NALA CONVERSION IN ANDHRA PRADESH- MEANING AND ITS EXEMPTIONS

WHAT IS NALA CONVERSION ?

In Andhra Pradesh, the conversion of agricultural land for non-agricultural purposes is regulated
by The Andhra Pradesh Agricultural Land (Conversion for Non Agricultural Purposes) Act,
2006. This act plays a crucial role in facilitating urban development and managing land usage in
the state.
The Andhra Pradesh Agricultural Land (Conversion for Non Agricultural Purposes) Act, 2006
provides for a procedure to convert an agricultural land to a non agricultural land.
Under section 3 of the NALA Act it is mandated to pay conversion tax to the government for the
purpose of converting an agricultural land to a non agricultural land.

EXEMPTIONS-
The NALA Act for the state Andhra Pradesh came into force in the year 2006 and if a land is put
to non agricultural use before 2006 then the mandatory NALA Conversion will not be required.
It is well settled by the Hon’ble High Court of Andhra Pradesh that The Andhra Pradesh
Agricultural Land (Conversion for Non Agricultural Purposes) Act, 2006 is not retrospective in
nature and a land which was put to non agricultural use before 2006 would not attract NALA
conversion charges and therefore the permission under the Act is not required provided that such
conversion before 2006 is verified by the concerned authority. Also the authority concerned shall
insist on submission of permission under the NALA Act as a condition precedent for releasing
layouts.
● The Hon’ble High Court of Andhra Pradesh in B. Bhargava Lakshmi vs The State of
Andhra Pradesh1 upheld the above mentioned statement and observed that “It is only
from the date on which the Act came into force, that no piece of land which was
earmarked for agriculture, and is shown as such in the revenue records, can be put to
non-agricultural use. In case the land was already put to residential or other use, much
before the said Act came into force, a permission under it cannot be insisted. This,
however, is a matter, which needs to be verified by the concerned authority. If the
petitioners are able to prove that the land has been put to non-agricultural use much
before the Act came into force, they cannot be required to obtain the permission under
that Act.”
● The Hon’ble High Court of Andhra Pradesh in Sri K.Satyananda Patnaik and others vs
The Hyderabad Urban Development Authority and others2 observed that - “As we have
confirmed the common order dated 28.04.2010, we are inclined to dispose of writ
petitions as follows: a) It shall be competent for the Urban Development Authorities or
the Local Authorities, as the case may be, to insist on submission of clearance/permission
under the 2006 Act as a condition precedent for releasing of layouts, and b) the land has
1
Writ Petition No.8188 OF 2021.
2
W.A.Nos.702 OF 2010 and BATCH.
been put to non-agricultural use before the 2006 Act came into force, such
clearance/permission shall not be insisted.”