NALA Conversion of Land in Telangana

Introduction: NALA Conversion

In Telangana, the conversion of agricultural land for non-agricultural purposes is regulated by the Non-Agricultural Lands Assessment Act (NALA). This act plays a crucial role in facilitating urban development and managing land usage in the state. NALA Conversion has become an important topic due to factors such as rapid urbanization, and the need for residential and commercial infrastructure development. This article aims to provide an extensive overview of NALA Conversion in Telangana, exploring its significance, processes, recent developments, and challenges.

The Significance of NALA Conversion

1.1 Facilitating Urban Development

The process of NALA Conversion allows agricultural land to be transformed for non-agricultural purposes, such as residential, commercial, or industrial use. This conversion is essential for accommodating the increasing population and supporting the growth of urban areas in Telangana. By providing opportunities for infrastructure development and economic activities, NALA Conversion contributes to the overall progress of the state.

1.2 Managing Land Usage

NALA Conversion plays a vital role in managing land usage effectively. With the help of the NALA Act, the government regulates the conversion process and ensures that it aligns with the objectives of sustainable urban planning. By converting land based on the specific needs and demands of different sectors, Telangana can optimize its land resources and promote balanced development.

1.3 NALA Conversion Act

In 1963, the government introduced the Non-Agricultural Lands Assessment Act in Telangana to actively regulate the conversion of agricultural land to non-agricultural land. According to NALA, the act considers the cultivation of crops, gardens, orchards, or pastures as agricultural activities. Industrial purpose refers to the manufacturing of any product using external sources of energy, such as power, rather than relying on human or animal labor. Additionally, any trade, commerce, or business falls under the category of commercial purpose.

The Process of NALA Conversion

2.1 Application Procedure

To convert agricultural land for non-agricultural purposes, individuals or organizations need to follow a defined application procedure. The process involves obtaining prior permission from the competent authorities, as specified in the NALA Act. Applicants must submit their application through the Dharani portal, which serves as an integrated land records management system. They need to provide the required documents and make the prescribed fee payment for the conversion process. Once the procedure is successfully completed, the agricultural land is legally converted for non-agricultural use.

Step-by-step procedure to apply NALA on Dharani Portal

If you want to convert your agricultural land to non-agricultural land, you can easily apply for NALA online through the Dharani Telangana portal. Here are the simple steps to follow:

1. Visit the official website of Dharani Telangana at https://dharani.telangana.gov.in/.
2. On the left-hand side of the homepage, click on the ‘Apply for NALA’ or ‘Apply for NALA without Passbook’ options depending on your needs.
   • Fill in the required details: Personal details: Applicant, Father/Husband, Gender, Age, Occupation, Aadhaar No.
   • Property details: PPB No, District, Mandal, Village, Khata No, Survey No, Extent available, claimed.
3. After filling out the details, you will be redirected to the slot booking window. Enter your registered mobile number and captcha code.
4. Enter the OTP received on your mobile number and click on submit.
5. Make the required payment.
6. Book a slot for the application and follow the instructions to complete the NALA application process.
7. Once the application is approved, the competent authority or revenue inspector issues a formal demand notice.
8. The payment must be made within 30 days from the date of the demand notice. The landowner can choose to pay a one-time conversion tax using a challan.
9. Once the tax is paid, the landowner receives a copy of the challan, and the authorities issue a certificate within one month.
10. With the certificate in hand, the landowner can convert the agricultural land into non-agricultural land, suitable for industrial, commercial, or residential purposes.
11. The land revenue inspector examines the converted land to ensure compliance. If any fraudulent conversion is detected, a legal notice is sent to the owner.
12. The District Collector conducts quarterly reviews of the records to ensure that the landowners are utilizing the converted land according to its intended purpose.

2.2 Amendments to the NALA Act

In recent years, the Telangana State Legislative Assembly passed amendments to the NALA Act. These amendments removed the discretionary powers of revenue officials under Section 47(A) of the existing Act. The aim was to streamline the conversion process and eliminate irregularities and potential harassment faced by applicants. With these amendments, citizens can now apply for NALA Conversion without any hurdles, ensuring a more transparent and efficient process.

