Gujarat High Court

Revised Jantri rates cannot be applied retrospectively to demand differential premium for prior tenure conversion orders.

AMBALAL GALDAS PATEL vs STATE OF GUJARAT

Gujarat High CourtJUDGMENT: May 07, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

On 31.03.2011, the District Collector (Respondent No. 2) granted this conversion subject to the condition that the petitioners obtain Non-Agricultural (NA) permission within one year

Source reference: p. 2

The petitioners paid a premium of Rs. 70,44,000/- and applied for NA permission under Section 65 of the Gujarat Land Revenue Code.

Source reference: p. 3

However, the Respondent No. 2, relying on a Government Resolution (GR) dated 17.02.2012 and revised Jantri rates effective from 18.04.2011, issued an order on 18.08.2025 demanding an additional differential premium of Rs. 1,67,29,500/-

Source reference: p. 3

The petitioners challenged this demand, arguing that their rights were governed by the original order dated 31.03.2011 and that the subsequent GRs/revised rates were inapplicable to their prior application

Source reference: p. 3
02

Issues

1. Whether the respondent authority was legally justified in demanding a differential premium based on revised Jantri rates/GRs introduced after the original conversion order was passed on 31.03.2011?

Source reference: p. 3-4
03

Law Applied

The Court primarily applied Section 65 of the Gujarat Land Revenue Code, 1879, which governs the procedure for obtaining permission to use land for non-agricultural purposes

Source reference: p. 2

The court also examined the applicability of Government Resolutions dated 18.04.2011 and 17.02.2012 regarding the calculation of premium for tenure conversion.

Source reference: p. 3-4

The inherent legal principle applied is that administrative demands for premium must align with the conditions set at the time of the original tenure conversion order, particularly if the applicant has already complied with the then-existing financial obligations

Source reference: p. 3-4
04

Reasoning

The Court noted that the petitioners had already converted their land to old tenure via the order dated 31.03.2011 upon payment of the full premium of Rs. 70,44,000/-

Source reference: p. 3

The petitioners had adhered to Condition No. 2 of that order by applying for NA permission within the stipulated timeframe

Source reference: p. 2

The Court found that the respondent's reliance on the GR dated 18.04.2011 (revised Jantri rates) to demand additional money was misplaced because the petitioners’ status and obligations were crystallized under the previous regime and the order of March 2011.

Source reference: p. 3-4

Since the petitioners were identically situated to others who had received relief in similar cases, the demand for a differential premium of Rs. 1,67,29,500/- was deemed to adversely affect the petitioners' vested rights and was contrary to law

Source reference: p. 3-4
05

Holding

The Court held that the demand for differential premium was unsustainable.

The High Court allowed the petition and quashed the impugned order dated 18.08.2025 passed by the District Collector, Gandhinagar.

Source reference: p. 4

Rule was made absolute

Source reference: p. 4
Gujarat High Court

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AMBALAL GALDAS PATELvsSTATE OF GUJARAT

Gujarat High Court · May 07, 2026

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