NEW DELHI: Land conversion will now cost more in the state. The Supreme Court has ordered that if the land is more than 25 cents, fees will have to be paid for the entire land. The Supreme Court has upheld the state government's circular. The Supreme Court had earlier stayed the high court order on land conversion fee. The Supreme Court quashed the high court's order that only a fee for the excess land is payable when the land is converted for more than 25 cents. The order was made after considering the state government's appeal.

The high court's order was to exclude 25 cents from the calculation of the conversion fee under Section 27 (a) of the Kerala Paddy Fields and Wetlands Conservation Act, 2008. The Supreme Court has now quashed this order. The order was passed by a bench comprising Justices Sanjay Karol and Manmohan.

The high court had earlier cancelled the state government's circular. The high court had ruled that if the land to be converted is more than 25 cents, a fee of 10 per cent of the fair value of the excess land only is payable. The state government filed an appeal against this. The copy of the judgment is expected to be released by this evening. Senior advocate Shaji P Chaly and others appeared on behalf of the state government.

The government argued in the Supreme Court that if the High Court verdict is implemented, the exchequer will suffer a huge financial loss. As a handout to those who want to buy a house, a conversion fee of up to 25 cents has been given

Senior advocate Shaji P. Chaly and government advocate Nishe Rajan Shankar informed that this benefit cannot be given on top of that. The Supreme Court said that the arguments of the government are valid.

If the land to be reclassified is 30 cents. The fair price per cent is Rs. 10,000. The total cost of the land is three lakhs. 30,000 rupees which is ten percent of this is the conversion fee. If the area of ​​land with the same fair value is 110 cents, the reclassification fee will be Rs.1,10,000. The fair value of the adjoining homestead of the land to be reclassified is considered for calculation.