NALA Tax burden to hit developers and buyers in Hyderabad. Highcourt dismisses writ petition filed by Developers against NALA Tax

(Excl Ventures News.)Since last several years all project developers (Plot layouts, villa layouts and even apartment complexes) were approved by HMDA with condition that the Non-Agricultural Land Assessment (NALA) tax will have to be paid based on a final decision by the courts.

Almost all real estate projects (under construction as well as completed) will now have to cough up crores as NALA Tax.

Projects under development may see plot and villa prices getting marked up.

This court order completely negates the Chief Minister''s commitment to do away with NALA Tax as announced by him at at the inaugural ceremony of the CREDAI exhibition at Hitex, in Septemeber 2004 (Check CM''s assertion at: http://exclventures.com/News/Newslink-11521.asp)

A Division Bench of the High Court at Hyderabad comprising Acting Chief Justice D.B. Bhosale and Justice S.V. Bhatt on Friday ruled that when layouts were sought to be prepared in agricultural lands, specific permission by the competent authority on payment of fee must be submitted.

The bench was upholding the provisions and application of the Andhra Pradesh Agricultural Land (Conversion for Non-Agricultural Purposes) Act, 2006, which prohibits conversion of agricultural lands into non-agricultural purposes, except with specific permission by the authority under the Act.

The bench dismissed the writ appeals filed by several real estate developers.

Developers contended that they need not pay the fee prescribed under this Act as they had already paid development fee to the urban development authority concerned, local body etc., The single judge dismissed the writ petitions. The present appeals were field challenging the judgment of a single judge.

The bench said just because development fee was paid to the local body, developers could not say they need not take permission for conversion of agricultural land for non-agricultural purposes i.e., construction of buildings.

Now the Urban Development Authorities, or the local authorities, as the case may be, could insist on submission of clearance/permission under the 2006 Act as a condition for releasing layouts. Permission would be granted after payment of fee to the Revenue divisional Officer concerned as per schedule.
Comment :

Standard Clause whih you will find in HMDA approvals of ALL Projects since last 4 to 5 years

QUOTE

The applicant has submitted interim orders from the honurable High Court dated -- -- -- in WP MP No: ----of Year ---- not to insist on production of No Objection Certificate from the authorities under the AP Agricultural Land (Conversion of Non Agricultural Purposes) Act, 2006 as pre condtion to the release of the layout. Applicant submited affidavit as per above orders of the High Court.

UNQUOTE

Q: Are both NALA Tax and Land Conversion Charges (Agricultural to Residntial or Commercial) payable?

A: Yes, both are payable since the stay on NALA Tax is removed by HC, by its order dated 28th Aug 2015

Aren't both NALA Tax and Conversion Charges the same?! If Yes, why collect twice?!

Well this is India! It happens only here! It's the same thing! Except that Conversion charge is payable to the town planning authority (HMDA or DTCP) whereas the NALA tax is payable to the respective revenue authority (Panchayat /Mandal or Municipality). The rate could be different.

The new Goverment was expected to resolve the issue but it hasn't done, though the CM had promised to abolish NALA tax

Keyword Tags Hyderabad News, NALA Tax