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Computation of Conversion Charges is to be done, as per effective rate, on date of grant of application; SC.

Supreme Court of India

Justice D Y Chandrachud and Justice Hrishikesh Roy

The SC {State of Odisha & Ors v. Bichitrananda Das} holds that there was no justification for the High Court to direct that the rate for the computation of conversion charges should be that which was applicable on the submission of an application on 15 September 2003. The application for conversion from leasehold to freehold must necessarily be consistent with and compliant to the governing provisions of the policy which has been framed by the State government. Unless compliance is effected, there is no right to claim conversion of the land to freehold. Consequently, it was held that the High Court was in error in directing the State to recompute the conversion charges as on 15 September 2003.

The issue falling for consideration in the present case was the date for computation of rate of conversion charges would be date of application or the date on which the application for conversion was decided. In the present case the application could not be processed due to encroachment by the respondent adjacent to the leasehold plot. The appeal by the State was allowed by the SC and the effective date was held to be when the application was decided for conversion - as the respondent failed to comply with terms/ demand and removed encroachment belatedly.

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