Quick answer: NALA conversion in Telangana is the legal change of a land parcel from agricultural to non-agricultural use under the Telangana Agricultural Land (Conversion for Non-Agricultural Purposes) Act, 2006. Since 2025 the application is filed online on the Bhu Bharati portal and processed by the Tahsildar, who is the competent authority after a 2020 amendment. You pay a conversion tax calculated on the government basic value of the land, and the portal shows the exact amount before you book a slot.
For plot buyers, NALA is one of the first documents to ask for. A plot in a layout that sits on unconverted agricultural land can face problems with building permission, bank loans and resale. This guide explains the current process, fees, documents and checks.
Key facts at a glance
- Law: Telangana Agricultural Land (Conversion for Non-Agricultural Purposes) Act, 2006, amended in 2012, 2016 and by Act No. 19 of 2020.
- Competent authority: Tahsildar, or another officer the government notifies (Section 5, as amended in 2020).
- Where to apply: Bhu Bharati portal, Transactional Services → “Application for NALA” or “Application for NALA without Passbook”.
- Fee basis: conversion tax at rates the government prescribes, calculated on the basic value of the land. The widely cited rates are 2% of basic value inside GHMC and 3% in other notified areas (set in 2016).
- Penalty: using land for non-agricultural purposes without conversion attracts a fine of 50% over and above the conversion tax (Section 6).
- After NALA: layouts still need HMDA or DTCP approval; buildings still need local-body permission.
What is NALA conversion?
NALA is short for Non-Agricultural Land Assessment, the older name for the levy. Today the term is used for the whole process of converting agricultural land for residential, commercial or industrial use.
Under the 2006 Act, the owner of agricultural land who wants to use it for anything other than farming must get the land converted and pay a conversion tax. If land is used for non-agricultural purposes without permission, the Act treats it as deemed converted and the authority imposes a fine of 50% on top of the conversion tax.
Does NALA conversion now run through Bhu Bharati?
Yes. The Telangana Bhu Bharati (Record of Rights in Land) Act, 2025 replaced Dharani, and its rules took effect on 14 April 2025. The NALA application is now a transactional service on the Bhu Bharati portal, linked to the land record. The portal offers these NALA-related modules:
| Bhu Bharati module | When to use it | What to keep ready |
|---|---|---|
| Application for NALA | Land has a pattadar passbook (PPB) | PPB number, survey number |
| Application for NALA without Passbook | No passbook was issued for the land | Survey number, land details |
| Application for Pending NALA | Land was converted before Bhu Bharati but the record still shows agriculture | Old NALA challan or conversion order |
| Modification request (NALA to agriculture) | Land was wrongly marked as converted | Record showing the wrong marking |
The 2020 amendment made the Tahsildar the competent authority under Section 5. In the Bhu Bharati workflow, the application goes to the Tahsildar’s login for processing after you upload the signed undertaking and book a slot.
How do I apply for NALA conversion on Bhu Bharati?
- Check eligibility. The parcel should have a clean record and no prohibitory marking. Assigned land, government land and land on the Section 22A prohibited list cannot be converted by a simple application.
- Log in to Bhu Bharati and open Transactional Services.
- Choose the right module: “Application for NALA” if you have a passbook, otherwise “Application for NALA without Passbook”.
- Enter the survey number and extent you want converted, and the intended use.
- Pay the conversion tax. The portal calculates the amount and generates an e-Challan. Pending cases without a passbook may involve two payments: a mutation fee and the NALA fee.
- Upload the signed undertaking and book a slot at the Tahsildar office.
- Attend the slot with original documents.
- Collect the conversion proceedings and check that the land classification on Bhu Bharati has changed to non-agricultural.
Save the application number, e-Challan and transaction summary. You need them for any status check or appeal.
What documents are needed for NALA conversion?
| Document | Why it is needed |
|---|---|
| Pattadar passbook (if issued) | Proof of ownership in the land record |
| Title deed / sale deed | Shows how you acquired the land |
| Survey number and land record extract (Bhu Bharati) | Identifies the parcel and its current classification |
| Basic value certificate or market value lookup | Basis for calculating the conversion tax |
| Sketch / survey map of the parcel | Shows the extent to be converted |
| Aadhaar / identity proof | Applicant verification |
| Signed undertaking | Required by the portal before slot booking |
| Old NALA order or challan (pending cases only) | Proof of earlier conversion |
Requirements can differ by case. Check the checklist shown in the portal module before you apply.
How much is the NALA conversion fee in Telangana?