2.3 NALA Tax

When individuals/organizations in Telangana convert agricultural land into non-agricultural land, they have to pay NALA tax. This tax depends on two factors: the purpose of land use (commercial, industrial, or residential) and the population of the area. According to the AP Act No 3 of 2006, the NALA tax authorities calculate the NALA tax as five percent of the basic value of the land in GHMC areas, and they determine it as nine percent of the basic value of the land in other areas.

The population of the locality is an important criterion of the NALA Tax is collected.

Local Area Population	Rate of Assessment per Square meter (Sq.m)
	Industrial Purposes	Commercial Purposes	Residential purposes
Less than 10,000	50 p	Nil	Nil
10,000 to 50,000	50 p	50 p	5 p
50,000 to 2 Lakhs	75 p	75 p	15 p
2 lakhs and more	100 p	100 p	20 p

2.4 Lands that Don’t Require NALA Conversion

The Non-Agricultural Lands Assessment Act (NALA) does not apply to certain types of land. These include:

1. Lands belonging to charitable, religious, or educational institutions are exempt from NALA.
2. Lands in estates that are not under the government’s jurisdiction are not subject to NALA.
3. The NALA tax does not apply to residential lands that have an area of one hundred square meters or less and are solely used for residential purposes.
4. Lands owned by the Central or State Government, except for those leased out for non-agricultural purposes, are exempt from NALA.
5. Local authority-owned lands used for commercial purposes are also exempt from the NALA tax, provided that no income is generated from these lands.
6. Under NALA, it is not possible to convert land vested in a local authority for non-agricultural purposes.

2.5 Required Documents

To initiate land conversion in Telangana, the following documents need to be provided:

1. Application form for Land Conversion
2. Basic Value certificate from the Sub-Registrar
3. Pattadar Passbooks
4. Land title deed
5. Voter ID
6. Aadhaar Card

2.6 Consequences of Unauthorized Non-Agricultural Use of Land in Telangana

If a landowner in Telangana converts agricultural land for non-agricultural purposes without obtaining permission from the Revenue Officer, the authorities will consider the landowner to have converted the land without proper authorization. In such cases, the Revenue Officer will impose a penalty equal to 50% of the conversion fee on the landowner.

The landowner is responsible for paying the penalty. If you fail to pay the penalty by the specified due date, the authorities can initiate recovery proceedings against the land under the provisions of the Revenue Recovery Act.

Challenges and Recommendations

The revision of market rates, stamp duty, and nala conversion rates has been a point of concern for various stakeholders. Real estate developers and associations are urging the government to defer the revision of market values until they conduct a proper study on the impact of these revisions. The government should consider conducting comprehensive assessments and consultations with relevant stakeholders before implementing any revisions or changes to ensure the affordability and sustainability of land conversion processes.

Frequently Asked Questions:

Q. What is land conversion?

A. Land conversion refers to the process of converting agricultural land for residential or commercial purposes. This is necessary to ensure compliance with the NALA Act of 1963, which aims to safeguard agricultural land.

Q. Is land conversion necessary for residential use?

A. Yes, if someone intends to use agricultural land for residential purposes, they must undergo the land conversion process. This involves obtaining approval from the respective authorities and paying the NALA tax. Failure to comply may result in the government seizing the land permanently for non-agricultural use.

Q. How long does it take to complete the land conversion process in Hyderabad?

A. The land conversion process in Hyderabad typically takes around 30 days to two months. Revenue officials or district collectors review the land use every three months to ensure compliance with the conversion agreement.

Q. What happens if someone uses the land beyond the terms of the land conversion agreement?

A. If someone uses the land for purposes not specified in the land conversion agreement, revenue officials or district collectors will conduct regular checks every three months. If unauthorized use is found, the owner may be subject to a penalty of approximately 50% or more of the total conversion fee.

Q. What penalty is imposed for unauthorized land conversion?

A. If the owner of agricultural land in Hyderabad uses it for non-agricultural purposes without obtaining permission from the Revenue Officer, the Revenue Officer will impose a fine of approximately 50% of the land’s value on the owner.

Q. Can land conversion be processed through Dharani?

A.

The Dharani portal provides the application form for land conversion in Telangana state, but the process itself takes place at the MeeSeva center. However, individuals can obtain information about land conversion from the Dharani portal.