#17 AGRAR Conversion

Ros v. Department of Agrarian Reform

GR 132477; 31Aug2005
J. Chico-Nazario
FACTS
Ros, the (4) Aboitizs, Mendezona and Cebu Industrial Park Developers Inc (petitioners) are owners/developers of
several parcels of land in Balamban, Cebu, which were reclassified as industrial lands by virtue of Municipal Ordinance
No. 101 passed by the Municipal Council of Balamban. As preparation to develop the said lands as an industrial park,
they secured all the needed permits and government certifications.1
The Department of Agrarian Reform (thru Director Llames) disallowed the conversion of the lands to industrial use and
directed the petitioners (through a letter to Mendezona) to cease and desist from further developments on the land.
The petitioners filed a complaint for injunction2 with the RTC of Toledo City. The RTC dismissed the case for having no
jurisdiction over it. Petitioners filed a petition3 with the Supreme Court, who referred the case to the CA via a Resolution.
The CA rendered a decision affirming the Order of Dismissal issued by the RTC. MR was denied by the CA, hence the
instant petition4.
ISSUE
Whether the DAR has primary jurisdiction over the case, where lands are reclassified to industrial use by the Municipality
of Balamban pursuant to its authority under the LGCi (i.e. whether such reclassification pursuant to the authority vested
by the LGC has the effect of taking such lands out of the coverage of the CARL)
HELD/RATIO
YES, the case is within the primary jurisdiction of the DAR, because afterii the passage of RA 6657, agricultural lands,
though reclassified, have to go through the process of conversion, the jurisdiction of which is vested in the Department of
Agrarian Reform.
The Court has previously5 underscored the requirement that agricultural lands must go through the process of conversion
despite having undergone reclassification; hence, reclassification does not suffice. In this case, there is no final order of
conversion yet.iii A mere reclassification of agricultural land does not automatically allow a landowner to change its use
and thus cause the ejectment of the tenants. He has to undergo the process of conversion before he is permitted to use the
agricultural land for other purposes.
The authority of the DAR to approve conversions of agricultural lands covered by Rep. Act No. 6657 to nonagricultural
uses has not been pierced by the passage of the Local Government Code. The LGC explicitly provides that nothing in
this section shall be construed as repealing or modifying in any manner the provisions of Rep. Act No. 6657.
1

Required docs:
A. Certification that the lands are classified as industrial lands by virtue of the municipal ordinance (Balamban Municipal
Planning and Development Coordinator)
B. Letter granting consent to the industrial development project (HLURB)
C. Certificate of Eligibility for Conversion to certify conformity of the project to zoning and land use ordinance (Balamban
Municipal Planning and Development Coordinator)
D. Certification that lands are outside irrigated lands and water is not available to support rice and other production (National
Irrigation Administration)
E. Certificates of Eligibility for Conversion that the lands were proper for conversion into industrial lands (Department of
Agriculture Regional Office)
F. Environment Clearances (DENR)
G. Certification that there are no capable areas and no CARP Farmer-beneficiaries within the lands (MARO of Balamban)
2
with Application for Temporary Restraining Order and a Writ of Preliminary Injunction
3
for Certiorari with Application for Temporary Restraining Order and a Writ of Preliminary Injunction
4
for review on certiorari of the decision of the CA
5
in Alarcon v. CA

#17 AGRAR Conversion

Local Government Code, Section 20(a) - Reclassification of Lands. (a) A city or municipality may, through an ordinance passed by the sanggunian after conducting public hearings for the
purpose, authorize the reclassification of agricultural lands and provide for the manner of their utilization or disposition
in the following cases: (1) when the land ceases to be economically feasible and sound for agricultural purposes as
determined by the Department of Agriculture or (2) where the land shall have substantially greater economic value for
residential, commercial, or industrial purposes, as determined by the sanggunian concerned: Provided, That such
reclassification shall be limited to the following percentage of the total agricultural land area at the time of the passage
of the ordinance:
(1) For highly urbanized and independent component cities, fifteen percent (15%);
(2) For component cities and first to the third class municipalities, ten percent (10%); and
(3) For fourth to sixth class municipalities, five percent (5%): Provided, further, That agricultural lands distributed
to agrarian reform beneficiaries pursuant to Republic Act Numbered Sixty-six hundred fifty-seven (R.A. No. 6657).
otherwise known as "The Comprehensive Agrarian Reform Law", shall not be affected by the said reclassification
and the conversion of such lands into other purposes shall be governed by Section 65 of said Act.

ii
iii

agricultural lands already reclassified before the effectivity of Rep. Act No. 6657 are exempted from conversion
Comparison:
Conversion = the act of changing the current use of a piece of agricultural land into some other use as approved by the
Department of Agrarian Reform.
Reclassification = the act of specifying how agricultural lands shall be utilized for non-agricultural uses such as residential,
industrial, commercial, as embodied in the land use plan, subject to the requirements and procedure for land use
conversion.