Ocer to exercise the powers and perform the functions of a Mandal Revenue Inspector
underthisAct;
(x)PrescribedmeansprescribedbyRulesmadebytheGovernmentunderthisAct;
(xi)NoticationmeansanoticationpublishedintheAndhraPradeshGazea;andthewordNotied
shallbeconstruedaccordingly;
(xii)Occupierincludes:

(i)Anypersonforthetimebeingpayingorliabletopaytotheownerrent,oranyportionoftherent,for
thelandor,forthestructureconstructed;

(ii)Arentfreeoccupant;

(xiii)Ownerincludesanypersonforthetimebeingreceivingorentitledtoreceive,whetheronhisawn
account, or as agent, trustee, guardian, manager or receiver, for another person, or for any religious,
educationalorcharitablepurpose,rentorprotsfortheagriculturallandorforthestructureconstructed
onsuchlandandincludesinrespectofthelandsthathavebeenleasedoutbytheStateGovernmentor
theCentralGovernment;

(i)alessee,ifthelandhasbeenleasedoutbytheGovernmentforanynonagriculturalpurpose;and

(ii)alocalauthority,iflandisvestedinthelocalauthorityandusedforanynonagriculturalpurpose
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(ii)alocalauthority,iflandisvestedinthelocalauthorityandusedforanynonagriculturalpurpose
derivingincometherefrom.

Sections3to8oftheActprovidesforproceduretobefollowedforconversionofagriculturallandfor
nonagriculturalpurpose,penaltiesandappealprovisions.

3.LanduseConversion:

(1)NoagriculturallandtheStateshallbeputtononagriculturalpurposes,withoutthepriorpermission
ofthecompetentauthority.

(2) An application for such conversion of the agricultural land for nonagricultural purposes shall be
made before the competent authority in the form prescribed along with conversion fee as specied
underSection4.

(3)Iftheconversionfeesopaidaspersubsection(2)isfoundtobelessthanthefeeprescribedunder
Section 4, a notice shall be issued by the competent authority to the applicant within 30 days of the
receiptofapplicationintimatinghimthedecitamount.

(4)Theapplicantshallpaythedecitamountindicatedinthenoticeissuedundersubsection(3)within
fteendaysofthereceiptofsuchnotice.

(5) In case no intimation is received by the applicant within 30 days about the decit payment of
conversionfees,itshallbedeemedthattheamountpaidissucientforthepurpose.

(6)Inconversionpermissionrequestforshalleitherbeissued,rejectedinfullorpartbythecompetent
authority within sixty days after such request is received on the ocer of the competent authority or
withinthirtydaysafterthereceiptofthedecitamountasthecasemaybe,providedthatsuchrequest
are rejected, the reasons for such rejection shall be recorded in writing and communicated to the
applicant:

Provided that, if no order is passed on such request, within the time prescribed in subsection (6), the
requiredpermissionshallbedeemedtohavebeengiven.

4.Powertolevyandcollectconversionfee:

(1) With eect on and from the date of commencement of this Act, every owner or occupier of
agriculturallandshallhavetopayaconversionfeefornonagriculturalpurposes,oftherateof10%of
thebasicvalueofthelandinareasasmaybenotiedbytheGovernmentfromtimetotime.

(2)Forthepurposeofthissection,thebasicvalueofthelandshallbexedinsuchmannerasmaybe
prescribed.

5. Authority competent to convert agricultural land for nonagricultural purpose: The Revenue
Divisional Ocer or any ocer to be notied by the Government in this behalf shall be competent to
order, in respect of the lands situated within his territorial jurisdiction, conversion of land use from
agriculturalpurposetononagriculturalpurpose.

6.Penalty:

(1)Ifanyagriculturallandhasbeenputtononagriculturalpurposewithoutobtainingthepermissionas
required under Section 3, the land shall be deemed to have been converted into nonagricultural
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required under Section 3, the land shall be deemed to have been converted into nonagricultural
purpose.

(2)Uponsuchdeemedconversion,thecompetentauthorityshallimposeaneof50%overandabove
theconversionfeeforthesaidlandspeciedunderSection4insuchmannerasmaybeprescribed.

(3) The owner or occupier of the land shall pay the ne so imposed under SubSection (2) in such
mannerasmaybeprescribed.

