Points on NA Conversion in AP

Ø      This Act is called “Andhra Pradesh Agriculture Land (Conversion for Non-agriculture Purpose) Act, 2006”

Ø      This Act came into force from January 2, 2006

Ø      The government has passed this Act for regulating the conversion of agricultural land in the state of Andhra Pradesh to non-agricultural purposes and for matters connected therewith or incidental there to.

Ø      And to repeal the “Andhra Pradesh Non-Agricultural Land Assessment Act,1963”

Some important definitions under the Act :

Ø      “Agriculture” means-

·        the raising of any crop or garden produce ; or

·        the raising of orchards ; or

·        the raising of pasture ; or

·        Hay- ricks ;

Ø      ‘Agriculture lands’ means lands used for agriculture

Ø      ‘Conversion’ means change to land use from agricultural to non-agricultural purposes ;

Ø      ‘Non-agricultural land’ means land other than Agricultural land;

Ø      ‘Owner’ includes any person for the time being receiving or entitled to receive, whether on his awn account, or as 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 ;

·        a lessee, if the land has been leased out by the Government for any non-agricultural purpose ; and

·        a local authority, if land is vested in the local authority and used for any non-agricultural purpose deriving income there from.

Some important points :

·        No agricultural land shall be used for non-agricultural purpose without prior permission of the competent authority.

·        An application shall be made by the owner for conversion of the land for non-agricultural purpose before RDO under prescribed form.

·        An amount of Rs. 9% on the basic value of the land shall have to pay, a conversion tax for non-agricultural purpose.

·         If the agricultural land in the areas covered under GHMC (Greater Hyderabad Municipal Corporation), GVMC (Greater Visakhapatnam Municipal Corporation), VMC (Vijayawada Municipal Corporation) shall have to pay a conversion tax for non-agricultural purpose, at the rate of 5% of the basic value of the land.

·        ‘Basic Value’ means the land value entered in the Basic Value Register maintained by Sub-Registrar.

·        Basic Value for the purpose of calculation shall be taken as on the date of application.

·        The tax shall pay by way of challan into the Government Treasury and the same has to submit along with application.

·        If the conversion tax so paid is less than the prescribed, a notice shall be issued by the RDO within 30 days under section 4 from the date of application.

·        The applicant shall pay the deficit conversion tax within 15 days from the date of receipt of such notice.

·        In case no notice is received by applicant within 30 days from the date of application, it shall be deemed that the amount paid is sufficient for the purpose.

·        The RDO may cause such enquiry as may be necessary to determine, whether the conversion applied for is objectionable or not.

·        The RDO may invite objections in this regard, if necessary.

·        The RDO may inspect the land in order to determine whether or not the proposed conversion is objectionable.

·        The RDO shall take cognizance of the master plan and other documents in determining, whether the proposed conversion is objectionable or not.

·        The RDO shall thereafter proceed to pass orders, ordering or rejecting the proposed conversion.

·        The RDO has to give permission or reject the application within 60 days from the date of application.

·        If no order is passed by RDO within the time (60 days) prescribed in sub-section 6, the required permission shall be deemed to have been given.

·        The RDO or any other officer, authorized by him shall have power to inspect the land for determination of the area applied for conversion and fixation of conversion tax.

·        If the agricultural land has been put to non-agricultural purpose without obtaining the permission as required under the Act, the competent authority shall impose a fine of 50% over and above the conversion tax.

·        After receipt of the notice the applicant shall pay the penalty amount within 30 days from the date of receipt of such notice.

·        Any tax or penalty which remains unpaid after receiving the notice, shall be recoverable as per the provisions of the Andhra Pradesh Revenue Recovery Act, 1864.

·        Any person aggrieved by an order of the RDO may file an appeal before the Collector with in 60 days from the date of receipt of the orders.

·        Collector shall observe the principles of natural justice in disposing off any appeal.

Act not to apply to certain lands :

§         Lands owned by the State Government.

§         Lands used for communal purpose.

§         Lands used for religious or charitable purposes.

§         Lands used by owner for household industries involving traditional occupation, not exceeding one acre.

§         Lands used for such other purposes as may be notified by the government from time to time.

§         Lands used for Aquaculture, Dairy and Poultry.

Bar of Jurisdiction: - Save as otherwise expressly provided in the Act, no Court shall entertain any suit, or other proceeding to set-aside or modify, or question the validity of deficit tax under Section 3 or fine imposed under Section 6, or order or decision made or passed by any officer or authority under the Act or any rules made thereunder, or in respect of any other matter falling within its scope

GPA Holder can convert the land into Non-Agricultural Purpose : - There is no provision to prevent the GPA holder to convert the agricultural land into Non-Agricultural purpose. But, the right to convert the land into Non-Agricultural purpose should be given by the principle owner to the GPA holder