UP Sets 112-Day Deadline for Land Use Change, Cuts Conversion Fees
Uttar Pradesh has introduced a 112-day timeline for land-use conversion applications while reducing conversion charges and easing approval rules for smaller plots.
- Land-use conversion applications for plots up to 6,000 sq metres can now be cleared within 112 days.
- Conversion charges for several land-use categories have been reduced significantly.
- Instalment-based payments will attract lower interest, improving affordability for applicants.
The Uttar Pradesh government has introduced a fixed 112-day deadline for land-use conversion applications involving plots of up to 6,000 square metres. The changes were notified after the state cabinet approved amendments to the Uttar Pradesh Urban Planning and Development (Assessment, Levy and Collection of Land Use Conversion Charge) Rules on September 15.
The revised system is designed to make the land-use conversion process faster and more predictable. It also reduces conversion charges for several categories, which could lower the overall cost of changing land use for property owners and developers.
Under the new process, technical scrutiny of an application must be completed within 22 days of submission. Applicants will then have up to 60 days to respond to queries, provide documents and address issues identified during technical valuation.
After this stage, a six-member committee will have 30 days to examine objections and suggestions related to the proposed land-use change. The committee will be headed by the development authority’s vice chairperson and will include representatives from the district administration, municipal body, divisional commissionerate and the authority’s town planning department.
Once the required formalities are completed and the applicable charges are paid, the final approval must be issued within another 15 days.
Officials said the amendments are aimed at reducing procedural delays and making land-use conversion easier for applicants. The changes are also expected to improve the ease of doing business by providing clearer timelines and reducing financial costs.
The revised rules allow local development authority boards, including the Ghaziabad Development Authority, to approve land-use changes for plots of up to 6,000 square metres without seeking the state-level approval that was previously required.
The revised conversion charges could significantly reduce the financial burden on property owners and developers. For example, conversion from industrial to residential use will be charged at 15% of the applicable circle rate, while conversion to office use will cost 50% and commercial use 75%.
For agricultural land, the revised rates include 15% of the circle rate for industrial use, down from 20%; 25% for residential use, down from 50%; and 50% for institutional use, compared with the earlier 100%.
The government has also reduced the interest applicable when land-use conversion charges are paid in instalments. The rate has been changed from 12% annually to 1% per annum plus MCLR, potentially making instalment payments more manageable.
Property owners and developers seeking land-use conversion will need to follow the revised application and scrutiny process through the concerned local development authority. Authorities will now be expected to complete each stage within the prescribed timelines, while applicants must submit the required documents and respond to queries within the specified period.
The changes are expected to provide greater certainty around approval timelines and reduce both procedural and financial hurdles for eligible land-use conversion applications.
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