Conversion of agricultural land into non-agriculture purposes by taking prior permissions from competent revenue authorities by paying prescribed tax.
To cater to the misuse of agricultural land use the government has imposed the guidelines in the Telangana Agricultural Land (Conversion Of Non- Agriculture Purpose) Act 2006.
The Andhra Pradesh Agricultural Land (Conversion for Non Agricultural purposes) Act, 2006 received the assent of the Governor on the 30th December 2005. The said Act in force in the combined State, as of 02.06.2014, has been adapted to the State of Telangana, under section 101 of the Andhra Pradesh Reorganisation Act, 2014 (Central Act 6 of 2014) vide. the Notification issued in G.O.Ms.No.4, Revenue (Land Matters) Department, dated 05.01.2016.
Substituted by G.O.Ms.No.4, Revenue (Land Matters) Department, dated 05.01.2016.
The NALA Act extends to the whole state of Telangana.
To give the complete understanding of the land conversion of agricultural land to non-agriculture this Act has given certain definitions to understand and get proper guidelines for implementation.
“Agriculture” means,- (i) the raising of any crop or garden produce; or
(ii) the raising of orchards; or
(iii) the raising of pasture; or
“Agriculture lands” means lands used for agriculture;
“Conversion” means the change of land use from agricultural to non-agricultural purposes;
“Non-agricultural land” means land other than agricultural land;
“Government” means the State Government of Telangana;
“Collector” means the District Collector in whose jurisdiction the agricultural land for which conversion is applied for is situated and also includes Joint Collector or any other officer not below the rank of the Joint Collector authorized by the Government to exercise the powers and perform the functions of the District Collector under this Act;
“Revenue Divisional Officer” means the Revenue Divisional Officer including Sub-Collector or Asst. Collector in whose jurisdiction the agricultural land or a part thereof is situated and includes any officer not below the rank of a Revenue Divisional Officer empowered by the Government to exercise the powers and perform the functions of the Revenue Divisional Officer under this Act;
“Mandal Revenue Officer” means the Mandal Revenue Officer, in whose jurisdiction the agricultural land or a part thereof is situated, and includes any officer not below the rank of an MRO empowered by the Government to exercise the powers and perform the functions of the Mandal Revenue Officer under this Act;
“Mandal Revenue Officer” means the Mandal Revenue Officer, in whose jurisdiction the agricultural land or a part thereof is situated, and includes any officer, not below the rank of an MRO empowered by the Government to exercise the powers and perform the functions of the Mandal Revenue Officer under this Act;
“Prescribed” means prescribed by rules made by the Government under this Act;
“Notification” means a notification published in the 4Telangana Gazette and the word “Notified” shall be construed accordingly;
“Occupier” includes: (i) Any person for the time being paying or liable to pay to the owner rent, or any portion of the rent, for the land or for the structure constructed;
(ii) A rent-free occupant;
“Owner” includes any person for the time being receiving or entitled to receive, whether on his own account, or as an agent, trustee, guardian, manager or receiver, for another person, or for any religious, educational or charitable purpose, rent, or profits for the agricultural land or for the structure constructed on such land and includes in respect of the lands that have been leased out by the State Government or the Central Government,-
(i) a lessee, if the land has been leased out by the Government for any non-agricultural purpose; and
(ii) a local authority, if the land is vested in the local authority and used for any non-agricultural purpose deriving income therefrom.
No agricultural land in the State shall be put to nonagricultural purpose, without the prior permission of the competent authority.
An application for such conversion of the agricultural land for non-agricultural purposes shall be made before the competent authority in the form prescribed along *with conversion [tax] as specified under section 4.
If the conversion * [tax] so) is found to be less than the * [tax] prescribed, a notice shall be issued by the competent authority to the applicant 5 [within 7 days] of the receipt of application intimating him the deficit amount.
The applicant shall pay the deficit amount indicated in the notice issued under[within one week] of the receipt of such notice.
In case no intimation is received by the applicant 5 [within 7 days] about the deficit payment of conversion * [tax], it shall be deemed that the amount paid is sufficient for the purpose.
