Odisha Govt slashes land conversion fee for residential plots to 3%

Bhubaneswar, June 13: In a significant relief to leaseholders, the Odisha government has reduced the land conversion fee from 10% to 3% of the benchmark value (BMV) for residential plots leased out by the General Administration & Public Grievance (GA & PG) Department.

This decision, announced via official notification on Friday, is applicable to lands originally leased by the Odisha State Housing Board or development authorities like the Bhubaneswar Development Authority (BDA).

The revised structure applies only to properties constructed strictly for residential purposes. According to the notification, a 3% conversion fee will be levied in cases where the building has been constructed as per the approved plan or if minor deviations, within permissible limits, have been regularised by the competent authority.

However, if the construction involves deviations beyond the permissible limit, conversion will not be allowed unless the structure is regularised by the concerned authority. Applicants must also submit a certificate from the relevant authority (such as BMC or BDA) confirming the status of plan deviations at the time of applying for freehold conversion.

The new rule was approved by the Cabinet in a meeting held on June 3, 2025, chaired by the Chief Secretary.