The terms change of land use and conversion are used synonymously in real estate transactions

without understanding their meaning and the distinction between the two.
When a land in a survey number coming within the jurisdiction of a town planning authority, say
the Bangalore Development uthority, is earmar!ed as a residential "one in the #omprehensive
Development $lan but the owner of the land wants to use it for industrial purposes, he will have to
obtain change of use under the provisions of %ection &'( of the )arnata!a Town and #ountry
$lanning ct, &*+&, from the Bangalore Development uthority.
,owever, in certain specific cases where the change of land use is sought from commercial or
industrial to residential or from industrial to commercial uses and purposes, the planning authority
will collect a stipulated fee and on such collection, the change of land use shall be deemed to have
been granted.
-nli!e change of land use which pertains to changing the "one earmar!ed in the master plan,
conversion of agricultural land to non(agricultural uses and purposes is carried out under the
provisions of %ection *. of the )arnata!a /and 0evenue ct, &*+', by the Deputy #ommissioner
or the %pecial Deputy #ommissioner as the case may be. 1nce a land is converted, its primary
character is changed from agricultural to non( agricultural and the land permanently loses its
agricultural character. This need not necessarily happen in the case of change of land use since only
the "oning is changed and not its primary character of being agricultural land. The process of
conversion also involves the payment of conversion fine as directed by the office of the Deputy
#ommissioner or the %pecial Deputy #ommissioner as the case may be.
Fee structure
The application for conversion from agricultural to non(agricultural residential uses and purposes
cannot be refused by the %pecial Deputy #ommissioner if the land use earmar!ed in the master plan
is residential. The fees or fine charged for change of land use and conversion differ. The change of
land use from any "one to commercial "one costs appro2imately 0s.3 per s4.ft. as against the
conversion fine levied for agricultural land to non(agricultural commercial uses and purposes which
is 0s.' per s4.ft. as on date.
5f 67 acres of land in 6B7 8illage, # Talu! and D District is earmar!ed as residential "one in the
master plan but the owner of the land wants to use it for commercial purposes, he will first have to
apply for change of land use to the town planning authority. fter obtaining the same, he will have
to apply to the Deputy #ommissioner or the %pecial Deputy #ommissioner, as the case may be,
see!ing permission for the conversion of the said agricultural land to commercial uses and purposes
since, although the land use has been changed from residential to commercial in the master plan, the
primary character of the land will remain agricultural till conversion is obtained before the same can
be put to use for commercial purposes.
9:.#.%. 0aghavan is a chartered accountant and rvind 0aghavan, an advocate;