Hi, I am from a non-agriculturist family with annual income of less that 25 lakhs. What are my options for acquiring agriculture land for starting a horticulture farm along with my friend? 1) Does it make sense to approach the DC to get the permission? or 2) Is it better to set up a LLP between the two of us (my friend and I) and then try and buy the land? Also, I would like to know the approximate timeframe for land purchase with regards to the two options mentioned above. I would really appreciate any feedback! Thanks in advance!
1. Under Indian Revenue laws, an "Non-Agriculturist" is NOT allowed to buy agricultural land, BUT can take it on Lease /Rent, for the given purposes.
2. Visit the following link for more info:
https://www.lawyersclubindia.com/forum/Re-Can-Pvt-Ltd-Company-in-Maharashtra-buy-Agricultural-land-15364.asp
Non resident Indians cannot buy agricultural land in India
2) Though RBI has given general permission to the NRIs to purchaseimmovable properties in India, the permission does not grant power to acquire any and every property in India. The NRIs are allowed to purchase only residential or commercial property. So NRIs cannot purchase any agricultural land or plantation property.
3) if you are resident Indian you can approach DC for permission to purchase agricultural land
I am currently an NRI, but planning to return back to India very shorty and eventually plan on buying agricultural land as already mentioned above. I would really apprecite it if you could weigh-in on the options available when I return back to India permanently. Thank you!
After you settle down in India permanently you can purchase agricultural land in your name after obtaining prior permission from DC
2) don’t purchase agricultural land with your friend
1. See you can approach DC and can seek necessary approval for agricultural and related activities you may get permission to purchase the land.
Approaching by yourself in my view would be better option.
It may take some time depending upon the department and DC take to scrutinize and pass your file.
See as far as your NRI status is concerned presently being NRI you cannot purchase the agricultural land.
For NRI can buy agriculture for 60 months. Better you can go for LLP and then purchase agriculture land with proper terms and conditions of the partnership firm. Within 6 months time frame you can setup all things in line.
Any individual with less than 25lacs annual income can purchase agri. land. Income declaration will submit and no permission require.
NRI cannot occupy agriculture land. Come to India, resume resident status by residign182 days or more in India. Than can purchase.
1. You can buy non-reserved category "free hold lands) (means non SC /ST /OBC lands), by putting proper proposal before the district collector and obtaining permission for every separate piece of land that you intend to buy. IT is a long elaborate procedures and spans nearly a year to obtain permission.
You will not be eligible to buy the agricultural land if you are a NRI.
If you are resident then you can go ahead with the purchase of agricultural land provided your annual income is less than Rs. 25 lakhs.
If you want to buy the property under a llp then it is your choice, you can work out the modalities of LLP with your partner.
For buying agricultural; property you do not have to get DC permission but for conversion you may need his approval as per Karnataka land reforms act.
As per law, a NRI cannot buy agricultural landed property anywhere in India, hence you may be prepared mentally for that situation too.
You may return to India but you are to be a resident to become eligible for buying agricultural land.
There are few criteria for purchasing land in Karnataka. You need to be an agriculturist and annual income should be within 25lakhs.
1. Ordinarily a Non-Agriculturist can not buy agricultural properties in Karnataka.
2. Any deviation from the set rule is hardly allowed by the Authority.
3. The best option is to make an agriculturist buy the land and become partner of your firm investing is land as his share in the firm.
1. Get the said agricultural property bought by your Agriculturist friend and then make him a partner of your firm.
2. The said firm can conduct its horticulturist activities as per law.
1. Yes you can approach District collector for permission to purchase agricultural land in Karnataka.
2. But you cannot purchase agriculture land in Karnataka as NRI.
3. You can also setup LLp with some Indian friend who have background of agriculture family so that purchase of land would be easy for you.
Dear Sir,
Agricultural land can be bought in Karnataka after fulfilling certain requirements.
These include:
The annual average income of the person including agricultural income should be less than Rs 25 lakhs.
The person must have had an agricultural land in his name before the year 1974. The person should be an agriculturist or an agricultural worker by profession.
As per Section 79A of the Karnataka Land Reforms Act 1961, the non-agricultural income of a purchaser who must be an agriculturist should not exceed Rs 25 lakhs per year. Sale of land granted to members of scheduled caste and tribe is not allowed. Also, sale of land granted by the government is not allowed for a period of 15 years. Agricultural land can be used only for agricultural purposes and no other purposes. Utilising agricultural land for any other purpose is prohibited by law. Agricultural land, which does not come under the Green Belt, can be converted for non-agricultural purposes like residential, commercial, industrial etc, subject to the approval of the Special Deputy Commissioner on payment of the prescribe
NRI can't buy agricultural land in India
