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).