Act Description : ANDHRA PRADESH AGRICULTURAL LAND(CONVERSION FOR

NON-AGRICULTURAL PURPOSES)ACT, 2006

Act Details :

ANDHRA
PRADESH
LAND(CONVERSION
FOR
PURPOSES)ACT, 2006

AGRICULTURAL
NON-AGRICULTURAL

3 of 2006

2nd January, 2006

An Act to Regulate the Conversion of Agricultural Land to NonAgricultural Purposes and for matters connected therewith or incidental
there to and to repeal the Andhra Pradesh Non-Agricultural Lands
Assessment Act, 1963. Be it enacted by the Legislative Assembly of the
State of Andhra Pradesh in the Fifty-sixth year of the Republic of India
as follows:

Section 1 Short title, extent and commencement

(1) This Act may be called the Andhra Pradesh Agricultural Land
(Conversion for Non-Agricultural Purposes) Act, 2006.

(2) It extends to the whole of the State of Andhra Pradesh.

(3) It shall come into force on such date, as the Government may, by
Notification, appoint 87654321

Section 2 Definitions

In this Act unless the context otherwise requires,

(a) Agriculture means

(i) the raising of any crop or garden produce ; or

(ii) the raising of orchards; or
(iii)the raising of pasture; or
(iv) Hay-ricks ;

(b) 'Agriculture lands' means lands used for agriculture ;

(c) 'Conversion' means change of land use from agricultural to nonagricultural purposes ;

(d) 'Non-agricultural land' means land other than Agricultural land ;

(e) 'Government' means the State Government of Andhra Pradesh ;

(f) '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 ;

(g) '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 ;

(h) '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 a MRO empowered by
the Government to exercise the powers and perform the functions of
the Mandal Revenue Officer under this Act ;

(i) 'Mandal Revenue Inspector' means the Mandal Revenue Inspector in

whose jurisdiction the agricultural land or a part thereof is situated and
includes any officer empowered by the Revenue Divisional Officer to
exercise the powers and perform the functions of a Mandal Revenue
Inspector under this Act ;

(j) 'Prescribed' means prescribed by Rules made by the Government

under this Act ;

(k) 'Notification' means a notification published in the Andhra Pradesh

Gazette ; and the word 'Notified' shall be construed accordingly ;

(l) '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;

(m) 'Owner' includes any person for the time being receiving or entitled
to receive, whether on his own 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;

(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 there from.

Section 3 Land use Conversion

(1) No agricultural land in the State shall be put to non-agricultural

purposes, without the prior permission of the Competent authority.

(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 specified under

Section 4.

(3) If the conversion fee so paid as per sub-section (2) is found to be

less than the fee prescribed under Section 4, a notice shall be issued by
the competent authority to the applicant within 30 days of the receipt
of application intimating him the deficit amount.

(4) The applicant shall pay the deficit amount indicated in the notice
issued under sub-section (3) within fifteen days of the receipt of such
notice.

(5) In case no intimation is received by the applicant within 30 days

about the deficit payment of conversion fees, it shall be deemed that
the amount paid is sufficient for the purpose.

(6) The conversion permission requested for shall either be issued,

rejected in full or part by the competent authority within sixty days
after such request is received in the office of the competent authority
or within thirty 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 in sub-section (6), the required permission shall be deemed
to have been given.

Section 4 Power to levy and collect conversion fee

(1) 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 fee for non-agricultural purposes, at the rate of 10% of the
basic value of the land in areas as may be notified by the Government
from time to time.

(2)'For the purpose of this section, the basic value of the land shall be
fixed in such manner as may be prescribed.

Section 5 Authority competent to convert agricultural land

for non-agricultural purpose

The Revenue Divisional Officer or any officer to be notified 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 agricultural purpose to non-agricultural purpose.

Section 6 Penalty

(1) If any agricultural land has been put to non-agricultural purpose

without obtaining the permission as required under Section 3, the land
shall be deemed to have been converted into non-agricultural purpose.

(2) Upon such deemed conversion, the competent authority shall

impose a fine of 50% over and above the conversion fee for the said
land specified under Section 4 in such manner as may be prescribed.

