In a significant move to slash bureaucratic delays and boost investor confidence, the Karnataka government has enacted a sweeping reform of its decades-old land conversion process. The state's revenue department notified the Karnataka Land Revenue (Amendment) Rules-2025 on Tuesday, effectively replacing the opaque and lengthy regime established in 1966 with a streamlined, digital-first system.
Core of the Reform: New Rules for a New Era
The heart of this administrative transformation lies in the introduction of new Rules 106B to 106F. These rules fundamentally redefine the procedure for converting agricultural land to non-agricultural use under Section 95 of the Karnataka Land Revenue Act. The government has smartly categorized the process based on the land's location, creating distinct pathways for areas within approved master plans, those outside planning zones, and land designated for small industries and renewable energy projects.
One of the most impactful changes benefits landowners in urban areas like Bengaluru. For agricultural land falling within an approved master plan, the mandatory prior permission from the deputy commissioner (DC) has been scrapped. Now, landowners simply need to file an online application with an affidavit to the relevant planning authority and pay the conversion fee. Upon successful payment, a digital receipt is issued and automatically shared with the DC's office for updating revenue records. This move is expected to drastically cut down the months-long delays previously common in urban centres due to overlapping approvals.
Strict Timelines and Deemed Approvals
For agricultural land located outside master plan limits, the deputy commissioner remains the approving authority. However, the process is now bound by strict, non-negotiable timelines. The DC must seek necessary reports from planning authorities, the tahsildar, and the assistant commissioner within 15 days and must decide on the application within the subsequent two weeks.
Critically, if no decision is communicated within 30 days of the application being filed, the proposal will be deemed provisionally approved. This triggers an automatic demand notice for the conversion fee. Once the fee is paid, a digitally signed conversion order is generated automatically, eliminating any room for discretionary delays.
"The intent of these amendments is to eliminate procedural delays, bring certainty to investors and citizens and ensure that land administration is easy. By leveraging technology and clear timelines, we are making the system more transparent and accountable. There will be no hanky panky in the process," stated Rajender Kumar Kataria, Principal Secretary (Revenue).
Boost for Manufacturing and Green Energy
In a clear push to promote industrial growth and clean energy, the government has introduced provisions for automatic conversion. Up to 2 acres of land for new small-scale industries and for projects approved under the Karnataka Renewable Energy Policy 2022–27 will qualify. These projects no longer need prior DC approval. The requirement is limited to submitting an online application along with necessary departmental clearances and payment of applicable fees.
Higher Accountability and Rationalised Fees
To prevent potential misuse of the simplified system, the reforms come with stringent penalties. If affidavits or submitted documents are found to be forged or misleading, the government can cancel the conversion, forfeit the fees, and even confiscate the land. Penalties of up to Rs 1 lakh and daily fines of Rs 2,500 for continued violations have been prescribed, alongside the possibility of criminal prosecution.
The amendments also rationalise the conversion fee structure, linking rates to the land's proximity to urban centres. Land within 18 km of the Greater Bengaluru Area (GBA) limits will attract the highest rates, while charges for rural areas will be significantly lower, a move designed to reflect prevailing market realities and development pressure.
This comprehensive overhaul marks a decisive shift towards a more predictable, efficient, and investor-friendly land governance framework in Karnataka, aiming to accelerate economic development across the state.
