We are planning to commence Corporate Farming business in Andhra Pradesh by acquiring agricultural lands from individual farmers and conducting agricultural activities on the lands. In this regard, when referred the Andhra Pradesh Land Reforms Act, we observed that a company can hold agricultural lands only in the range of 15 - 54 acres depending on its type i.e. single/double crop wet land or dry land. However, we would like to acquire lands in huge acres, for say, 200 acres. Can we acquire the same by seeking permission from Andhra Pradesh Government ? Or, is there any other possible way to acquire such huge lands ? Please help!
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Yes,Definitely.
You purchase land by four entities instead of single entity.
Please form four to five entities with different board of directors to buy 200 to 300 acre agricultural land.
This way you may overdo ceiling Act prohibiting you to buy 200 acres agricultural land.
You would need state govt permission to acquire 200 acres of land for purpose of corporate farming
Dear Sir/Madam,
It is suggested that for acquiring the land more than the ceiling decided by the Govt. you need the special permission from the concerned authority of the Govt. Here, one thing is to be considered that if you are buying the land from the farmers, then the ceiling laws will be applicable. However, if you take the land from the farmers on lease, the said ceiling laws may be bye-passed. So, you may adopt the needed strategies as per your wish and benefits.
The land laws differ in every state.
Therefore if in a particular state there is a ceiling on maximum holding of land without exception then you can not help.
In such cases you will have to look for other states.
You can make agreement with local farmers to produce crops of your choice so you procure the produce from them.
You need to form a co-operative society and acquire lands 15-54 acres depending upon its type, on individual members of the family or members of co-operative society.
Yes u have to take permission from govt
1. ONLY an original Agriculturist can purchase agricultural land, anywhere in India. For other persons or legal entities, proper permission has to be taken from the district collector.
2. Visit the following link, for more INFO into the matter:
https://www.lawyersclubindia.com/forum/Re-Can-Pvt-Ltd-Company-in-Maharashtra-buy-Agricultural-land-15364.asp
(2) The ceiling area in the case of a family unit consisting of more than five members shall be an extent of land equal to one standard holding plus an additional extent of one-fifth of one standard holding for every such member in excess of five, so however that the ceiling area shall not exceed two standard holdings.
(3) The ceiling area in the case of every individual who is not a member of a family unit, and in the case of any other person shall be an extent of land equal to one standard holding.
Explanation:- In the case of a family unit, the ceiling area shall be applied to the aggregate of the lands held by all the members of the family unit.
[4A. Increase of ceiling area in certain cases:- Notwithstanding anything in Section 4, where an individual or an individual who is a member of a family unit, has one or more major sons and any such major son either by himself or together with other members of the family unit of which he is a member, holds no land or holds an extent of land less than the ceiling area, then, the ceiling area, in the case of the said individual or the family unit of which the said individual is a member computed in accordance with Section 4, shall be increased in respect of each such major son by an extent of land equal to the ceiling area applicable to such major son or the family unit of which he is a member, or as the case may be, by the extent of land by which the land held by such major son or the family unit of which he is a member falls short of the ceiling area.]
Provided that-
(i) in the case of any double crop wet land falling under sub-clause (i) of Clause (d) of Section 3, covered by Part II of Schedule C appended to the draft rules referred to in that sub-clause for the irrigation of lands in the Godavari Western, Eastern and Central deltas, the extent of standard holding shall be increased by twelve and a half per centum;
[(ii) in the case of any double crop wet land irrigated solely by a private tube well, the extent of standard holding shall be increased by twenty-five per centum, so however, that the said extent shall in no case exceed 7.28 hectares (18 acres).]