(3) The owner or occupier of the land shall pay the fine so imposed
under Sub-Section (2) in such manner as may be prescribed.

(4) Any fee or penalty which remains unpaid after the date specified
under sub-section (2) for payment, shall be recoverable as per the
provisions of the Andhra Pradesh Revenue Recovery Act, 1864.

Section 7 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 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 ;

Section 8 Appeal

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.

Section 9 Act to Override other Laws

The provisions of this Act shall have effect notwithstanding anything in

consistent therewith contained in any other law for the time being in
force, or any custom or usage having the force of law or contract or
judgment decree or order of a court or any other authority.

Section 10 Power to give directions

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 persons subordinate to the
Government.

Section 11 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 fee 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.

Section 12 Protection of action taken in good faith

No suit, prosecution or other legal proceedings shall be instituted

against any person for anything which is in good faith done or intended
to be done under this Act or under the rules made thereunder.

Section 13 Power to remove difficulties

If any difficulty arises in giving effect to the provisions of this Act, the
Government may by order in the Andhra Pradesh Gazette make such
provisions not inconsistent with the purposes or provisions of this Act
as appear to them to be necessary or expedient for removing the
difficulty.

Section 14 Power to make rules

(1) The Government may by notification make rules for carrying out all
or any of the purposes of this Act.

(2) Every Rule 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 immediately following
the Legislative Assembly agrees in making any modification in the rule
or in the annulment of the rule, the rule shall from the date on which

the modification or annulment is notified have effect only in such

modified form or shall stand annulled as the case may be, so however,
that any such modification or annulment shall be without prejudice to
the validity of any thing previously done under that rule.

Section 15 Repeal of Act 14 of 1963

(1) The Andhra Pradesh Non- Agricultural Lands Assessment Act, 1963
is hereby repealed.

(2) Upon such repeal,

(a) the provisions of Section 8 of the Andhra Pradesh General Clauses

Act, 1891 shall apply ;
(b) all the outstanding arrears from individuals/institutions under the
Andhra Pradesh Non-Agricultural Lands Assessment Act, 1963 as on the
date of commencement of this Act shall be recovered under the
provisions of the Andhra Pradesh Revenue Recovery Act, 1864.

ANDHRA PRADESH AGRICULTURAL LAND (CONVERSION FOR NONAGRICULTURAL PURPOSES) RULES, 2006
1 RS. to Part-I (Ext) AP.Gaz. dt 27-10-2006. In exercise of the powers
conferred by sub-section (1) of Section 14 of the Andhra Pradesh
Agricultural Land (Conversion for Son-Agricultural Purposes) Act, 2006
A.P.Act No. 3 of 2006), the Government of Andhra Pradesh hereby
makes the following rules, namely:-

Rule 1 Short title

These rules may be called the Andhra Pradesh Agricultural Land

(Conversion for Non-Agricultural Purposes) Rules, 2006.

Rule 2 Definition

In these rules unless the context otherwise requires:-

(a)'Act' means the Andhra Pradesh Agricultural Land (Conversion for

Non-Agricultural Purposes) Act, 2006;

(b)'form' means the form appended to these rules;

(c)'Basic Value' means the land value entered in the Basic Value
Register notified by Government from time to time and maintained by
the Sub-Registrar.

Rule 3 Procedure for Application for Conversion

(i) The application for conversion of the Agriculture land for NonAgriculture purposes shall be made in the form at Annexure-'A'.

(ii) Nonces for payment of deficit conversion fee shall be in the form at

Annexure-'B'.

(iii) The permission for acceptance of application shall be in form at

Annexure-'C'.

Rule 4 Procedure to Be followed by the Competent

Authority

The Competent Authority i.e. Revenue Divisional Officer who receive

the applications for conversion of Agricultural Land for Non-Agricultural
purposes:(a) may cause such enquiry as may be necessary to determine whether
the conversion applied for is objectionable or not;

(b) may invite objections in this regard, if necessary;

(c) may inspect or cause inspection of the land in order to determine

whether or not the proposed conversion is objectionable;

(d) shall take cognizance of the Master Plan and such other land use
restrictions in determining whether the proposed conversion is
objectionable or not;

(e) shall thereafter proceed to pass orders, ordering or rejecting the

proposed conversion.

