Gujarat's Land Reforms to Boost Ease of Doing Busines

Created By: Shivalik Institute of Real Estate

In a significant move to boost ease of doing business and streamline land-related processes, the Government of Gujarat has implemented wide-ranging reforms in land revenue administration and stamp duty regulations. These changes are expected to bring clarity, speed, and legal transparency to land transactions and development activities across the state.
 

Simplification of the Non-Agricultural (NA) Land Conversion Process
 

One of the most notable reforms is the simplification of the Non-Agricultural (NA) land conversion process. As per the new guidelines, land parcels marked under Nagar Niyojan and converted into Juni Sharat will now be handled directly by the Mamlatdar, eliminating the need for premium payments and significantly reducing the processing timeline. 
 

Additionally, the government has introduced a new Revenue Title Cum Legal Occupancy Certificate (RTLOC), which aims to streamline land title clarity and legal occupancy status. With RTLOC in place, the NA conversion process is expected to take just 10 days, while obtaining RTLOC itself is expected to take around 30 days.
 

To further ensure authenticity in land ownership, the farmer verification process will now consider records from up to 25 years prior to the application date. 
 

New Guidelines for Sale Deeds
 

To ensure greater transparency and accountability in property transactions, the government has issued new documentation norms for sale deeds: 
 

• Properties must include front and side-view photographs in 5” x 7” color format, with the address written clearly below each image. 
   
• Both the buyer and seller must sign the photograph page to confirm the authenticity of the transaction. 
   
• For open plot transactions, inclusion of the latitude and longitude coordinates of the property is now mandatory. Failure to include these details will result in rejection of the registration. 
   

Clarification on Transfer of Undivided Share of Land 
 

The government has also clarified the legal understanding surrounding the transfer of undivided shares in properties. According to the new notification: 
 

• The transfer of an undivided property share does not entitle the buyer to independent possession of any specific portion. 
   
• Such transfers are recognized only as co-ownership rights in a joint property. 
   
• The registration of these documents must comply with relevant legal precedents to avoid disputes. 

Key Amendments Under the Gujarat Stamp Act

In an effort to make property-related transactions more accessible and affordable, the Gujarat Stamp Amendment Act introduces several beneficial changes: 
 

• Relinquishment of rights in ancestral property by legal heirs of a deceased daughter can now be executed by paying a nominal stamp duty of ₹200. 
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• For loans up to ₹1 crore, the maximum stamp duty payable has been capped at ₹5,000. 
• For loans exceeding ₹10 crore, the stamp duty ceiling has been raised from ₹8 lakh to ₹15 lakh. In cases where loans are availed from multiple banks, the cap is fixed at ₹75 lakh (excluding surcharge). 
• A fixed stamp duty of ₹5,000 will now be charged for documents related to additional guarantees.

To discourage non-compliance, the government has revised penalties related to stamp duty evasion: 
 

• If voluntarily declared, the penalty will be 2% per month, with a maximum penalty of four times the shortfall. 
• If detected by authorities, the penalty will rise to 3% per month, with a maximum of six times the unpaid amount.

For rental or lease agreements of less than one year, the government has simplified stamp duty payments: 
 

• A flat ₹500 for residential properties. 
• A flat ₹1,000 for commercial properties.