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Land given as collateral security to bank. Bank asking to convert land
01-Jul-2023 (In Corporate Law)
Greetings of the Day!! We are running a Ltd company and for business purpose taken loan from a nationalized bank with the Collateral security of land. Land is located just adjacent to Resident Colony and is within 8 Kms of Municipality. The land is vacant and not used for any agricultural purpose for last 6 years. At the time of purchase it was registered as Agricultural land. Now the bank people asking for conversion of land as Non agricultural land. Is conversation is required ? Thanks in advance.
Your query is silent on the place where the land is situated.
The Land Revenue Act differs from state to state. As per the normal procedure, if the land is being used for non agricultural purposes (Residential / Commercial / Industrial / Others) then you will have to convert the land as per the procedure prescribed by the respective state Land Revenue Act.
The owner or the legal entity of the land has to make an application, to the competent Revenue Authority (Tahsildar or the Assistant Commissioner or the Deputy Commissioner, as the case may be, depending on the area to be converted).
The revenue authority request the Department of Town and Country Planning for issue of No Objection Certificate or opinion for conversion of land for various uses (Residential / Commercial / Industrial / Others).
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Adv. Siddhant Sharma
Delhi | 200+ Answers
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