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Land & Property Records

Land Conversion: Changing Agricultural Land to Non-Agricultural Use

To build on farmland you need its use converted under your state's land revenue law. Maharashtra and Karnataka now run this mostly online with fixed timelines.

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Written by Ananya Iyer

Published 23 October 2026·7 min read

On this page10 sections
Credsir Land & Property Records guide cover with a land plot icon

Land recorded as agricultural cannot be used for a house, shop or factory until its use is converted under your state’s land revenue law. Each state runs its own process. Karnataka now takes an online application with a notarised affidavit. Maharashtra dropped separate NA permission from 31 December 2025 where the development plan allows the use, and charges a one-time premium instead.

Key facts by state

State Law Who decides What changed recently
Maharashtra Section 42, Maharashtra Land Revenue Code, 1966 Planning authority, through development permission No Collector permission if the plan allows the use; one-time premium of 0.1% to 0.5% of ready reckoner value replaces annual NA tax (from 31 Dec 2025)
Karnataka Section 95, Karnataka Land Revenue Act, 1964 Planning authority (master plan areas) or Deputy Commissioner (other land) Notarised affidavit on ₹200 stamp paper; DC decides within 15 days of reports; deemed provisional approval after 30 days (rules notified 23 Dec 2025)
Odisha Section 8A, Odisha Land Reforms Act, 1960 Authorised revenue officer, usually the Tahasildar Online application on the Odisha revenue services portal

Other states have their own rules, forms and fees. Check with the tahsil or collectorate before you buy or build.

Why conversion is required

State land revenue laws let farmland be held and assessed for farming. Using it for anything else without the required permission or premium is a breach of those laws. In Karnataka, it can lead to cancellation, forfeiture of the land and daily fines.

Conversion also matters in practice. Planning authorities will not approve a building plan for land whose use is not permitted, and lenders check the land’s status before a loan for a plot or construction. If you are weighing a plot against a flat, our comparison of plot vs flat vs builder floor covers the other checks.

Who approves it

Maharashtra

The Maharashtra Land Revenue Code (Second Amendment) Act, 2025 substituted Section 42. From 31 December 2025, no Collector permission is needed to use agricultural land for non-agricultural purposes if the draft or final Development Plan or Regional Plan allows that use. The planning authority (municipal corporation, council, nagar panchayat or special planning authority) grants development permission, and the revenue records are then updated.

Sections 42A to 42D (deemed conversion) and the separate NA sanad process were deleted. Two cases still need the Collector: land where the plan does not allow the use or no plan applies, and Class-II (restricted tenure) land.

Karnataka

Under the Karnataka Land Revenue (Amendment) Rules notified on 23 December 2025, land inside an approved master plan area needs no prior Deputy Commissioner permission. You apply to the planning authority, which issues a digital payment receipt and informs the DC. For all other land, the Deputy Commissioner decides. New industries on up to two acres and renewable energy projects approved under the state’s policy get auto conversion without DC permission.

Odisha

Section 8A of the Odisha Land Reforms Act, 1960 governs conversion. You apply to the authorised officer, and the conversion must fit the master plan or development scheme for the area. The state’s revenue services portal lists “Apply for Conversion of Agricultural Land U/s 8(A) of OLR Act” as an online service.

Documents

Lists differ by state. Expect most of these:

  • Current record of rights: 7/12 extract (Maharashtra), RTC (Karnataka) or khatiyan (Odisha)
  • Mutation entries showing how you acquired the land
  • Registered sale deed or other title document
  • Survey sketch, and a pre-conversion sketch if only part of the survey number is converted
  • Extract of the master plan or development plan showing the permitted zone
  • Identity proof of the owner
  • In Karnataka: a notarised affidavit on non-judicial stamp paper of at least ₹200, in Form 21B (master plan land) or Form 21C (other land)

Clean title matters here too. A title search report will show gaps in the mutation chain before you apply.

How to apply

Maharashtra

  1. Confirm the land’s zone in the Development Plan or Regional Plan.
  2. Apply for development permission to the planning authority under Section 18 of the Maharashtra Regional and Town Planning Act, 1966, online through the Building Permission Management System (BPMS) where it is available.
  3. Pay the one-time premium to the Revenue Department on the GRAS portal.
  4. After permission is granted, the conversion is recorded in the revenue records through BPMS, or the authority informs the Tahsildar.