Rule
5
Powers
of
Collector/Revenue
Officer/Mandal Revenue Officer

Divisional

(i) The Competent authority or any other officer authorized by him,

shall have power to enter upon, inspect, measure the land and do such
other act or acts as are necessary for the determination of the area
applied for conversion and fixation of conversion fee under the Act.

(ii) The Mandal Revenue Officer is empowered to such act or acts as

entrusted by the Collector/ Competent Authority under the Act.

(iii) The Collector shall have appellate powers against the orders
passed by the Competent Authority.

(iv) The Collector may suo motu or an application can call for the
record, scrutinize to satisfy himself before or after the orders passed
and to modify or anull any order or proceeding passed by the
Competent Authority after giving notices and hearing the affected
party.

Rule 6 Mode of payment for Conversion Fee

(i) For the purpose of calculation of conversion fee the basic value as
notified by Government from time to time, for the land as on the date
of application shall be taken into account.

(ii) The applicant shall pay the conversion fee prescribed under Section
4 of the Act by way of Challan payable into the Government treasury as

specified by the Government from time to time to the relevant head of

account,

(iii) Any person desires to ascertain the basic value, such person shall
apply to the Competent Authority for furnishing of such basic value for
such Survey No. Area etc., and the competent authority shall furnish
such information within (15) days from the date of receipt of
application.

(iv) In case of deemed conversion, the date for the purpose of

calculation of basic value shall be the date earliest of the following
dates:

(1)Date of detection of conversion by Competent Authority.

(2)Date of entry in to Village accounts by Village Officer/Panchayat
Secretaries.
(3)Date of application by Owner/ Occupiers.

Rule 7 Order of Permission

The competent authority shall issue

conversion in the form at Annexure-'C'.

necessary

permission

for

Rule 8 Penalty

(i) In case it has come to the notice of the competent authority that
any Agricultural Land has been converted to Non-Agriculture purpose

without obtaining any prior permission by any owner or occupant of

such agricultural land, the same shall be deemed to have been
converted into Non-Agriculture purpose and action shall be taken to
levy such lands with such penalty as prescribed under Section 6 of the
Act;

(ii) The Competent Authority shall issue notices the owner/occupier of

Agriculture Land deemed to have been converted to Non-Agriculture
use Under Section 6(1) calling upon him to pay 50% penalty over and
above the Conversion fee in the form at Annexure-'D' giving him time
of (30) days to remit into Government account through a challan as
specified at sub-rule (ii) of Rule 6. Provided that a show cause notice
shall be issued by the competent authority to the said owner or
occupant of such agricultural land calling for explanation within fifteen
(15) days as to why the penalty as provided under Section 6(2) shall
not be imposed for conversion of Agricultural Land into Non-Agricultural
purposes without obtaining prior permission. On receipt of such
explanation, the competent authority has to decide the actual extent of
land converted into Non-Agricultural purpose and issue proceedings in
the form Annexure-E informing the total amount including the penalty
and the land conversion fee payable within fifteen (15) days from the
date of receipt of such demand notice. If, any fee and penalty remains
un-paid, within the time specified by the competent authority such fee
and penalty is liable to be recovered under the provisions of the
Revenue Recovery Act, 1864.

Rule 9 Appeal

(i) Every Appeal lies to the Collector against the orders of the
Competent Authority within (60) days from the date of receipt of the
orders. The appeal shall be accompanied by an authentic copy of the
order appealed against and such appeal shall be duly stamped with a
court fee lable of Rs. 3/- and any other fee as may be notified by the
Government.

(ii) Collector shall observe the principles of natural justice in disposing

off any appeal.

ANNEXURE A

ANNEXUREANNEXURE-A

[See Rule 3(i)]

To

The Competent Authority and

Revenue Divisional Officer,

Division, District.

Sir,

Sub:- Land Conversion Act-............Village, Mandal, District-Sy.No.

