Renu Suresh

Expert

Published on: Sep 17, 2026

Bihar Land Conversion

Agricultural lands cannot be utilised for residential, industrial, or commercial purposes unless they are converted into non-agricultural lands. This process, referred to as land conversion, is governed by the Bihar Agriculture Land (Conversion for Non-Agriculture Purposes) Act, 2010. The Act mandates that agricultural lands in the state cannot be used for non-agricultural purposes without prior permission from the competent authority, i.e., Sub-Divisional Officer. In this article, we detail the procedure for obtaining land conversion in Bihar.

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

As outlined, the Bihar Agriculture Land (Conversion for Non-Agriculture Purposes) Act, 2010, regulates the conversion of agricultural land in the state. This process is completed upon payment of a specified conversion fee. Notably, the Act will not apply if the area containing the agricultural land is notified as commercial, industrial, or urban under a Master Plan publication.

Prescribed Authority for Land Conversion

The Sub Divisional Officer has the authority to approve the conversion of land from agricultural to non-agricultural purposes within his territorial jurisdiction.

Exempted Lands

Certain lands are exempt from needing conversion permission, including:

Land owned by the Bihar Government
Properties owned by local authorities for community purposes, not used commercially
Lands used for religious, social, or charitable purposes, unless used commercially
Property for household micro-industries of traditional occupations, using up to one acre
Areas for small shops not exceeding 500 square feet
Lands for otherwise notified purposes by the Government
Land use as specified in Section 23 (2) of the Bihar Tenancy Act, 1885

Time Frame

The competent authority will issue or reject the conversion permission letter within ninety days of receiving the application.

Conversion Fee

Landowners or occupiers must pay a conversion fee, which is 10% of the market value of the property in government-notified areas. The market value is determined by the Collector, per the Indian Stamp Act, 1899.

Exemption from Conversion Fees

Conversions for purposes aligning with government or industry policies may not incur conversion fees.

Application for Land Conversion

The steps for applying for land conversion are outlined below:

Approach Sub-Divisional Officer

Step 1: The applicant must submit a completed application form, along with the specified conversion fee, to the Sub-Divisional Officer of the jurisdiction where the agricultural land is located.

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Application for Waiver of Conversion Fee

Applications for fee waivers for certain conditions should be submitted to the competent authority. We've attached an application for exemption from payment.

Verification by SDO

Step 2: Upon receiving the application, the competent authority will verify land records.

Step 3: The authority will conduct an inquiry and report if the land can be converted.

Conversion conditions may include:

Ensuring public health, safety, and convenience
Suitability of land for building sites
Ensuring site dimensions and arrangements support occupier health and convenience

Correction in Land Records

Step 4: If conversion is permitted, the necessary land record adjustments will be made.

If the application is rejected, the reasons will be documented and communicated to the applicant.

Get Permission Letter for Conversion

Approved applicants will receive a conversion permission letter. Post-approval, the landowner must remit rents and cesses at a rate of ten times the previous lease and cess amount for the converted land area.

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Applications for Conversions Before BAL Act Commencement

Conversions occurring between the enforcement of Bihar Act 21, 1993, and the BAL Act (2010) require applicants to submit documentation to the competent authority within six months of the BAL Act's commencement. This submission should include the conversion fee and an additional 1% fee based on the land's current market value.

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Penalty for Unauthorised Conversion

For illegal conversions, the competent authority will notify the landowner to appear in court and defend the unauthorized use. If deemed unauthorized, the authority will levy a penalty equating to 50% above the conversion fee.

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Frequently Asked Questions

Common questions about Bihar Land Conversion.

The Bihar Agriculture Land (Conversion for Non-Agriculture Purposes) Act, 2010 regulates the process of converting agricultural land for non-agricultural purposes in the state. It requires landowners to obtain prior permission from the competent authority (Sub-Divisional Officer) and pay a conversion fee before using agricultural land for residential, industrial, or commercial purposes.

The Sub-Divisional Officer (SDO) is the competent authority to order the conversion of agricultural land to non-agricultural purposes within their territorial jurisdiction in Bihar.

Yes, there are certain exemptions where permission for conversion is not required. These include land owned by the Bihar Government, land used for religious, social or charitable purposes (not for commercial use), land used for household micro-industries involving traditional occupation up to one acre, and land used for small shops up to 500 square feet.

The conversion fee is 10% of the market value of the agricultural land, as determined by the Collector under the Indian Stamp Act, 1899.

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

If the competent authority is satisfied that the conversion of agricultural land for non-agricultural use is unauthorized, the owner will have to pay a penalty of 50% of the conversion fee over and above the conversion fee.

Yes, conversion may be allowed in case of issues and policies pertaining to industry notified by the Department of Industry or Government of Bihar, but no conversion fee will be payable.

The owner or occupier seeking permission for conversion of agricultural land for non-agricultural purposes has to submit an application form in the prescribed format along with the conversion fee to the Sub-Divisional Officer in whose jurisdiction the concerned agricultural land is situated.

Yes, if the conversion has been made after the coming into force of the Bihar Act 21, 1993 and prior to the commencement of the Bihar Conversion Act 2010, the owner/occupier has to apply to the competent authority within six months from the date of commencement of the Bihar Conversion Act 2010, along with the conversion fee and an additional conversion fee of 1% of the current market value of the land.

The competent authority may impose restrictions on land conversion to secure public health, safety, and convenience, or in the case of land 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.