CLU (Change of Land Use) in India: The Complete Guide for Landowners and Buyers
What is CLU?
CLU is the government's permission to use a piece of land for a purpose other than the one it is officially recorded for. The most common case is converting agricultural land to residential, commercial or industrial use.
CLU is the competent authority's permission to use a plot for a purpose other than its designated one, most commonly agricultural to industrial. The land stays where it is. Only its legal status in government records changes.
An example: you own two acres of farmland and want to build a warehouse. The revenue record says "agricultural," and the master plan may say something else. Until the authority approves a change, a warehouse on that land is illegal, however clean your ownership papers are.
Why CLU matters
Legality. Construction without CLU is unauthorised. Even preparing the site can count as an illegal change of use. Starting construction before obtaining CLU is illegal under Indian land use law, and project finance cannot close until CLU is obtained and land records are updated.
Bank loans. Banks usually will not finance a project on land whose use is unclear.
Resale value. Land with a CLU certificate sells faster and for more than land without one.
Ownership is not the same as permission. A sale deed records who owns the land. It does not record what you may do on it. In practice, ownership papers are not enough to build on agricultural land.
Who needs CLU?
You will probably need it if you want to:
build a house, farmhouse or colony on agricultural land
start a factory, warehouse, school, hospital or hotel on land not zoned for it
set up a solar plant or petrol pump on farmland
change an approved project to a different category, for example industrial to warehouse or commercial
On the last point, Haryana separates two situations. A "change of project" means a different product in the same permitted premises, and only a scrutiny fee applies. A "change of category," such as industrial to warehouse, commercial or institutional, is treated as a CLU case.
You may not need CLU if…
The master plan already marks your plot for the use you want, and your state's rules allow a conforming use with building approval alone.
Your land lies outside any notified controlled or planning area. This depends heavily on the state, so confirm it in writing from the local authority.
You are using the land only for farming.
Haryana's June 2026 reforms (below) widened the exemptions there.
CLU, NA conversion and zoning
These three terms get mixed up.
Term | What it means |
CLU | Permission to change a plot's use, mostly used in Punjab, Haryana, Chandigarh and nearby areas |
NA conversion | The same idea under another name, used in Maharashtra, Karnataka, Gujarat and others |
Zoning / master plan | The government's plan marking each area as residential, commercial, industrial, agricultural and so on |
Licence / building plan approval | A separate permission to develop a colony or construct a building, usually needed after CLU |
Who grants CLU? It depends on the state
Land is a state subject in India, so there is no single national CLU law. Land use conversion is governed mainly by state revenue laws, since land is a state subject under the Seventh Schedule of the Constitution. The name, authority and fees change from state to state. sansalegal
State / region | What it is called and who decides |
Haryana | CLU, granted by the Town & Country Planning Department (DTCP), or by municipal bodies within municipal limits |
Punjab | CLU through PUDA, its regional authorities or the urban local body |
Maharashtra | NA conversion, now tied to planning permission (see below) |
Karnataka | Conversion under Section 95 of the Karnataka Land Revenue Act, with the Deputy Commissioner as authority |
Rajasthan | Conversion under Section 90-A of the Rajasthan Land Revenue Act |
Delhi | Land use change through the DDA and the Master Plan; agricultural land is also covered by the Delhi Land Reforms Act |
Details on Haryana and Punjab:
In Haryana, the Town and Country Planning Department grants CLU for residential, industrial, commercial, institutional, farmhouse and recreational use under the Punjab Scheduled Roads and Controlled Areas Restriction of Unregulated Development Act, 1963.
Municipal Acts were amended in 2014 so that urban local bodies can grant CLU within municipal corporation limits.
In Punjab, agricultural land inside planning areas changes use by CLU permission from PUDA, its regional authorities or the urban local body, following the master plan's zoning and the fees in current policy.
Step-by-step CLU process (typical flow)
Exact steps vary by state, but most follow this order.
Step 1: Check the zoning. Look at the master plan or development plan and confirm that your intended use is allowed in that zone. This is the most important step. If the plan excludes your use, the application will probably be rejected.
Step 2: Collect your documents. The list is given below.
Step 3: Apply to the competent authority. Many states now take applications online. Several states allow online land-use conversion, including Andhra Pradesh, Karnataka, Punjab, Haryana, Rajasthan and West Bengal.
Step 4: Scrutiny and site inspection. Officials verify ownership, check the site plan and may visit the land.
Step 5: Receive the demand notice. You are told how much to pay. In Haryana's municipal areas, the scrutiny fee is Rs 10 per sq m of the site, while EDC, conversion charges and IDC (if applicable) are demanded at the Letter of Intent stage.
Step 6: Pay the charges and sign the agreement. Haryana has moved this stage online. Haryana made the CLU process paperless through e-sign, Aadhaar authentication and digital signature options for the CLU-II agreement, with the LoI shared through the citizen dashboard.
Step 7: Get the permission and update the records. After approval, make sure the revenue records show the new land use. Without this, the change exists only on paper.
