Converting agricultural land to non-agricultural use (often called land conversion or getting an NA conversion) is a common but tricky step when you want to build a house, start an industry, or develop a plot for commercial use. Rules vary by state, paperwork matters, and missing a small step can stop your project or attract penalties.
This plain-English guide explains the AG to non-AG conversion process, who approves it, typical documents, realistic fees and timelines, common pitfalls, and simple checklists you can use today. Read this before you pay a token or sign any deal.
Quick Summary (What You Need to Know First)
Land conversion is a state government function; each state has its own process and fees. You must follow the rules that apply where the land sits.
Typical steps: verify land class → apply at revenue office (Collector / Tehsildar / SDM) → site inspection & NOC requests → pay conversion tax/fees → receive official NA/land-use certificate. Many states now allow some part of this online, but field verification remains mandatory.
Conversion fees and eligibility differ widely (some states have high conversion taxes, others are reforming rules to speed industrial or municipal development). Recent reforms in states like Maharashtra and Andhra Pradesh show that the legal landscape is changing rapidly — always check the current state circular or portal.
Why People Convert Agricultural Land
- Build a house or farmhouse
- Subdivide and sell residential plots
- Establish a commercial business, warehouse or factory
- When a change in the master plan makes agricultural land better suited for development
Using agricultural land for non-agricultural purposes without conversion is usually illegal and risks fines, demolition or loss of title benefits — so don’t skip the official process.
Who Decides — The Authorities You’ll Meet
- District Collector / Deputy Commissioner / SDM / Tehsildar — primary revenue officers who accept applications and issue orders for conversion.
- Town/Urban Planning body or Municipal Corporation — approvals required when converted land is to be used within municipal limits.
- Special departments like Environment, Forest, Irrigation, or Mines — may ask for NOCs if land is near protected areas, water bodies or mineral zones.
Many states now publish Bhulekh / Bhu-Naksha / DILRMP portals to view land classification and start online applications, but site visits by revenue staff remain mandatory.
Step-by-Step Workflow You Can Follow
1. Confirm the Current Land Classification and Title
Check revenue records such as khasra, khata, 7/12 extract or RoR. Make sure the seller’s name matches records. If the land is under dispute, conversion will be blocked.
2. Determine Local Zoning and Restrictions
Confirm if the land falls under restricted zones like CRZ, forest land, or prescribed agricultural limits.
3. Collect Required Documents (Typical List)
- Registered sale deed / mother deed chain
- Latest RoR / 7/12 extract and survey sketch
- Encumbrance certificate (EC) for 12–30 years
- ID proof (Aadhaar, PAN) and latest tax receipts
- Site plan/sketch showing drainage and approach
- NOC letters if required (pollution control, irrigation, electricity, etc.)
4. File the Conversion Application
Apply at the Tehsildar / SDM / Collector office or use the state’s online portal where available. Mention the intended use (residential, commercial, industrial).
5. Site Inspection and Verification
Revenue staff inspect the land, check boundaries and confirm usage. A report is forwarded for approval.
6. NOCs & Departmental Clearances
Depending on location and proposed use, NOCs may be needed from departments like Environment, Irrigation, or Town Planning.
7. Pay Conversion Fee / NA Assessment
States charge conversion fees based on circle rate or fixed slab. Always check updated rates.
8. Issue of NA Certificate or Conversion Order
After approvals and fee payment, the order is issued. Ensure it is recorded in revenue records and municipal plans if you plan to build.
State Examples (How Rules Differ)
- Maharashtra: Apply to Collector/Tehsildar; NOCs from planning/environment; fees under Land Revenue Code. Recent reforms are simplifying industrial use.
- Karnataka: Applications via Bhoomi portal; still needs inspection and NOCs. Timelines are often shorter where online workflows exist.
- Uttar Pradesh: Process under Rule 143. Involves Lekhpal survey, Tehsildar recommendation and SDM order. Fees vary by project size.
- Tamil Nadu: File Form I at local municipality/panchayat with plan and documents. Municipal rules determine final approvals and fees.
Costs Involved
- Conversion fee / NA tax — biggest cost; can be a percentage of market value or slab rate.
- Professional fees — surveyors, advocates, architects.
- Stamp duty & registration — when selling or changing title post-conversion.
- NOC charges — environment or departmental approvals.
Typical Timelines
- Small plots with no NOCs: 1–2 months
- Plots with multiple NOCs: 3–6 months
- Large projects (industrial, subdivisions): 6–12 months
Common Problems and How to Avoid Them
- Title mismatches or missing deeds → Get full chain of title and EC.
- Wrong zoning or restricted land → Verify with master plan.
- Under-estimating fees → Always confirm with revenue office.
- Assuming online approval is final → Physical inspection is always required.
Practical Tips & ROI Checks
- Ask seller for EC and paid receipt history.
- Get a preliminary revenue opinion from a local consultant.
- Negotiate land price keeping conversion cost/time in mind.
- Track new policies on automatic conversions for industrial use in some states.
Who Can Help
- Revenue consultants / advocates — handle forms and file chasing.
- Licensed surveyors & architects — prepare official site plans.
- Property lawyers — handle encumbrances or disputes.
Example
Ravi bought 0.2 acre near a Karnataka town. He:
- Verified survey number and title online.
- Hired a surveyor for site plan.
- Filed conversion application online with Tehsildar.
- Got NOC from electricity department.
- Site was inspected, and NA order issued in 45 days.
Because Ravi had clear title and no restrictions, the process was smooth. If the land had been in CRZ or had missing deeds, costs and delays would have increased.
Checklist (Print and Take to the Tahsildar)
- Registered sale deed / chain of deeds
- RoR / 7-12 extract and survey sketch
- Encumbrance certificate
- ID proof (PAN/Aadhaar)
- Tax receipts and utility bills
- Site plan/sketch with proposed use
- NOC documents (if asked)
- Filled application form
- Proof of fee payment
Final Legal Caution
Always get the final NA order in writing and update revenue records. Until updated, enforcement and resale may face issues. Banks also insist on registered NA orders before lending.