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Renu Suresh

Expert

Published on: Mar 28, 2026

Bihar Land Conversion

Agricultural lands cannot be utilised for the residential, industrial or commercial purpose besides on conversion of the same into non-agricultural lands. The process of converting agricultural land for non-agricultural uses is known as land conversion. As per the provisions contained in Bihar Agriculture Land (Conversion for Non-Agriculture Purposes) Act, 2010, Agriculture land in the State cannot be used for the non-agriculture purpose, without the prior permission of the competent authority, i.e. Sub-Divisional Officer. In this article, we look at the procedure for Bihar land conversion in detail.

Bihar Agriculture Land (Conversion for Non-Agriculture Purposes) Act, 2010

As mentioned above, Bihar Agriculture Land (Conversion for Non-Agriculture Purposes) Act, 2010, moderates the process of conversion of agricultural land for non-agriculture purpose in the state. The method of conversion of land will be completed on payment of a conversion fee. Note: This Act will not apply to any extent if the area comprising the agriculture land is notified as commercial, industrial or urban area either by the publication of Master Plan.

Prescribed Authority for Land Conversion

The Sub Divisional Officer will be competent to order, in respect of the land situated within his territorial jurisdiction, conversion of land from agriculture purpose to non-agriculture purpose.

Exempted Lands

No permission for conversion will be required in respect of the following lands:
  • Land owned by the Bihar Government
  • Property owned by a local authority which is used for any community purpose so long as the area is not used for commercial purpose
  • Land used for religious, social or charitable purposes so long as the land is not used for commercial purpose
  • Property used for household micro-industries involving traditional occupation, not exceeding one acre
  • The area used for small shops subject to a maximum of 500 square feet
  • Land used for such other purposes as may be notified by the Government from time to time
  • Land use specified in Section 23 (2) of The Bihar Tenancy Act, 1885

Time Frame

The conversion permission letter will be issued or rejected by the competent authority within ninety days from the date of the receipt of the application.

Conversion fee

Every occupier or owner of agriculture land has to pay a conversion fee for using the land for non-agriculture purposes, at the rate of 10% of the market value of the property in areas as notified by the Government from time to time. Market value means the value of the agriculture land as determined by the Collector under the provisions of the Indian Stamp Act, 1899.

Exemption from Conversion Fees

Conversion may be allowed in case of issue and policy appertaining to industry notified by the Department of Industry or Government of Bihar, but no conversion fees will be payable.

Application for Land conversion

Procedure for applying conversion of agriculture land into the non-agriculture land is given here.

Approach Sub Divisional Officer

Step 1: Owner or occupier, who is seeking permission for conversion of Agricultural land for non-agricultural purposes have to submit an application form in prescribed format along with conversion fee as specified above to the Sub-Divisional Officer in whose jurisdiction the concerning agriculture land is situated.

Application for waiver of conversion fee

For waiver of pay for specific condition (refer above) Owner or occupier has to apply to the competent authority. Herewith, we have attached application for exemption from the payment of conversion.

Verification by SDO

Step 2: On receipt of the application, concern land records will be verified by the component authority. Step 3: Concerned authority will conduct an enquiry and report whether the land schedule as applied can be allowed for conversion. Permission for conversion may be imposed on conversion for the following objects:
  • To secure the public health, safety and convenience
  • In the case of land which is to be used as building sites
  • To ensure the dimensions, arrangement and accessibility of the sites are adequate for the health and convenience of occupiers or are suitable locally

Correction in Land Records

Step 4: If it is found that the suit land can be allowed for conversion, then the necessary order will be passed for correction of the land record. Note:  In case of applications are rejected, the reasons for rejection will be recorded in writing and communicated to the owner/occupier.

Get Permission Letter for Conversion

Permission Letter for conversion will be issued to owner or occupier.  After the permission for conversion of the agriculture land for non-agriculture purposes is accorded the landowner has to pay rent, cess in respect of the portion of property for which the permission has been granted at the rate of ten times of the lease, cess of that portion of land being paid by him prior to such conversion.

Application for Conversions made before Commencement of BAL Act

 In case of conversion has been made after the coming into force of the Bihar Act 21, 1993 and prior to the commencement of Bihar Conversion Act 2010,the owner/occupier is responsible  to apply to the competent authority in prescribed application form stating the fact of the said conversion within a period of six months from the date of the commencement of BAL Act along with conversion fee and along with an additional conversion fee of 1% of the current market value of the land concerned.

Penalty for Unauthorised Conversion

The competent authority will issue a notice to the owner responsible for illegal conversion to appear in the court and submit a show cause regarding the reported conversion of agricultural land into non-agriculture use. The competent authority, if he/she are satisfied that the conversion for non-agriculture uses is unauthorised, will impose a penalty. For such unauthorised conversion, the owner has to pay a penalty of 50% of the conversion fee over and above the conversion fee.
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