(iii) in the case of any wet land irrigated by a Government source of irrigation classified as Class V in the settlement or revenue accounts of the Government, excluding a source fed by a project, river, nala or channel in the Andhra Area; and in the case of wet land irrigated by similar source notified by the Government in this behalf in the Telangana area, the extent of standard holding shall be increased by sixteen and one-fourth per centum;
(iv) in the case of any dry land situated in any area declared by the Government by notification to be a drought-prone area, the extent of standard holding shall be increased:-
(a) by twelve and a half per centum, in the case of any dry land falling under Class G or Class H of the Table below; and
(b) by twenty per centum in the case of any dry land falling under Class I, Class J or Class K of the said Table;
(v) in the case of any land in the Telangana area situated in any tract in respect of which the settlement operations were conducted by an agency other than the Government, if the land falls within Class A, Class B, Class C, Class D or Class E of the Table below the ceiling area shall be computed as if the land fell within Class B, Class C, Class D, Class E or Class F of the said Table respectively and if the land falls within Class G, Class H, Class I or Class J, the ceiling area shall be computed as if such land fell within Class H, Class I, Class J or Class K respectively;
[(vi) in the case of any lanka or padugai land, or any land on which a coconut garden, a guava garden or a grape garden is raised, the extent of standard holding shall in no case exceed 10.93 hectares (27 acres)].
TABLE
Class of Land
Extent of Standard holding
1
2
Wet
Double crop wet land a Hectares
Wet land other than double crop wet land b Hectares
Wet:
Class A
...4.05 (10 acres)
6.07
(15 acres)
Class B
...4.86 (12 acres)
7.28
(18 acres)
Class C
...5.46 (13.5 acres)
8.09
(20 acres)
Class D
...6.07 (15 acres)
9.11
(22.5 acres)
Class E
...6.68 (16.5 acres)
10.12
(25 acres)
Class F
...7.21 (18 acres)
10.93
(27 acres)
Dry:
Class G
...
14.16 (35 acres)
Class H
...
16.19 (40 acres)
Class I
...
18.21 (45 acres)
Class J
...
20.23 (50 acres)
Class K
...
21.85 (54 acres)
(2) In computing the holding of a person or family unit consisting of lands of different classes, the relative proportion of the extent of land of each such Class to the extent of a standard holding of the appropriate Class shall be taken into account in the manner prescribed and the aggregate of all such proportions shall be deemed to be the holding of the person or the family unit in relation to the ceiling area.
(3) In computing the holding of an individual who is not a member of a family unit, but is a member of a joint family the share of such an individual in the lands held by the joint family shall be taken into account and aggregated with the lands, if any, held by him separately and for this purpose such share shall be deemed to be the extent of land which would be allotted to such individual had there been a partition of the lands held by the joint family.
(4) In computing the holdings of the member of family unit who is a member of a joint family, the share of such member in the land held by the joint family shall be taken into account aggregated with the lands, if any, held by him separately and for this purpose, such share shall be deemed to be the extent of land which would be allotted to such member, had there been a partition of the lands held by the joint family.
(5) Where an individual or a member of the family unit is a member of a Co-operative society, company or firm the share of such individual or of a family unit in the land held by such Co-operative society, company or firm shall be also included in the holding of the individual or member of the family unit, as the case may be, and for this purpose the share of land so held shall be deemed to be the extent of the land which would have been allotted to him on a winding up of the Co-operative society or company or dissolution of the firm.
(6) Lands owned or held under a private trust shall-
(a) in a case where the trust is revocable by the author of the trust, be deemed to be held by such author or his successor-in-interest; and
(b) in other cases, be deemed to be held by the beneficiaries of the trust in proportion to their respective interests in such trust, or the income derived therefrom.
Explanation:- Where a trust is partly private and partly public, this sub-section shall apply only to lands covered by that part of the assets of the trust which is relatable to the private trust.
Company can acquire one standard holding. To hold more land. It should be partnership firm and each partner hold one standard holding in his individual name.
Do not transfer the land in the firm.
Seek for the permission from the Andhra Govt.
- Yes, You can purchase 200 acres agriculture land with the permission of Collector.
You have gone through the land reforms rules in this regard and are aware of the rules in this regard.
The Land and Revenue department functioning under the nose of District collector in all the districts of Andhra Pradesh have proper information about land ceilings and other revenue details of the purchase and other formalities, or even the government revenue department's website may provide you the desired information.
1. There is ceiling limit for holding of agriculture land by a company ranging from 15 to 54 acres as per section 5 of Andhra Pradesh land reforms (ceiling of agricultural holding) act 1973.
2. You can purchase 200 acres of land and convert it to non agricultural land because there is no limit for holding of non agricultural land.
No limit is prescribed under AP Land Reforms Law in respect of agricultural land held by a company.
No the ceiling limits have to be respected. The government cannot waive off the law. Although you can form a partnership with various people having shares and then carrying on.