Ext.- Conversion of Agricultural land to Non-Agricultural PurposeRequest-Regarding.

I............S/o................R/o.......................Submit that I am the

Pattadar
of
Agricultural
lands
in
Survey.No.
of
Village...................Mandal......................District to an extent of Acs.
Gts./Cts. 1 would like to convert Agricultural land specified in the
Schedule into Non-Agricultural purpose. I request the Competent
Authority to accord necessary permission for the conversion of the said
agricultural lands to Non-Agriculture purpose in terms of Section 4 of
the Andhra Pradesh Agricultural Land (Conversion for Non-Agricultural
purposes) Act, 2006 (A.P.Act No. 3 of 2006). I enclose herewith a copy
of challan bearing No.............dated:.............for Rs................
(Rs..............only) paid to the Government Treasury of.............
(V)/Town/

City @ 10% basic value of the land towards conversion fee.

I hereby declare that the lands mentioned above are neither covered
by any litigation/ court cases/encroachment nor these lands are
assigned lands/ULC Surplus land/ Agricultural Ceiling Surplus
Land/Tank bed lands.

Your's faithfully,

Address.

( .)

SCHEDULE

SI No.
Village, Mandal & District
Sy No
Trotal extent

(Sy No wise)
Extent for which permission for Conversion Sought
Remarks

(1)
(2)
(3)

(4)
(5)
6

ANNEXURE B

ANNEXUREANNEXURE-B

[See Rule 3(ii)]

Office of the Competent Authority & R.D.O.:District.

NOTICE

File No.

Dated:

Sub:-

Ref:- Your application dated:

Sri..............S/o................R/o..........is hereby informed that as per

your application-referred above, you have applied for conversion of
Acs...... Gts./Cts............You have paid conversion fees along with your
application. Rs...... But, the basic value of the land as on the date of
application for conversion applied for is Rs..........The total conversion
fee works out to Rs............. Hence, there is a deficit conversion fee
amounting to Rs.... Therefore, you are directed to remit the deficit
amount of Rs. (Rs. only) towards conversion fee to Non-Agricultural
purpose within fifteen (15) days form the date of receipt of this notice.
If you fail to remit this deficit amount, your application shall not be
processed further and will returned to you after thirty (30) days.

Competent
Authority
Sri...........S/o.............R/o.

&

R.D.O..............:

Divn,

Copy to the Mandal Revenue Officer, (M)............Divn...............Dist.

ANNEXURE C

ANNEXUREANNEXURE-C

To

[See Rule 7]

PROCEEDINGS OF THE COMPETENT

DIVISION......................DISTRICT

AUTHORITY

AND

R.D.O.

PRESENT:

Proedgs.No.

Dated:

Sub:

Ref:

ORDER:

Sri...............S/ o..................R/ o..............has applied for conversion

of agriculture land

situated in Sy.No........extent of......(v).........Mandal,..........District for

the purpose of Non-Agriculture. The request of the applicant is found to
be consistent with the provisions of the Act.

Hence, the permission is hereby accorded for conversion of the

Agricultural Land into Non-Agricultural purpose on the following terms
and conditions:

1. The permission is issued on the request of the applicant and he is

solely responsible for the contents made in the application;

2. The grant of permission can not be construed that the contents of

the application are ratified or confirmed by the authorities under the
Act.

3. The permission confirms that the conversion fee has been paid under
the Act in respect of above Agricultural lands for the limited purpose of
conversion into Non-Agricultural purpose.

4. It does not confer any right, title or ownership to the applicant over
the above Agricultural Lands.

5. This permission does not preclude 'or restrict any authority or

authorities or any person or persons or any individual or individuals or
others, collectively or severally, for initiating any action or proceedings
under any law for the time being in force.

6. The conversion fee paid will not be returned or adjusted otherwise

under any circumstances;

7. The authorities are not responsible for any incidental or

consequential actions or any loss occurred to any body or caused
otherwise due to or arising out of such ermission granted on any false
declaration, claim or deposition made by the applicant.

