• Question on purchase of agricultural property in Mysore, Karnataka

I wish to buy 15-20 acres of agricultural land near Mysore, Karnataka for organic farming. However I'm not an agriculturist and neither my parents/grandparents are so I'm told the law of the land prohibits me from doing so. I do own a pvt ltd company and how feasible is to buy this under the name of the company? Please advice pros and cons. If not what are my options? Prefers advice from Lawyers of the same location or state so that I can engage further.
Asked 8 years ago in Property Law
Religion: Hindu

Ask a question and receive multiple answers in one hour.

Lawyers are available now to answer your questions.

5 Answers

section 79 A prohibits purchase of agricultural land by any person or family who have annual income of more than Rs 25 lakhs from non agricultural sources

2) the amendment empowers deputy commissioners of districts, instead of assistant commissioners, to grant permission for non-agriculturists to purchase agricultural land under Section 80 of the Act.

3)Karnataka Land Revenue Act debars non-agriculturists from purchasing farm land, Section 109 says certain land can be exempted from the provisions of the act for the purposes of industry and horticulture, and for educational institutions, places of worship and housing projects.

Any company wanting to buy farm land has to go through the high-power committee before approaching the cabinet.

Ajay Sethi
Advocate, Mumbai
98518 Answers
8018 Consultations

Hi, It is better you can buy from you individual name. First you have to seek permission from the Deputy Commissioner, once the Deputy Commissioner has given the permission then you can buy an agricultural land.

Pradeep Bharathipura
Advocate, Bangalore
5617 Answers
339 Consultations

The Legislative Assembly passed the Karnataka Land Reforms (Amendment) Bill, 2015, to increase the income limit for non-agricultural sources to purchase farmland from Rs. 2 lakh to Rs. 25 lakh.

The Bill empowers deputy commissioners of districts, instead of assistant commissioners, to grant permission for non-agriculturists to purchase agricultural land under Section 80 of the Act.

A Pvt. Ltd. company CAN CERTAINLY BUY AGRICULTURAL LAND and develop and perform agricultural activities on it, BUT SUBJECT TO the approved provisions of articles and the Memorandum of the pvt.ltd and MUST be approved by the Registrar of Companies (ROC). There is no requirement of any director being an agriculturist. The Articles of the Pvt. Ltd. co. should clearly outline the agricultural activities the Pvt. Ltd. proposes to indulge in.

The collectors’ terms and conditions of constructions on a N.A. Land are totally different.

1. Under the Companies Act, a regd. co. may perform those activities that are listed in the Objects, Articles and the memorandum. By virtue of its objects and articles, as regd. under the companies act, the Pvt. Ltd., (now non-person) can function and perform agricultural activities and need not be a agriculturist as in the case of an individual person.

2. The co. has an object of doing say. Raised Garden or say Horticulture or say Soybean cultivation. The co. after doing the above has to file the yearly land revenue fees, according to the usage of the land. i. e. land revenue is different for agricultural activities and for non-agricultural activities. False declarations and filing will lead to prosecution by the Revenue dept., which has a mandatory duty to periodically inspect and file reports with the district collector’s office.

3. In the future event, if the pvt.ltd. Co. folds-up or say closes down, then it cannot dispose of its agriculture land bank to non-farmers for non-agricultural purposes. The agricultural activities are limited to the existence of the Co. If there is no company, all the property etc… Can be attached by statutory authorities (I. Tax, S. Tax, Revenue Dept., Environment Dept, and Pollution Dept among others).

T Kalaiselvan
Advocate, Vellore
88720 Answers
2409 Consultations

The private company can enter into lease agreement for horticultural or agricultural activities as per provisions of local laws

T Kalaiselvan
Advocate, Vellore
88720 Answers
2409 Consultations

ection 109 of the karnataka and reforms act Act confers power on the State Government to grant exemption in regard to a land in any area from the provisions of Sections 63, 79A, 79B and 80 of the Act to be used for industrial purposes, educational institutions, places of worship, a housing project or horticulture including floriculture or an agro based industry. Further, the Government has also the power even in the absence of such purposes to grant exemption in public interest.

2) Karnataka land reforms Amendment bill 2015 passed by state legislature empowers deputy commissioners in districts to double the area of land that can be acquired by non-agriculturists for industrial, educational, religious, housing and horticulture purposes from the existing 20, 4, 1, 10 and 20 units, respectively.

3) RULE38-D. Application for grant of exemption.—

(1) Every application for exemption under Section 109 shall be made in Form 15-A along with a Court fee of rupees five to the concerned Deputy Commissioner.

2)2) Immediately on receipt of the application the Deputy Commissioner shall cause it to be entered in a separate register maintained for each of the category depending on the extent of land sought to be exempted and the purpose for which exemption is sought. [He shall scrutinize the application in Form 15-A and the documents received from the applicant and fill up Form 15-AA] and after following the procedure specified in Rule 38-B, forward the application to the Government.

Ajay Sethi
Advocate, Mumbai
98518 Answers
8018 Consultations

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer