By S&S Co. Advocates & Solicitors · Published 9 June 2026 · Informational content, not legal advice
About this article: A general explainer prepared by S&S Co. Advocates & Solicitors on a recurring type of dispute. It does not report a specific judgment or order, names no parties and gives no case citation, so it should not be cited as authority. Law and practice change; please verify against the current statute and primary sources before relying on it.
Conversion of agricultural land to non-agricultural (NA) use is governed by the land revenue code or similar law of each state. Permission is granted by the competent revenue authority on payment of a conversion fee or premium, assessed on the basis the law provides, often by reference to the land's value or rate at the time.
Landowners sometimes receive a demand, years later, for a higher fee computed at current rates, on the ground that the land was under-assessed or was wrongly classified at the time of the permission. Revenue tribunals and High Courts have been receptive to arguments that a conversion that has been granted and for which the assessed fee was paid and accepted should have a degree of finality, and that any power to reassess must be exercised within a reasonable time and on the grounds the statute allows. Whether a demand is valid depends on the particular state law and on the facts, such as any misstatement by the owner.
These decisions do not prevent the state from charging the appropriate fee on a later change in use or on a fresh conversion application.