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)
ARRANGEMENT OF SECTIONS
SECTIONS
1. Short title, extent and commencement.
2. Definitions.
3. Land use Conversion.
4. Power to levy and collect conversion1[tax].
5. Authority competent to convert agricultural land for non-agricultural
purpose.
6. Penalty.
7. Act not to apply to certain lands.
8. Appeal.
9. Act to Override other Laws.
10. Power to give directions.
11. Bar of Jurisdiction.
12. Protection of action taken in good faith.
13. Power to remove difficulties.
14. Power to make rules.
15. Repeal of Act 14 of 1963.
1 . The word “tax” substituted for the word “fee/fees” wherever it occurs, by Act No. 16 of 2012,
Sec.4.
THE ANDHRA PRADESH AGRICULTURAL LAND (CONVERSION FOR NON
AGRICULTURAL PURPOSES) ACT, 2006
Act No. 3 of 2006
[2nd January, 2006]
AN ACT TO REGULATE THE CONVERSION OF AGRICULTURAL LAND TO
NON-AGRICULTURAL PURPOSES AND FOR MATTERS CONNECTED
THEREWITH OR INCIDENTAL THERE TO AND TO REPEAL THE
ANDHRA PRADESH NON-AGRICULTURAL LANDS ASSESSMENT ACT,
1963.
Be it enacted by the Legislative Assembly of the State of Andhra Pradesh in the
Fifty-sixth year of the Republic of India as follows:-
1. Short title, extent and commencement - (1) This Act may be called the
Andhra Pradesh Agricultural Land (Conversion for Non Agricultural Purposes)
Act, 2006.
(2) It extends to the whole of the State of Andhra Pradesh.
(3) It shall come into force on such date as the Government may, by
Notification, appoint.
2. Definitions - In this Act unless the context otherwise requires,-
(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;
(b) 'Agriculture lands' means lands used for agriculture;
(c) 'Conversion' means change of land use from agricultural to non-
agricultural purposes;
(d) 'Non-agricultural land' means land other than Agricultural
land;
(e) 'Government' means the State Government of Andhra Pradesh;
(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;
(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;
(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;
(j) 'Prescribed' means prescribed by Rules made by the Government
under this Act;
(k) 'Notification' means a notification published in the Andhra
Pradesh Gazette; and the word 'Notified' shall be construed
accordingly;
(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;
(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.
3. Land use Conversion - (1) No agricultural land in the State shall be put to
non-agricultural purpose, without the prior1[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 conversion3[tax] so paid as per4[sub-sections (1) and (2)] is
found to be less than the3[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.
1 . 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.
2. sub-section (2) substituted by Act No. 13 of 2018, Sec.2.
3 . The word “tax” substituted for the word “fee/fees” wherever it occurs, by Act No. 16 of 2012,
Sec.4.4 . 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 conversion3[tax], it shall be deemed that the
amount paid is sufficient for the purpose.
1(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.]
4. Power to levy and collect conversion3[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 conversion3[tax] for non-agricultural purposes, at the
rate of4[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 under6[omitted], Greater Visakhapatnam Municipal Corporation and
Vijayawada Municipal Corporation, shall have to pay a conversion tax for non-
agricultural purposes, at the rate of7[2%] of the basic value of the land].
 (2) For the purpose of this section, the basic value of the land shall be
fixed in such manner as may be prescribed.
5. Authority competent to convert agricultural land for non-agricultural
purpose - The Revenue Divisional Officer or any officer to be notified by the
Government in this behalf shall be competent to8[issue notice under sub-
section (3) of section 3 and impose fine under sub-section (2) of section 6].
6. Penalty - (1) If any agricultural land has been put to non-agricultural
purpose without9[Payment of Conversion Tax] as required under section 3, the
the land shall be deemed to have been converted into non-agricultural purpose.
(2) Upon such deemed conversion, the competent authority shall impose
a fine of 50% over and above the conversion3tax for the said land specified
under section 4 in such manner as may be prescribed.
(3) The owner or occupier of the land shall pay the fine so imposed under1Sub-
1Sub-Sections (1) and (2) in such manner as may be prescribed.
1 . In Section 3 sub-section (6) along with the proviso is omitted by Act No. 13 of 2018, Sec.2.
2 . sub-section (7) added by the Act No. 32 of 2020, Section 2.3 . The word “tax” substituted for the word “fee/fees” wherever it occurs, by Act No. 16 of 2012,
Sec.4.
4 . The expression “3%” substituted in place of expression “9%” by Act No. 13 of 2018, Sec.3.
5 . The proviso added by Act No. 16 of 2012, Sec.2.6 . The words “Greater Hyderabad Municipal Corporation” is omitted by Act No. Act No. 13 of
2018, Sec.3.7 . The expression “2%” substituted for the expression “5%” by Act No. 13 of 2018, Sec.3.
8 . The words substituted by Act No. 13 of 2018, Sec.4.
9 . The words “Payment of Conversion Tax” substituted for the words “obtaining the permission”
by Act No. 13 of 2018, Sec.5.
(4) Any5[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.
7. Act not to apply to certain lands - Nothing in this Act shall apply to -
(a) Lands owned by the State Government;
(b) Lands owned by a local authority and used for any communal
purposes so long as the land is not used for commercial purposes;
(c) Lands used for religious or charitable purposes;
(d) Lands used by owner for household industries involving
traditional occupation, not exceeding one acre;
(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)]
8. Appeal - 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.
9. Act to Override other Laws - 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.
10. Power to give directions - 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.
11. Bar of Jurisdiction - Save as otherwise expressly provided in the Act, no
Court shall entertain any suit, or other proceeding to set-aside or modify, or
question the validity of deficit5[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.
12. Protection of action taken in good faith - 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.
1 . 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).2 . 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).
3 . The item (g) added by Act No. 13 of 2018, Sec.6.
4 . The item (h) added by Act No. 32 of 2020, Section 3.5. The word “tax” shall be substituted for the word “fee/fees” wherever it occurs, by Act No. 16
of 2012, Sec.4.
13. Power to remove difficulties - 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.
14. Power to make rules- (1) The Government may by notification make rules
for carrying out all or any of the purposes of this Act.
(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.
15. Repeal of Act 14 of 1963 - (1) The Andhra Pradesh Non-Agricultural
Lands Assessment Act, 1963 is hereby repealed.
(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.

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