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Dispute on LRS and SUDA charges for rice mill in Gram Panchayat


15-Sep-2025 (In Corporate Law)
> “I am setting up a rice mill in a Gram Panchayat area (not under SUDA limits). The Panchayat Secretary is calculating proportional layout charges (if site is not part of the approved layout) based on site area × 1.67 × 90, referring to LR.No.1/2018/SUDA/KNR dated 13-11-2018, and has demanded around ₹6,99,469.14. My total nala converted land area is 4653.82 sq. meters, but my actual built-up area is only 1406.77 sq. meters. However, they are calculating charges on the entire land area (4653.8
Answers (1)

Answer #1
996 votes
The Panchayat cannot arbitrarily demand layout charges on the entire converted land when only part of it is being utilized for construction. As per government orders and SUDA circulars, charges are to be levied only on the built-up / utilized area, not on the balance open land. You can file a written representation before the Panchayat and District Collector citing the relevant GO/notification and demand rectification. If they refuse, you may challenge the demand before the High Court under Article 226 as arbitrary and illegal. Please connect with me through this platform so I can examine your LR notification and land conversion documents, and prepare a proper representation or writ petition to protect your rights.
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