(4)Anyfeeorpenaltywhichremainsunpaidafterthedatespeciedundersubsection(2)forpayment,
shellberecoverableaspertheprovisionsoftheAndhraPradeshRevenueRecoveryAct,1864.

7.Actnottoapplytocertainlands:NothinginthisActshallapplyto

(a)LandsownedbytheStateGovernment;

(b)Landsownedbyalocalauthorityandusedforanycommunalpurposessolongasthelandisnot
usedforcommercialpurposes;

(c)Landsusedforreligiousorcharitablepurposes;

(d)Landsusedbyownerforhouseholdindustriesinvolvingtraditionaloccupation,notexceedingone
acre;

(e)LandsusedforsuchotherpurposesasmaybenotiedbytheGovernmentfromtimetotime;

8. Appeal: Any person aggrieved by an order of the Revenue Divisional Ocer may le an appeal
beforetheCollectorwithinsixtydaysofreceiptofsuchorderbytheapplicant.

Otherprovisionsareasfollows:

9.ActtoOverrideotherLaws:TheprovisionsofthisActshallhaveeectnotwithstandinganythingin
consistent therewith contained in any other law for the time being in force, or any custom or usage
havingtheforceoflaworcontractorjudgmentdecreeororderofacourtoranyotherauthority

10.Powertogivedirections:ForthepurposeofgivingeecttotheprovisionsofthisActitshallbe
competentfortheGovernmenttoissuesuchdirectionsastheymaydeemttoanyocer,authorityor
personssubordinatetotheGovernment.

11.BarofJurisdiction:SaveasotherwiseexpresslyprovidedintheAct,noCourtshallentertainany
suit,orotherproceedingtosetasideormodify,orquestionthevalidityofdecitfeeunderSection3or
neimposedunderSection6,ororderordecisionmadeorpassedbyanyocerorauthorityunderthe
Actoranyrulesmadethereunder,orinrespectofanyothermaerfallingwithinitsscope.

12.Protectionofactiontakeningoodfaith:Nosuit,prosecutionorotherlegalproceedingsshallbe
institutedagainstanypersonforanythingwhichisingoodfaithdoneorintendedtobedoneunderthis
Actorundertherulesmadethereunder.

13.Powertoremovediculties:IfanydicultyarisesingivingeecttotheprovisionsofthisAct,the
GovernmentmaybyorderintheAndhraPradeshGazeemakesuchprovisionsnotinconsistentwith
thepurposesorprovisionsofthisActasappeartothemtobenecessaryorexpedientforremovingthe
diculty.
14.Powertomakerules:
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14.Powertomakerules:

(1)TheGovernmentmaybynoticationmakerulesforcarryingoutalloranyofthepurposesofthis
Act.

(2) Every Rules made under this Act shall immediately after it is made, be laid before the Legislative
Assembly of the State, if it is in the session and if it is not in session, in the session immediately
following, for a total period of fourteen days which may be comprised in one session, or in two
successive sessions, and if before the expiration of the session in which it is so laid or the session
immediatelyfollowingtheLegislativeAssemblyagreesinmakinganymodicationintheruleorinthe
annulmentoftherule,theruleshallfromthedateonwhichthemodicationorannulmentisnotied
haveeectonlyinsuchmodiedformorshallstandannulledasthecasemaybe,sohowever,thatany
suchmodicationorannulmentshallbewithoutprejudicetothevalidityofanythingpreviouslydone
underthatrule.

15.RepealofAct14of1963:

(1)TheAndhraPradeshNonAgriculturalLandsAssessmentAct,1963isherebyrepealed.

(2)Uponsuchrepeal,

(a)TheprovisionsofSection8oftheAndhraPradeshGeneralClausesAct,1891shallapply;

(b) All the outstanding arrears from individuals/institutions under the Andhra Pradesh Non
AgriculturalLandsAssessmentAct,1963asonthedateofcommencementofthisActshallberecovered
undertheprovisionsoftheAndhraPradeshRevenueRecoveryAct,1864.

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Filedunder:2006,AndhraPradesh,AndhraPradeshAgriculturalLandAct,conversionofagricultural 5/6
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Filedunder:2006,AndhraPradesh,AndhraPradeshAgriculturalLandAct,conversionofagricultural
landtononagriculturalpur,Hyderabad,Legal,onlinerealestate

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Realtor

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