Farmland India
P06 Β· Land Use, CLU & NA Conversion

NA Conversion vs CLU: Agricultural to Residential (2026)

How NA permission and change of land use differ across states, and what a buyer of farmland should check first.

Farmland India Reviewed Β· Updated October 2026 Β· Official sources linked below

Turning agricultural land into residential land is controlled by each state, and the vocabulary changes at the border: non-agricultural permission in Maharashtra, change of land use in Punjab and Haryana, a Section 143 declaration in Uttarakhand. This overview compares the families and says where we could not confirm the rule.

Two families of rules: CLU and NA permission

Across India, turning farmland into residential, commercial or industrial land is controlled by state law, so there is no single national procedure. Broadly, buyers meet two families of terms. In Maharashtra and some other states, the term is non-agricultural (NA) permission, a revenue law step. In much of North India the working term is change of land use (CLU) or a land use conversion order. Our change of land use in India guide gives the general picture. This page compares the two families and shows where a farmland buyer in the six corridor states stands.

Be careful with labels. "NA conversion" in a Maharashtra advertisement and "CLU" in a Haryana advertisement may describe different legal steps with different authorities. Ask for the order itself and read the authority named in it.

Maharashtra: the change we could confirm from a legal source

Maharashtra is the clearest example of NA permission. A law firm commentary on Mondaq reports that a revised Section 42 of the Maharashtra Land Revenue Code, 1966 was notified on 31 December 2025 and read with a Government Resolution dated 10 February 2026. As reported, a separate sanad or NA permission from the Collector is no longer needed where the use is permitted under the applicable Development Plan or Regional Plan and the Planning Authority grants development permission or approves building plans. The same report says the annual NA assessment was replaced by a one-time conversion premium under a revised Section 47, paid to the Planning Authority, and that the revenue record should reflect the change of use.

We opened the commentary, not the Gazette or the Government Resolution, so this stays a secondary report. We do not print premium rates here. Anyone buying in Maharashtra should read the notified text and the GR.

Gujarat and Madhya Pradesh

Gujarat and Madhya Pradesh are often grouped with Maharashtra for non-agricultural permission. We did not open the Gujarat or Madhya Pradesh statutes or orders for this page. We therefore do not describe their sections, fees or timelines. If you are buying there, ask a local lawyer for the current rule and the authority that issues the order, and do not assume the Maharashtra pattern applies.

North India: what we know across the corridor

StateWorking termWhat we could confirmOur page
HaryanaCLUSee our Haryana process pageCLU Haryana process and fees
Uttar PradeshLand use conversionSee our UP pageLand use conversion in Uttar Pradesh
RajasthanConversion under the land revenue lawSee our Rajasthan pageLand conversion in Rajasthan, Section 90A
PunjabChange of land useA 2004 Government letter and a December 2025 press report; current rules not confirmedPunjab CLU
UttarakhandSection 143 declarationReported through a 2025 Supreme Court judgment; text not openedUttarakhand Section 143
Himachal PradeshChange of land use under the TCP Act, plus Section 118Third-party copy of the TCP Act and a department procedure noteHimachal CLU and Section 118

The differences matter. In Uttarakhand, the conversion step is a revenue declaration. In Himachal Pradesh, planning permission and a separate permission on who may hold the land both come into play. In Punjab, colony licensing and change of land use are linked through the state's property regulation law.

Agricultural to residential: the buyer's sequence

  1. Check the recorded use in the latest record; see how to check land records online.
  2. Identify the master plan or development plan zone; see land use zones explained and how to read a master plan.
  3. Find out which authority issues the conversion order in that state and area.
  4. Ask for the order, or the written procedure and a fee calculation if it is not yet done.
  5. Check the land is eligible for the buyer; see can a non-farmer buy agricultural land and who can own farmland in India.
  6. Verify title in parallel; see how to verify land title.
  7. Plan the registration and mutation steps; see land registration process.
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Order first, then deed

Where you can, make payment of the main amount conditional on the order being in hand. A deed signed first leaves you owning land that may not yet be usable for your plan.

Farmhouse buyers

Many readers want a farmhouse rather than a house plot. Rules for a farmhouse on agricultural land are state specific and sometimes need no full conversion, sometimes do. We explain what we could confirm in farmhouse rules in India. Do not assume that a farmhouse is allowed because other farmhouses stand nearby. Neighbouring construction may itself be unauthorised.

Fees and taxes

Fees differ greatly: some states charge a one-time premium, some charge by area or by land use class, and some add external development charges for colonies. We compare what we could confirm in CLU charges and fees by state. Conversion can also change stamp duty and circle rate treatment; see circle rate vs market rate and stamp duty by state. Capital gains rules for agricultural land are in capital gains on agricultural land.

What is unconfirmed

We could not confirm the Maharashtra Gazette text, Gujarat and Madhya Pradesh rules, current fees in any state, or whether other states have moved toward deemed conversion with planning approval as Maharashtra reportedly has. Read the CLU trap guide before you sign any deed that depends on a pending conversion.

Frequently Asked Questions

What is NA conversion?
It is the permission to treat agricultural land as non-agricultural. The term is common in Maharashtra, Gujarat and Madhya Pradesh. We confirmed details for Maharashtra only, and only through a secondary report.
Is CLU the same as NA conversion?
They serve a similar purpose but each state has its own law, authority and procedure. Read the order to see what it actually permits.
Did Maharashtra remove NA permission?
A law firm commentary reports that a separate NA permission is not needed where the use is permitted under the Development Plan and the Planning Authority approves. We did not open the Gazette.
Is there a conversion fee in Maharashtra?
The commentary reports a one-time premium paid to the Planning Authority in place of annual assessment. We do not print rates because we did not open the GR.
Does Uttarakhand use CLU?
The reported route is a Section 143 declaration under the Zamindari Abolition and Land Reforms Act. See our Uttarakhand page.
Do I need conversion to build a farmhouse?
It depends on the state and zone. See our farmhouse rules guide and ask the planning office in writing.
Can I buy first and convert later?
You can, but the conversion may be refused or take long. Read the CLU trap guide first.
Who issues the conversion order?
It varies by state and may be a revenue officer, a planning authority or a state department. Ask for the issuing authority's name in writing.
Does conversion change stamp duty?
It can affect the circle rate that applies. Confirm with the registration office for your area.
Where can I read each corridor state's rules?
Use the state pages linked in the table above, and compare with the all India CLU guide.

Sources

Related reading

← All P06 Land Use, CLU & NA Conversion guides

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