Documents usually required
Keep these ready:
Ownership proof: sale deed, registry or lease deed
Revenue records: jamabandi, khasra/khewat, sajra or naksha, mutation (intikal)
Site plan with dimensions, prepared by an architect
Land schedule table and land utilisation plan
ID proof of the applicant, plus an affidavit where required
NOC for road access if the plot touches a national highway, state highway or scheduled road
Project details and proposed use
Haryana's municipal CLU page lists items such as CLU Form-1, the lease or registration deed, revenue documents like sajra, intikal and jamabandi, a site plan, a land schedule table, a land utilisation plan and an access NOC. Institutional applications may also need a genuineness certificate from the DC office. Always check the latest checklist on your state's portal.
What does CLU cost?
CLU is not a single fee. Expect several components:
Scrutiny or processing fee, usually charged per sq m or per acre
Conversion charges, the main fee, normally area × a notified rate for the zone and the new use
EDC and IDC (external and internal development charges), where applicable
Stamp duty and registration costs if the agreement or later transactions attract them
Consultant, architect and legal fees
Rates differ by state, zone, road type and use. For example, Haryana once set different conversion charges for guest houses in the Gurugram-Manesar complex depending on whether they sat on a national highway, sector road or other road. So a number you hear from a friend in another district means very little. Get the current notified rate from the authority.
Also note that circle rates and collector rates affect your overall land cost. One 2026 guide notes that Haryana raised collector rates three times between October 2024 and April 2026, so rates should be checked before any deal.
How long does it take?
It varies. Haryana's planning department has said it aims to decide complete applications within 45 days, down from 60 days for industries and 90 days in other cases. An incomplete file stops the clock, so document errors are the most common cause of delay.
Latest updates for 2026
Haryana cut the paperwork. On 4 June 2026, the Haryana government announced that CLU paperwork had been reduced from 19 documents to three, and that close to 70 per cent of the state's land area no longer needs CLU permission. Because the exemption depends on location, verify whether your specific plot is covered before assuming you can skip CLU. Maharashtra changed its NA system. Under the Maharashtra Land Revenue Code (Second Amendment) Act, 2025, no Collector permission for agricultural-to-NA change is needed where the use is permissible under sanctioned development and regional plans. A one-time conversion premium paid when development permission is granted replaces the old annual NA assessment. If you own land there, check which rules apply to your plot.
Rules change often, so confirm anything time-sensitive on the official portal of your state.
What happens if you build without CLU?
Penalties. Under the Delhi Land Reforms Act, 1954, using agricultural land for non-agricultural purposes without permission can bring imprisonment up to three years, a fine up to Rs 10 lakh, or both. Other states have their own penalty provisions.
Demolition or sealing of unauthorised structures.
Refused loans, registrations and utility connections.
Higher regularisation costs later, if regularisation is allowed at all.
How to check CLU status before buying land
Do this before paying any token amount.
Ask the seller for the CLU permission or certificate and read the conditions in it.
Check the land's status on the state revenue portal (jamabandi or equivalent).
Confirm with the town planning office whether the plot is in a controlled area and what the master plan says.
For a colony or plotted project, check the developer's licence and RERA registration.
Compare the plot's location, size and road access with the CLU conditions. Approval is for a specific parcel and a specific use.
Ask a local property lawyer to verify the title and the approvals.
In Haryana, for example, in controlled areas around the NCR, such as Gurugram, Faridabad, Sonipat, Panipat, Jhajjar and Rewari, agricultural land must be CLU-cleared before any non-agricultural use.
Common mistakes and reasons for rejection
Asking for a use the master plan does not allow. One Haryana local guide, for instance, says residential CLU on highway-facing strips is routinely rejected.
Assuming CLU is automatic. It is a permission, and the authority can refuse it.
Starting work before approval.
Missing access NOCs for highway-facing plots.
Unclear title or record mismatches, such as differences between the registry and the revenue record.
Not completing the final step of updating revenue records.
Ignoring conditions and deadlines. Some permissions require the land to be put to use within a set time.
Frequently asked questions
Is CLU the same as NA conversion?
Functionally yes. CLU is the common name in Punjab and Haryana, while NA conversion is used in states like Maharashtra and Karnataka.
Do I need CLU to buy agricultural land?
Usually not to buy it, though some states restrict who can buy. You need it before using the land for anything non-agricultural. A non-agriculturist in Haryana can hold farmland but cannot build on it without CLU.
Can I get CLU for any use I like?
No. The use must be permitted under the master plan or zoning for that area.
Is CLU permanent?
Not always. Permissions come with conditions, and some lapse if the land is not used within the stated period.
Can I apply online?
In many states, yes. Haryana's DTCP, for one, has an e-CLU service on its portal.
Do I need a lawyer?
It is not mandatory, but for anything beyond a small plot, a local property lawyer or town planner can save you from costly rejections.
Conclusion
CLU is the legal step between owning land and using it as you plan. Check the master plan, confirm your use is allowed, prepare clean documents, pay the notified charges and make sure the records are updated. Rules differ by state and are changing, so confirm every detail on the official portal or with a local expert before you commit money.
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