Land Conversion Charges Case: Disputed Rates and Timelines

In a landmark decision by the Supreme Court of India, the dispute over land conversion charges has been settled with regards to disputed rates and timelines. The case involved complexities surrounding the application process and the decision-making timeline, impacting the petitioner’s and respondent’s rights. Delve into the legal nuances and implications of this significant judgment on land conversion practices.


  • Amendment in the Goa, Daman & Diu Land Revenue Code, 1968 increased conversion rates on 22.05.2013
  • Deputy Conservator of Forest submitted report on conversion on 04.06.2013
  • Deputy Collector requested information from Mamlatdar on 09.07.2013, received on 15.07.2013
  • Town and Country Planning Department submitted report on 21.05.2013
  • Land inspection conducted on 15.05.2013, Mamlatdar submitted report on 16.05.2013
  • Respondent agreed to pay conversion charges and not seek refund on 19.07.2013
  • Communication sent to respondent and family members on 19.09.2013 to deposit enhanced rates
  • Respondent deposited conversion charges on 09.10.2013 as asked
  • Sanad granting permission for land conversion issued on 19.11.2013
  • Respondent filed writ petition seeking refund of excess amount based on rates on 08.03.2013
  • The impugned communication dated 19.09.2013 is quashed and set aside.
  • Calculation of conversion fees payable by the petitioner should be done in light of the High Court’s order.
  • The revised rates for conversion fees are applicable for the remaining area of 9354.50 sq. mtrs. added after the amendment came into force on 22.05.2013.
  • The High Court considered the judgments of the Supreme Court in Union of India & Anr. vs. Mahajan Industries Ltd. & Anr., Union of India & Ors. vs. Dev Raj Gupta & Ors., and the Delhi High Court in Ansal & Saigal Properties (P) Ltd. & Ors. vs. L. & D.O. & Ors.

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  • Whether conversion charges should be calculated based on the rates at the time of application or when the conversion order was issued.
  • Family members applied for permission to convert agricultural land on 08.03.2013.
  • The land measured 16014 sq. mtrs.
  • Key issue is determining the appropriate date for fixing the conversion charges.

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  • The judgment discussed the timelines and procedures outlined in Section 32 of the Code for conversion of land use.
  • The application for conversion of land was filed on 08.03.2013, and the 60-day timeline for decision-making expired on 07.05.2013.
  • The landowners deposited the amount determined by the Collector on 09.10.2013 under protest.
  • The High Court found that confusion arose due to the area applied for in the initial application, leading to delays in the decision-making process.
  • The judgment highlighted that the landowners did not apply for conversion of the entire land in one go, contributing to the delay.
  • No coercion was found in the filing of the indemnity bond by the authorities, as per the judgment’s analysis.
  • The High Court’s reference to the Ansal & Saigal Properties case was considered inapplicable to the current case due to differences in legal provisions.
  • The date for fixing conversion charges was determined to be the date of decision to grant the Sanad.
  • The respondent waived rights by not filing an appeal and consented to paying conversion charges by filing an affidavit-cum-indemnity bond.
  • The judgment emphasized that the payment of conversion fees is triggered upon the decision to grant the Sanad.
  • On receipt of an application, the Collector must acknowledge it within seven days.
  • The Collector has the authority to grant or refuse permission for the change of land use after conducting a proper inquiry.
  • If the application is rejected, the Collector must provide written reasons for the rejection.
  • The Collector must make a decision on the application within 60 days, and if not done, an appeal can be made to the Secretary (Revenue) who must address the appeal within 30 days.
  • When land is permitted for non-agricultural use, a sanad must be granted upon payment of prescribed fees.
  • Conversion charges were rightly imposed by the appellants on the date of decision to grant Sanad.
  • The respondent cannot challenge the conversion charges at the rates post-amendment due to their actions, deeds, conduct, and acquiescence to the order.

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  • Pending application(s) disposed of.
  • Respondent not entitled to challenge conversion charges due to own acts, deeds, and conduct.
  • Appeal allowed, setting aside High Court judgment.
  • Writ Petition No.262 of 2014 dismissed.


Case Number: C.A. No.-007576-007576 / 2019

Click here to read/download original judgement

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