Conversion of Agricultural Land to Non-Agricultural Use (s. 95) — Land Law Notes

Conversion of Agricultural Land to Non-Agricultural Use (s. 95)

A farmer whose field lies on the edge of a growing town is sitting on a fortune — if he can build on it. But he cannot simply pour concrete on land the RTC calls “agricultural”. First he must get it converted to non-agricultural use, and the officer who signs that order is the Deputy Commissioner under section 95. Miss this step and you are not merely a defaulter — your building can be treated as an unauthorised use of agricultural land. The one thing the examiner insists on: name the right Act. This s. 95 conversion is the KLR Act, and is not the RFCTLARR “change of purpose of acquired land” from Unit 2.

What conversion under s. 95 is

Everyday picture: “conversion” (locally bhoo parivartane / “DC conversion”) is the official permission to stop using a plot for farming and start using it for houses, shops, a factory or a layout. Land is assessed by its use (Topic 4); changing the use needs the State’s sanction, both because the assessment changes and because planned development must be controlled. Section 95 provides that no agricultural land may be used for a non-agricultural purpose, and no non-agricultural land diverted to another non-agricultural purpose, without the prior permission of the Deputy Commissioner.

A. The procedure (s. 95)

Application to the Deputy Commissioner. The holder wishing to convert applies to the Deputy Commissioner for permission, specifying the intended non-agricultural use.
Enquiry and decision. The DC considers the application against planning, public-interest and revenue considerations. Permission is deemed granted if the DC does not respond within the prescribed period (a facilitative provision in the amended Act), but in practice a written conversion order is issued.
Permission on terms (s. 98). The DC may grant permission subject to conditions — set-backs, purpose, time-limit, payment of the conversion fine/altered assessment.
Altered assessment. On conversion, the land is re-assessed at the non-agricultural rate (Topic 4, s. 83), and a conversion fine is levied.

B. Consequences of unauthorised conversion (ss. 96–97)

Penalty (s. 96). Using agricultural land for a non-agricultural purpose without permission attracts a penalty/fine, and the holder can be required to restore the land or regularise the use.
Diversion of non-agricultural land (s. 97). Even land already held for one non-agricultural purpose cannot be diverted to another non-agricultural purpose without permission.
Summary action. Continued prohibited use can lead to action under the Act’s prohibition/eviction powers (s. 83, s. 104).

Quick orientation on the 6W:

Who — the holder applies; the Deputy Commissioner grants or refuses conversion.
What — statutory permission to change land from agricultural to non-agricultural use (or divert one N.A. use to another).
When — before the non-agricultural use begins; permission may lapse if the use does not start within the time fixed.
Where — the taluk/district revenue office; the DC of the district decides.
Why — because assessment follows use, and change of use must be controlled for planning and revenue.
How — application to the DC, enquiry, order on conditions (s. 98), altered assessment and conversion fine; unauthorised use is penalised (s. 96).

Section 95, KLR Act, 1964 (substance): “… no … land used for agriculture shall be used for any other purpose, and no land assessed for one non-agricultural purpose shall be used for any other non-agricultural purpose … except with the permission of the Deputy Commissioner … who may grant such permission subject to such conditions as may be prescribed.”

In Simple Terms: You cannot turn a farm into a building site on your own say-so. Section 95 makes the Deputy Commissioner’s prior permission the gate you must pass through, and lets him attach conditions. Build first and ask later, and you are using agricultural land unlawfully — with a fine and possible restoration to follow.

⚠️ DON’T CONFUSE — s. 95 conversion (KLR Act) vs RFCTLARR “change of purpose” (Unit 2)

s. 95, KLR Act (this unit) — a private holder asks the Deputy Commissioner for permission to change his own farm land to a non-agricultural use (build a house/factory/layout). It is about land you own.

RFCTLARR “change of purpose of acquired land” (Unit 2, ss. 101–102) — the Government changes the purpose of land it has already acquired from someone, or returns unutilised acquired land to the Land Bank. It is about acquired land and the acquiring authority.

Different Acts, different actors, different situations. If the question is a farmer wanting to build, it is s. 95 KLR Act — say so by name.

🧩 WORKED EXAMPLE — the farmer who built without conversion

Facts. H owns agricultural land at the town’s edge. Without applying to anyone, he builds a row of shops on it and starts letting them out. The Tahsildar issues a notice.

Rule. Section 95 requires the Deputy Commissioner’s prior permission to use agricultural land for a non-agricultural purpose; using it without permission attracts a penalty and restoration/regularisation (s. 96); permission, when granted, may be on conditions (s. 98) with altered assessment. Conversion permission under s. 95 is mandatory (State of Karnataka vs Shankara Textiles Mills).

Apply. H has used agricultural land for a commercial (non-agricultural) purpose without s. 95 permission — an unauthorised conversion. He is liable to a penalty under s. 96 and may be required to regularise (apply belatedly for conversion, pay the fine and altered assessment) or restore the land. His plea that “it is my land” fails: ownership does not include the right to change the use without sanction.

Conclusion. H must obtain (or regularise) s. 95 conversion and pay the penalty and altered assessment; building first did not make the change lawful.

flowchart TD
    ROOT["Conversion of Agricultural Land<br/>to Non-Agricultural Use (s.95 KLR Act)"]:::root
    ROOT --> APP["Holder applies to Deputy Commissioner<br/>stating intended N.A. use"]:::leaf
    APP --> DEC{"DC grants permission?"}:::decide
    DEC -->|"Yes"| Y["s.98 permission on conditions;<br/>altered (N.A.) assessment + conversion fine"]:::leaf
    DEC -->|"No / not obtained"| N["Unauthorised conversion:<br/>s.96 penalty + restore/regularise"]:::warn
    ROOT --> DIV["s.97 even N.A. land cannot be diverted<br/>to another N.A. purpose without permission"]:::leaf
    ROOT --> NB["NOT RFCTLARR change-of-purpose (Unit 2, ss.101-102)"]:::warn
    classDef root fill:#FFF8DC,stroke:#000,stroke-width:1px,color:#000;
    classDef leaf fill:#E6F3FF,stroke:#1E3A8A,color:#000;
    classDef decide fill:#FEF3C7,stroke:#92400E,color:#000;
    classDef warn fill:#FDECEA,stroke:#B22222,color:#000;
    linkStyle default stroke:#888,stroke-width:1px;

Case Laws

State of Karnataka vs Shankara Textiles Mills Ltd. (1995) — permission under s. 95 of the KLR Act is mandatory to convert land to non-agricultural use; without it the land does not become non-agricultural whatever the holder does on it.
M/s. Mysore Feeds Ltd. vs State of Karnataka (1988) — ss. 83 and 95(2) show that whether land is agricultural turns on its actual use; seeking conversion permission does not itself prove the land was agricultural, and use must be established before conversion consequences attach.

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