Odisha Govt Notifies Rationalisation of Conversion Fees for Leased Residential Land

Bhubaneswar: The General Administration & Public Grievance (GA & PG) Department has notified the rationalisation of assessment of conversion fee in respect of land leased out by the department in favor of different individuals in different points of time used for residential purpose.

The new policy, approved by the state cabinet, aims to streamline the process of converting leased land to freehold status.

Under the revised guidelines, the conversion fee for leased land will now be calculated as follows:

A fee of 3% of the Benchmark Valuation (BMV) will be applied for properties where buildings have been constructed as per the approved building plan, without any deviations.

For cases where deviations from the approved plan are within permissible limits and have been regularized by the competent authority, the conversion fee will also be set at 3% of the BMV.

Properties with deviations beyond permissible limits will not be eligible for conversion until regularized by the competent authority.

Applicants seeking freehold status must submit a certificate from the Bhubaneswar Municipal Corporation (BMC) or Bhubaneswar Development Authority (BDA) confirming that the construction adheres to the approved plan, has deviations within permissible limits, or has been compounded for deviations.

This policy replaces the earlier 10% conversion fee structure and was finalised following a meeting on June 3, 2025, chaired by the Chief Secretary of Odisha.

The move is expected to simplify the conversion process and provide clarity for leaseholders seeking to convert their residential properties to freehold status.