The conversion permission requested shall either be issued, rejected in full or part by the competent authority 5 [within fifteen days] after such request is received in the office of the competent authority or 5 [within 7 days] after the receipt of the deficit amount as the case may be, provided that such requests 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, the required permits shall be deemed to have been given.
Power to levy and collect conversion tax.
With effect on and from the date of commencement of this Act, every owner or occupier of agriculture land shall have to pay a conversion [tax] for non-agricultural purposes, at the rate of [3%] of the basic value of the land in areas as may be notified by the Government from time to time:
[Provided that the owner or occupier of agricultural land in the areas covered under Greater Hyderabad Municipal Corporation,[XXX] shall have to pay a conversion tax for non-agricultural purposes, at the rate of [2%] of the basic value of the land.]
For the purpose of this section, the basic value of the land shall be fixed in such manner as may be prescribed.
Authority competent to convert agricultural land for the nonagricultural purpose.
The Revenue Divisional Officer or any officer to be notified by the Government on this behalf shall be competent to order, in respect of the lands situated within his territorial jurisdiction, conversion of land use from agricultural purpose to non-agricultural purpose.
The penalty will be imposed if the land is used without obtaining permission.
If any agricultural land has been put to nonagricultural purposes without obtaining the permission as required, the land shall be deemed to have been converted for non-agricultural purposes.
Upon such deemed conversion, the competent authority shall impose a fine of 50% over and above the conversion [tax] for the said land in such manner as may be prescribed.
The owner or occupier of the land shall pay the fine so imposed in such manner as may be prescribed.
Any [tax] or penalty which remains unpaid after the date specified for payment, shall be recoverable as per the provisions of 10the Telangana Revenue Recovery Act, 1864.
Act not to apply to certain lands.
Nothing in this Act shall apply to,- (a) Lands owned by the State Government;
(b) Lands owned by a local authority and used for any communal purposes so long as the land is not used for commercial purposes;
(c) Lands used for religious or charitable purposes;
(d) Lands used by the owner for household industries involving traditional occupation, not exceeding one acre; (e) Lands used for such other purposes as may be notified by the Government from time to time;
(f) Lands used for Aquaculture, Dairy, and Poultry.
Appeal to competent authorities.
Any person aggrieved by an order of the Revenue Divisional Officer may file an appeal before the Collector within sixty days of receipt of such order by the applicant.
Power to give directions to the officer.
For the purpose of giving effect to the provisions of this Act, it shall be competent for the Government to issue such directions as they may deem fit to any officer, authority, or person subordinate to the Government.
NALA Act does not apply to the below types of lands.
If a land owned by Central or State Government but does not include lands leased out for a non-agricultural purpose, NALA is not significant
Land vested in local authority and used for the non-agricultural purpose cannot be converted as per NALA
If a land owned by a local authority and used for any commercial purpose but so long as no income is derived from this land, NALA is not applicable
NALA is not applicable for the land of any charitable or religious, educational institution
NALA tax excludes the lands that are exclusively for the residential purpose where its extent does not exceed one hundred square meters
NALA is not applicable for lands in estates that are not under Government
Documents required to applying for conversion.
Application form for Land Conversion
Basic Value certificate from Sub-Registrar
Land title deed
Procedure for land conversion
The landowner needs to submit the land conversion form online through the MeeSeva center by paying prescribed fees.
After approval of the application, a competent authority (Revenue inspector) will issue a notice of demand. MeeSeva operator will provide the Receipt of Intimation of payment for land conversion.
The assessment is payable within 30 days from the date of service of demand notice. The landowner can pay a one-time conversion tax to the Government by challan. After paying the tax, obtain a copy of the challan. After-Tax payment, the Revenue officer will issue a certificate within 30 days.
After the landowner receiving the certificate, he or she will have to convert agricultural land to non-agriculture purposes such as industrial, commercial, and residential purposes.
The Revenue inspector will inspect and measure the converted agricultural land. In the case of deceitful land conversion, the officer will issue a notice to the landowner.
The District Collector will review the records for every three months, whether the converted land is used for the intended purpose.
The penalty is imposed on landowners using the agricultural land for other purposes without taking permission from competent authorities the land is deemed to be converted to non-agricultural purposes. Upon such deemed conversion, the revenue officer imposes a penalty of 50% for conversion fees.