The conversion tax is a percentage of the basic value of the land, which is the government’s registration value for that survey number, not the price you agreed with the seller. You can look up the market (basic) value on the Registration and Stamps department portal.
The rates most commonly cited are:
| Area | Conversion tax |
|---|---|
| Inside GHMC limits | 2% of basic value |
| Other notified areas | 3% of basic value |
These rates were set by a 2016 government order. Since the 2020 amendment, Section 4 of the Act says the tax is payable “as per the rates prescribed by the Government from time to time”, so the rate can be changed by order. Older articles quoting 5% or 9% are out of date. Because the Bhu Bharati portal calculates the fee for each parcel, treat the portal figure as final.
Worked example (illustrative only). If the basic value of 1 acre is ₹50 lakh and the land is outside GHMC, 3% would be ₹1.5 lakh. Your real figure depends on the basic value of your survey number and the rate in force.
Separately, budget for stamp duty and registration when you buy. See registration charges in Telangana.
How long does NALA conversion take?
The portal does not publish a fixed disposal timeline. Under Dharani, conversion was often completed at the Tahsildar slot. Under Bhu Bharati, guides report that clean, well-documented parcels move in weeks, while disputes, missing passbooks or prohibitory markings take longer. Plan for some buffer if a sale or loan depends on it.
Why NALA matters for plot buyers
If you are buying an open plot, NALA is not just the seller’s problem.
- Layout approval needs it. HMDA or DTCP layout approval is given for non-agricultural land. A venture without NALA on the parent survey number is a warning sign.
- Building permission. Local bodies generally need the land to be non-agricultural before approving a house plan.
- Home loans. Banks usually ask for NALA proceedings along with layout approval before they fund a plot purchase or construction.
- Penalty risk. If the land was used as plots without conversion, a 50% fine over the conversion tax can be levied on the owner or occupier, and unpaid amounts can be recovered as land revenue.
- Resale. The next buyer’s lawyer will ask for the same papers.
NALA alone does not make a plot legal. It is one layer. Our comparison of HMDA plots vs gram panchayat plots explains why layout approval matters as much.
What to ask the seller
- The NALA conversion proceedings number and date for the parent survey number.
- A Bhu Bharati extract showing the land as non-agricultural.
- The layout approval (HMDA, DTCP or FCDA, depending on area) and the approved layout plan.
- An encumbrance certificate covering the period before and after conversion.
FAQ
What is NALA conversion in Telangana?
NALA conversion is the legal change of land use from agricultural to non-agricultural under the Telangana Agricultural Land (Conversion for Non-Agricultural Purposes) Act, 2006. The owner pays a conversion tax based on the land’s basic value, and the Tahsildar issues conversion proceedings. Without it, using farm land for houses or plots can attract a penalty.
Is NALA conversion done on Bhu Bharati now?
Yes. Since Bhu Bharati replaced Dharani in 2025, the NALA application is filed online under Transactional Services on bhubharati.telangana.gov.in. There are separate modules for land with a passbook, land without a passbook, and pending conversions done before Bhu Bharati. The Tahsildar processes the application after slot booking.
What is the NALA conversion fee in Telangana?
The fee is a conversion tax calculated on the government basic value, not the sale price. The rates commonly cited are 2% of basic value inside GHMC and 3% in other notified areas, set in 2016. The government can revise rates by order, so use the amount the Bhu Bharati portal calculates for your survey number.
Who approves agricultural to non-agricultural conversion in Telangana?
After the 2020 amendment, Section 5 of the Act names the Tahsildar, or any officer the government notifies, as the competent authority for land in their jurisdiction. Appeals go to the Collector. Layout and building approvals are separate and come from HMDA, DTCP or the local body.
What happens if land is used without NALA conversion?
The Act treats the land as deemed converted and the competent authority imposes a fine of 50% over and above the conversion tax. Unpaid tax and penalty can be recovered as arrears of land revenue. It can also block building permission, bank loans and smooth resale.
Does a plot buyer need to check NALA?
Yes. Ask for the NALA proceedings for the parent survey number and a Bhu Bharati record showing non-agricultural use. Banks and building authorities usually ask for them. NALA is not enough on its own, though, and you should also check layout approval and the encumbrance certificate.
Find plots with clear paperwork
When you shortlist a plot, ask the broker for the NALA proceedings and layout approval at the start, not at the registration stage. You can browse verified plot listings across Hyderabad on Broker Network and use the questions above when you speak to the seller.
