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.
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
| State | Working term | What we could confirm | Our page |
|---|---|---|---|
| Haryana | CLU | See our Haryana process page | CLU Haryana process and fees |
| Uttar Pradesh | Land use conversion | See our UP page | Land use conversion in Uttar Pradesh |
| Rajasthan | Conversion under the land revenue law | See our Rajasthan page | Land conversion in Rajasthan, Section 90A |
| Punjab | Change of land use | A 2004 Government letter and a December 2025 press report; current rules not confirmed | Punjab CLU |
| Uttarakhand | Section 143 declaration | Reported through a 2025 Supreme Court judgment; text not opened | Uttarakhand Section 143 |
| Himachal Pradesh | Change of land use under the TCP Act, plus Section 118 | Third-party copy of the TCP Act and a department procedure note | Himachal 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
- Check the recorded use in the latest record; see how to check land records online.
- Identify the master plan or development plan zone; see land use zones explained and how to read a master plan.
- Find out which authority issues the conversion order in that state and area.
- Ask for the order, or the written procedure and a fee calculation if it is not yet done.
- Check the land is eligible for the buyer; see can a non-farmer buy agricultural land and who can own farmland in India.
- Verify title in parallel; see how to verify land title.
- Plan the registration and mutation steps; see land registration process.
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?
Is CLU the same as NA conversion?
Did Maharashtra remove NA permission?
Is there a conversion fee in Maharashtra?
Does Uttarakhand use CLU?
Do I need conversion to build a farmhouse?
Can I buy first and convert later?
Who issues the conversion order?
Does conversion change stamp duty?
Where can I read each corridor state's rules?
Sources
- Mondaq: Sanad / NA permission no longer required for permissible non-agricultural use (Maharashtra Land Revenue Code, Sections 42 and 47)
- Verdictum: Supreme Court judgment report, 2025 INSC 1005 (Section 143, Uttarakhand reference)
- Himachal Pradesh Town and Country Planning Act, 1977, third-party copy on PRS India
- Government of Punjab, Housing and Urban Development letter dated 28 June 2004 (hosted on gmada.gov.in)





