The Andhra Pradesh Agricultural Land (Conversion for Non Agricultural Purposes) Act, 2006

The Andhra Pradesh Agricultural Land (Conversion for Non Agricultural Purposes) Act, 2006 (Act No. 3 of 2006)

1. (1) This Act may be called the

Andhra Pradesh Agricultural Land (Conversion for Non Agricultural Purposes) Act, 2006.

1. (2) It extends to the whole of the State of Andhra Pradesh.
2. (3) It shall come into force on such date as the Government may, by

Definitions - In this Act unless the context otherwise requires,-

1. (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;
2. (b) 'Agriculture lands' means lands used for agriculture;
3. (c) 'Conversion' means change of land use from agricultural to non- agricultural purposes;
4. (d) 'Non-agricultural land' means land other than Agricultural land;
5. (e) 'Government' means the State Government of Andhra Pradesh;
6. (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;
7. (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;
8. (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;
9. (j) 'Prescribed' means prescribed by Rules made by the Government under this Act;
10. (k) 'Notification' means a notification published in the Andhra Pradesh Gazette; and the word 'Notified' shall be construed accordingly;
11. (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;
12. (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.

(1) No agricultural land in the State shall be put to non-agricultural purpose, without the prior 1[payment of Conversion Tax to Government]. 2[(2) An intimation of payment of Conversion Tax along with a copy of the challan/receipt shall be sent to the Competent authority. Such intimation shall be sufficient proof for payment of Conversion Tax and no separate order shall be required to be passed by Competent authority in the matter except where proceedings are initiated for deficit payment of Conversion Tax.] (3) If the conversion 3[tax] so paid as per 4[sub-sections (1) and (2)] is found to be less than the 3[tax] 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. .The words ‘payment of Conversion Tax to Government” substituted for the words “permission of the competent authority” by Act No. 13 of 2018, Sec.2. . sub-section (2) substituted by Act No. 13 of 2018, Sec.2. .The word “tax” substituted for the word “fee/fees” wherever it occurs, by Act No. 16 of 2012, Sec.4. . The expression “sub-sections (1) and (2)” substituted by the Act No. 13 of 2018, Section 2. (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 3[tax], it shall be deemed that the amount paid is sufficient for the purpose. (6) [omitted] 2[(7) On the request, the lands put into use for establishment of Solar Power plants by the Andhra Pradesh Green Energy Corporation Ltd. (APGECL), shall be reconverted into Agriculture Lands after closure of projects, by collecting 1% Reconversion fee on basic value by the competent authority.]

1[payment of Conversion Tax to Government].

2[(2) An intimation of payment of Conversion Tax along with a copy of the challan/receipt shall be sent to the Competent authority. Such intimation shall be sufficient proof for payment of Conversion Tax and no separate order shall be required to be passed by Competent authority in the matter except where proceedings are initiated for deficit payment of Conversion Tax.]

1. (3) If the conversion 3[tax] so paid as per 4[sub-sections (1) and (2)] is found to be less than the 3[tax] 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. .The words ‘payment of Conversion Tax to Government” substituted for the words “permission of the competent authority” by Act No. 13 of 2018, Sec.2. . sub-section (2) substituted by Act No. 13 of 2018, Sec.2. .The word “tax” substituted for the word “fee/fees” wherever it occurs, by Act No. 16 of 2012, Sec.4. . The expression “sub-sections (1) and (2)” substituted by the Act No. 13 of 2018, Section 2.
2. (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.
3. (5) In case no intimation is received by the applicant within 30 days about the deficit payment of conversion 3[tax], it shall be deemed that the amount paid is sufficient for the purpose.
4. (6) [omitted] 2[(7) On the request, the lands put into use for establishment of Solar Power plants by the Andhra Pradesh Green Energy Corporation Ltd. (APGECL), shall be reconverted into Agriculture Lands after closure of projects, by collecting 1% Reconversion fee on basic value by the competent authority.]

