The Andhra Pradesh Legislative Assembly on September 23, 2025, introduced the Andhra Pradesh Panchayat Raj (Amendment) Bill, 2025 to amend the Andhra Pradesh Panchayat Raj Act, 1994, with an objective to expand the scope of Panchayat functions by including a new fee category within Section 60 of the Act. The Bill will come into force on a date to be notified by the Government.
The amendment specifically adds a new clause (vi) under Section 60(3), enabling Panchayats to levy a “Fee for conversion of Agricultural lands for Non-Agricultural purposes.” This provision facilitates the Panchayats' role in regulating land use changes and enhances their revenue-generating capacity in alignment with development and planning needs across rural areas.
Additionally, the Bill repeals the Andhra Pradesh Panchayat Raj (Amendment) Ordinance, 2025, while ensuring that any actions taken under the Ordinance remain valid and are deemed to have been taken under the new Act.
[Notification No. L.A. Bill No. 17 of 2025]