Karnataka

  1. Prepare the affidavit (Form 21B or 21C) on ₹200 stamp paper and get it notarised.
  2. Apply online with the affidavit and documents. Incomplete applications can be rejected summarily.
  3. For land outside master plan areas, the DC must seek reports from the town planning authority and the Tahsildar within 15 days, and decide within 15 days of receiving them.
  4. If approved, pay the conversion fee against the demand notice within 30 days. A final 30-day chance is given, then the application is rejected; instalments are not allowed.
  5. Download the digitally signed conversion order.

Fees and how they are worked out

In Maharashtra, the new Section 47 sets a one-time premium on the current market value in the Annual Statement of Rates (ready reckoner):

Area of land One-time premium
Up to 1,000 sq m 0.1% of market value
Above 1,000 sq m up to 4,000 sq m 0.25% of market value
Above 4,000 sq m 0.5% of market value

For example, a 500 sq m plot with a ready reckoner value of ₹50 lakh pays 0.1%, or ₹5,000. Land already converted pays the same one-time premium in place of annual NA tax, using the 2001 rates if converted on or before 31 December 2001, or the conversion year’s rates for later conversions. The Government Resolution of 10 February 2026 asks for this within one year of its issue.

In Karnataka, the conversion fee and penalties come from Rules 107, 107A, 107AA and 108 of the Karnataka Land Revenue Rules, 1966 and depend on location and use. The demand notice shows the exact amount. Odisha’s fee is set under Section 8A and varies with the area. Ask the Tahasildar for the current schedule.

Timelines, deemed approval and status

In Karnataka, if the Deputy Commissioner makes no decision within 30 days of the application, it is treated as provisionally approved and a payment demand is issued automatically. Once you pay within 30 days, the conversion order is issued online.

To check land conversion status in Karnataka, use the conversion request status option on the state’s land conversion portal. You can search by affidavit ID, user ID or survey number. In Maharashtra, track the development permission on BPMS, then confirm the change on your 7/12 extract. In Odisha, track the application on the revenue services portal and make sure the kisam (land class) is updated in the record of rights afterwards.

Penalties for unconverted use

Karnataka’s new Rule 106F is strict. If an affidavit or document is false, or land is diverted without permission, the conversion can be cancelled, fees forfeited and the land forfeited to the government. A penalty of up to ₹1 lakh plus ₹2,500 a day for continued violation can be levied and entered on the RTC as an encumbrance. The DC can also prosecute under Sections 228 and 229 of the Bharatiya Nyaya Sanhita, 2023.

Other states have their own penalties under their revenue codes. Before buying converted land, check the order, the updated record of rights and the permitted use. Our property legal due diligence checklist lists the other papers to collect. For large or disputed parcels, a local property lawyer can confirm the position.

Frequently asked questions

Is NA permission still required in Maharashtra?

Not where the Development Plan or Regional Plan permits the use. Development permission from the planning authority and the one-time premium are enough. Land outside such plans, or Class-II land, still needs the Collector.

What is affidavit-based land conversion in Karnataka?

You file a notarised affidavit (Form 21B or 21C) on ₹200 stamp paper with your online application. For master plan land, the planning authority processes it without prior DC permission.

How long does land conversion take in Karnataka?

The DC seeks reports within 15 days and decides within 15 days of getting them. With no decision in 30 days, the application is deemed provisionally approved.

What is the NA conversion premium in Maharashtra?

It is 0.1%, 0.25% or 0.5% of the ready reckoner value, depending on whether the land is up to 1,000 sq m, up to 4,000 sq m, or larger. It is paid once, and the annual NA tax no longer applies.

Can I get a home loan on agricultural land?

Lenders generally ask for converted land with an approved building plan. Check your lender’s list before paying an advance.

Where do I apply for land conversion in Odisha?

Apply under Section 8A of the Odisha Land Reforms Act on the Odisha revenue services portal, or at the Tahasil office.

Sources

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