Importance of Land Conversion Certificate during land purchase

Purchasing a land without a land conversion certificate may have legal consequences.

The planning and development authority in a state allocates land for various uses – commercial, residential, agricultural, and industrial. If there is a plot of agricultural land and one wants to use it for purposes other than farming, one should follow the legal procedure for land conversion. Thus, obtaining a land conversion certificate (LCC) is a legal requirement. Purchasing land without the land conversion certificate can lead to legal consequences for buyers. A land conversion certificate in India is an important legal document. It is also required for fulfilling one’s tax liabilities.

Click to read all about land conversion in India

 

What is a Land Conversion Certificate?

A Land Conversion Certificate (LCC) or a conversion certificate is a legal document issued by a local government authority, which certifies the change in land use from one category (e.g. agricultural) to another (e.g. commercial, or residential). The certificate proves the owner’s right to use the piece of land for purposes other than its original intended use.

The land conversion certificate can be obtained from the revenue department of the state or the village panchayat office by paying a one-time fee.

 

Land Conversion Certificate: Charges

The procedure for applying for a Land Conversion Certificate (LCC) and land use charges may vary from state-to-state. The charges applicable for the conversion of residential land may vary from Rs 100 to Rs 500 in various states in India.

For example, Land Conversion Certificate fees in Delhi vary from Rs 14,328 to Rs 24,777 per square metre (sqm). In Bihar, the charges are 10% of the land value as the LCC fees.

Further, the land conversion charges also vary based on the intended use of converted land.

 

Land Conversion Charges for residential use

Type of land Conversion Certificate Fees
Land within 12 km of City Corporation limits Rs 327
Taluk limits Rs 218
Rural Rs 89

 

Land Conversion Charges for commercial use

Type of land Conversion Certificate Fees
Land within 12 km of City Corporation limits Rs 654
Taluk limits Rs 327
Rural Rs 218

 

How to apply for Land Conversion Certificate?

The process of obtaining a Land Conversion Certificate may vary across states. In some states, the procedure of land conversion is known by a different term, such as DC conversion (refers to title of Deputy Commissioner who grants the approval). Broadly, here are the steps involved in obtaining a land conversion certificate:

  • Approval from the authority: Apply for land conversion approval to the relevant authority (such as the Deputy Commissioner or Collector) along with the requisite documents, such as a land record certificate, land map, etc.
  • Verification of application: The application for conversion certificate will be reviewed by the site officer to check the property information through the Tehsildar’s office. Further, the officials will inspect the site to ascertain whether it is vacant, or under dispute, or to check features, such as the presence of existing structures, etc.
  • Check for objections: A sub-divisional officer or collector will inspect the master plan of the property with the planning and development authority. The official will check if there are any land-related objections, such as the height or overall expense of the property exceeds the given limit. The objections, if any, will be filed in writing to the relevant authority.
  • Grant of final approval: The application for CLU (Change of Land Use) will be accepted if everything is according to plan. The applicant should comply with the prohibition against using the land for any other purpose and ensure that the CLU charges against them have been dropped. Further, one should give the Tehsildar notice of CLU within 30 days for the necessary adjustments to be made to the property record.

It is important to note that the application for conversion certificate may be rejected in case the property is under dispute or there is any existing structure or high-intensity power lines.

 

Land Conversion Certificate: Documents required

  • Applicant’s identity proof
  • Proof of occupancy
  • Record of rights, tenancy, and crops
  • Copy of title deed
  • Copy of partition deed (in case of inheritance)
  • Copy of sale deed
  • Copy of mutation certificate
  • Copy of land record
  • Copy of survey map
  • Land revenue payment receipts
  • Past receipt of bill payments

 

Who approves land conversions in India?

State Authority
Delhi Delhi Development Authority (DDA)
Bihar Sub-divisional officer
Uttar Pradesh Sub-divisional Magistrate
Gujarat Collector/Panchayat
Maharashtra District collector
Odisha Tehsildar/sub-collector
Karnataka Commissioner Land Revenue Department
Rajasthan Tehsildar/sub-divisional officer
Tamil Nadu Directorate of Town and Country Planning
Andhra Pradesh Tehsildar/revenue divisional officer

Source: National Government Services Portal

 

Should you buy land without a Land Conversion Certificate?

Obtaining a Land Conversion Certificate is a legal obligation for the change of land use, thus ensuring compliance with the zoning regulations of a state. The conversion certificate proves the owner’s plans to use the land for non-agricultural activities or any purpose other than its original intended use.

Purchasing a land without a land conversion certificate may have legal consequences. Moreover, one may not be able to get the required approvals, permits and utilities for any development projects and investments undertaken on the land without the conversion certificate. Therefore, one should avoid buying land without a Land Conversion Certificate in India.

 

Housing.com News Viewpoint

If you are planning to purchase agricultural land and use it for non-agricultural purposes, make sure to check the process of applying for a Land Conversion Certificate in the state. Some states have the facility to apply for a Land Conversion Certificate online. One can visit the official portal of the authority to download the conversion certificate. The land conversion charges also differ based on the state, where the land is located and the local authority.

 

FAQs

What is a Land Conversion Certificate?

A Land Conversion Certificate is a legal document that validates the conversion of land.

Why is land conversion necessary?

Through the land conversion process, agricultural land can be converted for non-agricultural purposes, such as constructing a house.

What is the importance of a Land Conversion Certificate?

A Land Conversion Certificate is necessary when using properties originally intended for agricultural use but are now used for commercial, residential, or industrial purposes.

How do I get a Land Conversion Certificate?

One must apply for a conversion certificate to the relevant authority (such as the Deputy Commissioner or Collector) along with the requisite documents. Moreover, one can also visit the land records authority in the state to apply for the Land Conversion Certificate online.

What is the fee for obtaining a Land Conversion Certificate?

The Land Conversion Certificate fees vary from state-to-state and depend on the type of land conversion.

Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com
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