Buying agri land in karnataka

no point in putting hard earned money in places where the laws are so ambigious, one fine day you may end up with nothing. you see so many people with questionable sources of income investing in acres and acres bypassing every law that exists and nobody questions any of those actions. i wonder if things will ever change

Dear Members,

Any idea, if applications from non-agriculturists seeking permission to acquire farm lands in Karnataka are given approvals by the concerned authority in the past? How long would the process take? how difficult it is to get the permissions? Is it worth trying?

Thought of getting some inputs before I approach the officials.

Thanks & Regards

Sridhar

What are the other feasible options?

  1. Requesting a permission from collector/government to buy agricultural land as an individual.

  2. Starting a Pvt Ltd Company. Can somebody plz shed some light on laws for agri land acquisition by Pvt Ltd Companies or soleownership/patnership firms.

How about leasing/renting land for 5-10 years! Is that allowed?

You could do that, only problem is if you have more than 2L pa income from non-agri source. If you have the valid income certificate that can show less income, getting permission is possible. There are certain conditions laid down, like the land should be used for agri and it should be started within 5 years of buying.

I do not think you could do either of the above.

  1. Possible if your income is less than 2Lpa.
  2. Not Possible (as of now). There was some idea in the investor meet to grant permission to companies with agri products.

Hi All,

Every thing and any thing is possible.

;D ;D Only you need to marry the daughters of any of these cabinet members. ;D ;D No questions asked. :astonished: :astonished:

Till this FIL goofs up and some sleuths land up on your door. ::)

Regards

Murali

What about leasing agricultural land for 5-10 years! Is that allowed?

I don’t think you can do it if you are not eligible to own it. Check below, read section (1) carefully.


  1. Transfers to non-agriculturists barred.—(1) (a) No sale (including sales in execution of a decree of a civil court or for recovery of arrears of land revenue or for sums recoverable as arrears of land revenue), gift or exchange or lease of any land or interest therein, or

(b) no mortgage of any land or interest therein, in which the possession of the mortgaged property is delivered to the mortgagee, shall be 2[lawful]2 in favour of a person,—

(i) who is not an agriculturist, or

(ii) who being an agriculturist holds as owner or tenant or partly as owner and partly as tenant land which exceeds the limits specified in section 63 or 64; or

(iii) who is not an agricultural labourer; or

(iv) who is disentitled under section 79A or section 79B to acquire or hold any land:]3

Provided that the Assistant Commissioner having jurisdiction over the area or any officer not below the rank of an Assistant Commissioner authorised by the State Government in this behalf in respect of any area may grant permission for such sale, gift, or exchange, 3[to enable a person other than a person disentitled to acquire or hold land under section 79A or section 79B]3 who bona fide intend taking up agriculture to acquire land on such conditions as may be prescribed in addition to the following conditions, namely:—

(i) that the transferee takes up agriculture within one year from the date of acquisition of land, and

(ii) that if the transferee gives up agriculture within five years, the land shall vest in the State Government subject to payment to him of an amount equal to eight times the net annual income of the land or where the land has been purchased, the price paid for the land, if such price is less than eight times the net annual income of the land.

(2) Nothing in sub-section (1) shall apply to lands granted under section 77.

Hegde saab,

One question i have is how can we change the land classification i.e. if we can get the land classification changed to plantation type then we can hold the land without facing 79a,79b.

By Any chance do you know if its possible to change the land classification to Plantation land.( plantation land means any land in which plantation crop can be grown like Coffee, tea,Rubber, cardamom, pepper can be grown)

We can definitely grow pepper in coconut plantation right so can we convert those lands to plantation lands :wink:

So Karnataka won’t let me start my dairy…!!

Check the RTC, crops are mentioned already, you can’t change it. Theoretically even areca or rubber is plantation crop, but not really considered so. As far as i know, this was a special rule enacted to get plantation land other agri/horti land can’t be converted to plantation.

I have a query Mr. Hegde, my father satisfies the < 2 Lac requirements. However, if I include my mothers income as well, then the amount exceeds the limit. How can my father purchase agriculture land? I’m not a dependent, so I presume my income will not be considered?

my personal experience says … you can go ahead with all the necessary documents before even you register any land to the Registration office and speak to registrar.

Once youhave your fathers income certificate or proof of income they normally dont ask for your moms certificate as long as you put her as housewife :slight_smile: ( just loopholes)
Secondly speak to the RI and VA

Despite you having all the documents you should be prepared to pay about 3 - 10K per acre depending on the value of the land.

Consider these facts and move ahead.

Thanks Natureworx.

Considering the convoluted manner in which the Revenue act has been framed, I don’t want a situation where this causes problems later. I know that even a ‘poor farmer’ cannot comply with the kind of rules that has been framed, but I want to be able to keep it as clean and clear as possible.

My father has agri land in TN since 1988 and I presume that gives him the agriculturist status. I just don’t want the income of my mother’s to be a bottle neck in purchasing the land.

Dear Matrix,

no matter what you do, always remember that if there is an issue due to populist measures by the governing party or any other party, and your land deal does not meet the requirement to the T, unless you have enough political or financial clout, you risk loosing the land with either no or very low compensation. so keep this in mind

regards,
Brijesh

HI Maxtrix as Brijesh Mentioned.

There is no way we can fulfill all the requirements .

But if you just want to follow whats written in black and white, yes your moms income will be considered for calculation.

you can decide , how you want to handle this urge to purchase agriculture land :slight_smile:

Going by the law, family include wife and kids. Your income could be excluded if you show it as separate family. But your moms income will be included.

As natureworx said, there are other ways. Do you want to take that option or not is yours call.

Hi All

;D ;D While you all guys are discussing these issue, hundreds and hundreds of acres are daily exchanging hands near Intl Airport daily. ;D ;D This is just the tip of the iceberg.

If you go thru all the documents on rules and laws available in India, You will wonder how you are alive till now. ;D ;D No wonder with all these monon rules, our population is second in the world. OR has it over taken china. No wonder govt may be fudging the figures. :astonished: :astonished:

Regards

Murali

Thanks for the responses…

The more I read and consult with people it seems like I stand very little to gain and more to loose! I’m seriously considering this as a profession and have set aside a significant amount of my savings to ensure I do this right (setup, infra etc). But I’m now contemplating that this money will be better utilized in a state like TN where such detrimental rules are not prevalent.

The rule as it stands today cannot and does not seem to help the ‘Poor Farmer’. Anyone with IQ in double digits will know that in today’s day and age even the farmers children get educated, go into other professions or acquire properties (non-agricultural) or make investments which would make them ineligible to own agriculture land (2 lakh limit). If these rules were not in place then maybe a farmer would never sell his land as he will be able to bring more developments into the land and also create surplus wealth for acquiring more land. It is clearly a rule that works only for the ones who framed it or the ones who have the clout and muscle/money.

Absolutely disgusting!!

I want a rule that a farmer, his family or joint family or his generations to come will always continue as agriculturists and the Govt. should take away all other properties, assets which are non-agricultural and also bar them from entering other industries or professions.

Sorry for this rant… but it has been very frustrating!!!