Demand for farmland conversion spikes in Karnataka

Karnataka has seen a 71 per cent rise in applications for agricultural land to be converted into non-agricultural use, a clear sign that the government’s move to liberalise ownership of farmlands has started showing results.

Last year, there were 57,002 applications for land-use conversion. But the government received 97,718 applications until September this year, according to revenue department data.

Despite the growing interest, more could be done as applications are piling up due to delays in processing them, something Revenue Minister R Ashoka had said will be addressed via an ordinance.

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Authorities have attributed a major reform enacted two years ago, allowing non-agriculturists to buy farmlands, as the reason for rise in applicants, even as sceptics said the move has benefited land mafia the most.

Land-use conversion data for 2020 is not available as the government didn't compile it citing the pandemic.

The pandemic in 2020, however, did not come in the way of the BJP government's decision to repeal Sections 79 A, B, C and 80 of the Karnataka Land Reforms Act with retrospective effect, allowing anyone —even non-agriculturists — to purchase and own farmland.

This was positioned as a major reform to free up the land market.

“There’s no doubt that the removal of those obnoxious sections have led to an increase in land transactions,” Additional Chief Secretary (Revenue) Kapil Mohan told DH.

The Bengaluru Urban district, where the realty business is booming, has seen 6,338 applications this year seeking non-agricultural use of land against 4,331 last year.

"Earlier, due to restrictions, people looked for other ways to buy farmlands. Now that there are no restrictions, land-use conversion is officially becoming more active. It's becoming a free-market economy," realty body Credai's Bengaluru chairperson Suresh Hari said.

To meet the rush, the government has increased its disposal rate - from 77 per cent last year to 85 per cent. Still, there are 9,424 land-use conversion applications pending for more than 30 days all over the state.

Ashoka told DH last week that the government will promulgate an ordinance to simplify land-use conversion and make it happen within seven days. Hari welcomed this. "Delay in land-use conversion only leads to unwanted paperwork," he pointed out.

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According to sources, the government is also working on another policy reform to quicken mutation, the process of transferring the ownership of land from one person to another, which takes an average 35 days right now.

Senior JD(S) MLA AT Ramaswamy, an authority on land matters, is sceptical. "This helps the land mafia. They're the ones purchasing the lands and applying for conversion. With this, they're converting their black money into white," he said, slamming the government's land policy.

"It’s a money-spinner for the government, which isn't bothered about farmers or the loss of agricultural lands."