Monday 28 October 2013

Purchase of Agricultural Land

Purchase of Agricultural Land

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Purchase of agricultural Iand Involves compliance of vanous statutes, in addition to the regular acts like transfer of property, registration acts, stamp acts, Indian contract act. There are various restrictions on sale / purchase of agricultural land, which are imposed in Karnataka Land Reforms Act 1961, Karnataka Land Grant Rules 1969. Karnataka Village Officers Abolition Act 1961, Karnataka Land Revenue Act 1961, BDA Act 1976 and Land Acquisition Act (Central) 1976.
These restrictions on purchase / sale of agricultural land are applicable only in Karnataka, and many ther states do not have such restrictions. We shall first understand the words agricultural land, agriculture, agricultural labour and agriculturalist. The word Agriculture encompases aquaculture (fishery), horticulture, raising of crops, grass, garden products, dairy farming, poultry farming, breeding oflive stock (animal husbandry) grazing. 

Any land which is used and capable of being used for any of above purpose is an agricultural land. Agricultural land does not include house sites or land used exclusively for non-agricuItural purpose. Verification ofrevenue records is necessary to ascertain whether the land is agricultural land or not.
A person who cultivates land personally, that by himself or by the members of his family or by hired labourers / servants under his personal supervision or of his family member, is an agriculturist. Wages to the servants / laboures should not be in the form of share in the crops, but may be paid in the form kind or cash.
A person who lives mainly on the earnings out of manual labour on agricultural land including the one who prepares agricultural implements is an agricultural labourer. 

Karnataka land reforms act 1961 has put certain ceilings on agricultural land holdings per family / per person. Family includes, the indivi dual, wife or wives, minor sons and unmarried daughters. The ceiling is Ten units. If the family comprises more than five members, an additional two units per every member in excess offive is allowed subject to maximum 20 units. In case of tennant, it is 40 units.
The area of unit differs with the class of the land. Land is classified in to 4 classes based on irrigation facilities. Land having assured irrigated facilities from government canal, government tanks by which two crops of paddy or one crop of sugarcane can be cultivated in a year is A class lands. 1.3 acres of A class land is one unit. Lands with assured irrigation from government canal, government tank by which only one crop of paddy can be cultivated or lands irrigated by lift irrigation project of state government by which two crops of paddy or on crop of sugarcane can be cultivated in a year is 'B' class land. 2.5 acres of 'B' class land is one unit.

                Lands irrigated from government sources of irrigation including lift irrigation, but not A or B type, rainfed lands where paddy or areca is grown, or lands irrigated by lifting the water from govt. cannal, govt. tanks but the pumping installation is provided by the land owner is 'C' class land. 3 acres of 'C' class land comprises one unit. Lands classified as dry but not having irrigation facilities from govt. source is 'D' class lands. 5.4 acres of "D" class lands is one unit. Holding the agricultural land beyond the ceiling limit is not allowed. Likewise disposing of land held in excess of ceiling limit is also not allowed unless declarations are filed which are referred to land tribunals. Apart from the ceiling on holding the agriculturist the Karnataka Land Reform Act 1961 has put certain restrictions on the purchaser. 

As per section 79 A of Karnataka Land Reforms Act 1961, any person or family or joint family having income pot less than Rs. 2 lakhs per year from non-agricultural source is not eligible to acquire any agricultural land in any capacity as landlord, Further any person other than one cultivating the land personally is not eligible to hold agricultural land (See 79B). One should be an agriculturist before 1-3-1974. Likewise sale of agricultural land, including the sale in execution of a decree of a civil court, or for recovery of arrears of land revenue, gift, exchange, lease is not lawful to a person who is not an agriculturalist or agricultural labourer or to a person, who holds the land in excess of ceiling limits (See 80). Karnataka Land Grant Rules 1969 deals with agricultural lands granted by the government. The grantee is not allowed to sell the land for a period of 15 years from the date of taking possession of the land. Thereafter only with the permission of the government, such lands could be sold.

In case of lands granted to the members of the scheduled castes and scheduled tribes, the alienation of the land is totally prohibited and if alienated the ownership revert back to the government. Usage of the agricultural lands for any purpose other than agriculture is not allowed unless it is converted for non-agricultural purpose with the permission of the government and also on payment of prescribed fee.
In case of lands, where occupancy has been granted by the tribunal under Karnataka Land Reforms Act 1961, sale of such land is not allowed for a period of 15 years from the date of the certificate of occupancy.
Likewise restrictions on alienation of agricultural land exist in case of i nam lands, agricultural lands conferred under the provisions of Karnataka Village Officers Act, 1961, land under notification of Land Acquisition Act, BDA Act. Karnataka Land Reforms Act 1961 has exempted certain lands from the provisions of sections 63, 79A, 79B and 80, where the land is used for: 


The purchaser should thouroughly examine the various aspects and avail the services of an advocate well versed in property matters particularly agricultural land. If the purchaser is not an agriculturalist, it is advisable to insist on conversion of land to non-agricultural purpose, before purchase.



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