8. The authorities reserves the right to cancel the permission if it is

found that the permission is obtained by fraud, misrepresentation or by
mistake of fact.

REVENUE DIVISIONAL OFFICER

To .

Sri

SCHEDULE

SI. No.
Village

Mandal &

District
Sy.No.
Total extent

(Sy.No. wise)
Extent for which

Permission granted.
Remarks

(1)
(2)
(3)
(4)
(5)
(6)

ANNEXURE D

ANNEXUREANNEXURE-D

NOTICE

[See Rule 8]

GOVERNMENT OF ANDHRA PRADESH (REVENUE DEPARTMENT)

Ref.No.

Dated:

Office of the Competent Authority & RDO.

Sub: Irregular Land Conversion from Agriculture to Non-Agriculture

purpose - Levy of Penalty - Show Cause Notice-Issued.

It
is
noticed
that
the
Sy.No.............Exten.............situated

agricultural
land
in
in.................(V)..............

(M)...........

District has been put to Non-Agricultural purpose without obtaining any

permission as required Under Section 3 of the Andhra Pradesh
Agricultural Land (Conversion for Non-Agricultural Purposes) Act, 2006.

As per Section 6(1) of the said Act, it shall be deemed that the above
said lands have been converted into Non-Agriculture purpose and it is
liable to be imposed a fine of 50% in addition to the regular conversion
fee.

The basic value of this land on the date of detection of conversion of

land to Non-Agriculture use is Rs..........per acre. The conversion fee for
Acs.........Gts./Cts........is Rs.........The 50% penalty works out of
Rs..................Therefore, Sri.........S/o......

Owner/Occupant is requested to show cause why the penalty along

with the conversion fee as stated in Para (2) above should not be
imposed within fifteen (15) days of receipt of the notice failing which, it
is deemed that he has no explanation to offer and the penalty and
conversion fee will be levied as per the provisions of the said Act and
the rules made there under.

C.A.&R.D.O.

To

Sri

ANNEXURE E

ANNEXUREANNEXURE-E

[See Rule 8]

PROCEEDINGS OF THE COMPETENT AUTHORITY AND R.D.O.

Division:

District:

Present:

Procdgs.No.

Dated:

Sub:

Ref:

ORDER

It is noticed that the Agricultural land in Sy. No...........Extent: situated

in....(V)......(M)..........District has been converted to Non-Agricultural
purpose without obtaining any permission as required Under Section 3
of the Andhra Pradesh Agricultural Land (Conversion for NonAgricultural purposes) Act 2006 (A.P.Act No. 3 of 2006).

A
Show
Cause
Notice
has
been
issued
to
Sri............S/o.........Owner/Occupant in the reference cited calling to
show cause within fifteen (15) days from the date of receipt of the
notice, why a penalty along with conversion fee should not be imposed
upon for conversion of the above said agriculture land without
obtaining permission under the said Act.

(If explanation submitted) Sri...............S/o..............has submitted

explanation as called for and it has been considered and found to be
valid/not valid for the reasons (to be specified in each and every case).

(If explanation not submitted) Sri..............S/o.............has not

submitted explanation as called for, and it is deemed that he has no

explanation to offer and as such the matter has been decided on

material available. The basic value of the land ascertained from the
Sub-Registrar.................(V)................(M) District is Rs...............per
acre.
The
extent
converted
to
non
agriculture
purpose
is................Acs...........Gts./Cts. The total conversion fee computed is
Rs.............In the circumstances explained above, Penalty is imposed
@ 50% on Coversion fee stipulated under Section (1) of the Act for
converting the agricultural lands in Sy.No........

Ext.......Situated
in...........(V).........(M).........District
to
NonAgricultural purpose. Sri...........S/o..........R/o............. is hereby
directed to pay Rs. i.e. Rs....... to wards conversion fee and
Rs.........towards 50% of Penalty on Conversion fee. The total

amount should be paid within fifteen (15) days in the concerned

Government Treasury and produce the copy of challan to the under
signed for regularization, failing which, the amount will be collected
under the provisions of Revenue Recovery Act, 1864.
Act Type : Andhra Pradesh State Acts