Lease to freehold land conversion fee slashed by Odisha govt

In a major policy shift aimed at providing relief to leasehold property owners, the Odisha government has announced a significant reduction in the conversion fee required to turn leasehold land into freehold. 

According to a recent notification issued by the General Administration (GA) Department, the conversion fee has been cut from 10% to just 3% of the land's benchmark value.

Policy based on Cabinet decision

This move follows a decision taken earlier by the state Cabinet, which had approved a proposal to revise the conversion charges to make property ownership more accessible and affordable for common citizens.

The revised fee structure will be applicable to land leased out by various authorities, including the Bhubaneswar Development Authority (BDA), Cuttack Development Authority (CDA), and the Odisha State Housing Board, among others.

"GA & PG Department after careful examination have been pleased to approve the Rationalisation of assessment of Conversion Fee in respect of land leased out by GA & PG Department in favour of different individuals in different points of time used for residential purpose," read the notification issued by the GA & PG Dept on Friday.

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"Conversion fee shall be assessed @3% of BMV where the building has been constructed as per the approved building plan without any plan deviation. Cases where deviation has been made within the permissible limit, and regularised by the competent authority, the conversion fee shall be considered at @3% of BMV. In case the deviation is beyond the permissible limit, conversion shall not be allowed. Conversion for such type of cases shall be entertained only after regularisation by the competent authority," the notification further read.

"The applicant at the time of filing application for freehold is required to file a certificate issued by the competent authority of BMC/BDA regarding building construction without any plan deviation / deviation within the permissible limit / compounding of plan deviation. This order has been issued as per the approval of the cabinet and the decision taken in the meeting dated O3.06.2025 held under the chairmanship of the Chief Secretary, Odisha," it added.