3[tax]- (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

3[tax] for non-agricultural purposes, at the rate of

4[3%] of the basic value of the land in areas as may be notified by the Government from time to time.

5[Provided that the owner or occupier of agriculture land in the areas covered under

6[omitted], Greater Visakhapatnam Municipal Corporation and Vijayawada Municipal Corporation, shall have to pay a conversion tax for non- agricultural purposes, at the rate of

7[2%] of the basic value of the land].

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

The Revenue Divisional Officer or any officer to be notified by the Government in this behalf shall be competent to

8[issue notice under sub-

section (3) of section 3 and impose fine under sub-section (2) of section 6].

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

purpose without

9[Payment of Conversion Tax] as required under section 3, the the land shall be deemed to have been converted into non-agricultural purpose.

1. (2) Upon such deemed conversion, the competent authority shall impose a fine of 50% over and above the conversion tax for the said land specified under section 4 in such manner as may be prescribed.
2. (3) The owner or occupier of the land shall pay the fine so imposed under Sub- Sub-Sections (1) and (2) in such manner as may be prescribed. . In Section 3 sub-section (6) along with the proviso is omitted by Act No. 13 of 2018, Sec.2. . sub-section (7) added by the Act No. 32 of 2020, Section 2. .The word “tax” substituted for the word “fee/fees” wherever it occurs, by Act No. 16 of 2012, Sec.4. . The expression “3%” substituted in place of expression “9% ” by Act No. 13 of 2018, Sec.3. . The proviso added by Act No. 16 of 2012, Sec.2. .The words “Greater Hyderabad Municipal Corporation” is omitted by Act No. Act No. 13 of 2018, Sec.3. .The expression “2% ” substituted for the expression “5%” by Act No. 13 of 2018, Sec.3. .The words substituted by Act No. 13 of 2018, Sec.4. .The words “Payment of Conversion Tax” substituted for the words “obtaining the permission” by Act No. 13 of 2018, Sec.5.
3. (4) Any 5[tax] 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.

1. (a) Lands owned by the State Government;
2. (b) Lands owned by a local authority and used for any communal purposes so long as the land is not used for commercial purposes;
3. (c) Lands used for religious or charitable purposes;
4. (d) Lands used by owner for household industries involving traditional occupation, not exceeding one acre;
5. (e) Lands used for such other purposes as may be notified by the Government from time to time; 2[(f) Lands used for Aquaculture, Dairy and Poultry.] 3[(g) Lands allotted to the Andhra Pradesh Industrial Infrastructure Corporation (APIIC).] 4[(h) Lands allotted to Andhra Pradesh Green Energy Corporation Ltd. (APGECL)]

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.

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.

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.

Court shall entertain any suit, or other proceeding to set-aside or modify, or question the validity of deficit

5[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 there under, or in respect of any other matter falling within its scope.

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. .The expression “Sub-Sections (1) and (2)” substituted for the expression “sub-section(2)”, by Act No. 13 of 2018, Sec.2, for sub-section (3). . The item (f) added by Act No. 16 of 2012, Sec.3 (Deemed to have come into force with effect on and from the 02.01.2006). .The item (g) added by Act No. 13 of 2018, Sec.6. .The item (h) added by Act No. 32 of 2020, Section 3. .The word “tax” shall be substituted for the word “fee/fees” wherever it occurs, by Act No. 16 of 2012, Sec.4.

.The expression “Sub-Sections (1) and (2)” substituted for the expression “sub-section(2)”, by

Act No. 13 of 2018, Sec.2, for sub-section (3). . The item (f) added by Act No. 16 of 2012, Sec.3 (Deemed to have come into force with effect on and from the 02.01.2006). .The item (g) added by Act No. 13 of 2018, Sec.6. .The item (h) added by Act No. 32 of 2020, Section 3. .The word “tax” shall be substituted for the word “fee/fees” wherever it occurs, by Act No. 16 of 2012, Sec.4.

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.

for carrying out all or any of the purposes of this Act.

1. (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.

Lands Assessment Act, 1963 is hereby repealed.

1. (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.