Change of Land Use – Regulatory Overview and Karnataka Guidelines

Change of land use is a legal process that allows for conversion of land from one designated use to another. The purpose of Change of Land use is to ensure that land development is in line with the local land use planning authority. Land designated as agricultural by the government requires conversion approval before it can be utilized for any other purpose, especially construction. In case any person wants to use an agricultural land for any other purposes except for farming, they require permission from authorities.

The reason behind land conversion is tax implication. Agricultural land is tax-exempt. Owners of agricultural lands do not have to pay taxes on the income generated from agricultural use of land. But in other cases, owners must pay taxes on income generated if they are using the land for the purposes such as commercial, residential or industrial. Guidelines dictated by land revenue department of respective states say that the ‘land use’ be legally changed if utilized for non-agricultural purposes. 

Land conversion procedure and fees adhering to it differs across India. All the states have set their own set of rules and regulations for conversion of land from agricultural to any other use. In some states Revenue departments are authorized to issue certificates of Change of Land use while in others, planning authority is authorized to issue the same.

Change in Land use involves a systematic procedure that includes obtaining approval for change in land use from its designated use to any other use.

Government of Karnataka, Urban Development Department has issued Guidelines dated 12.10.2012 for Change of Land Use which are as follows:

Section 14-A of KTCP Act provides for Change of Land use from approved Master Plan. Section 14-A clearly indicates the circumstances under which such change in land use can be granted and pre-requisites for such proposals are as below:

• Topographical or Cartographical or other errors or omissions;
•  Failure to fully indicate the details in the Master Plan;
• Changes arising out of the implementation of the Proposals in the Master Plan;
• Circumstances prevailing at any particular time, by the enforcement plan;

Further, the act says

• That all changes should be in public interest;
• The changes proposed do not contravene any of the provisions of this Act, or any other law governing planning, development or use of land within the local planning area;
• The proposals for all such changes are published in one or more daily newspaper, having circulation in the area, inviting objections from the public within a period of not less than fifteen days from the date of publication as may be specified by the Panning Authority.

Conclusion

Understanding the process of Change of Land Use is critical for landowners, developers, and investors seeking to repurpose agricultural land for residential, commercial, or industrial purposes. As demonstrated by Karnataka’s detailed framework under the KTCP Act, compliance with local planning laws and public interest considerations remains paramount. Stakeholders must stay updated with state-specific CLU procedures to ensure lawful development and avoid regulatory setbacks.