Karnataka Land Reforms Act on Property Ownership

By L K Monu Borkala  ·  Real Estate Consultant, OneCity Property  · Published: August 2, 2024  ·  Updated: May 18, 2026

The Karnataka Land Reforms Act 1961 has been amended more times than most people tracking Karnataka property law realise. The most significant amendment came in 2020, when an ordinance dated July 13, 2020 repealed Sections 79A and 79B — the provisions that had, since 1974, restricted non-agriculturists from buying agricultural land in Karnataka. In 2025, a further amendment expanded Deputy Commissioner exemption authority and reduced penalties for non-agricultural use without conversion. In September 2024, the Karnataka Chief Minister announced intent to restore Sections 79A and 79B — an announcement that has not, as of May 2026, resulted in any enacted legislation reinstating those sections.

This guide covers the complete current state of the Act in 2026: what changed, what remains restricted, and what the ongoing political debate means for buyers making current purchase decisions. All data sourced from the Department of Parliamentary Affairs and Legislation, Government of Karnataka, the Karnataka Land Records portal (Bhoomi), and the India Code legislative database.

What the Karnataka Land Reforms Act 1961 Was Designed to Do

The Act had three objectives: distribute surplus agricultural land to landless labourers and tenant farmers; impose a ceiling on landholdings; and prevent non-agriculturists from acquiring agricultural land for speculative purposes rather than productive use.

The tenancy provisions conferred occupancy rights on tenant cultivators farming land for a specified period — resulting in millions of acres being distributed to farmers across Karnataka in the 1970s and 1980s. Section 63 addressed the ceiling objective. Sections 79A, 79B, and 80 addressed speculative accumulation by barring non-agriculturists, companies, trusts, and institutions from holding agricultural land.

These restrictions served a protective purpose when Karnataka agricultural land was affordable and urbanisation limited. By the 2010s, Bangalore's expansion had pushed urban land values into adjacent agricultural zones, creating anomalies where well-located agricultural land could not legally be sold to willing buyers at market prices — while informal transactions through misclassification and false declarations continued. For DC conversion implications: DC Conversion of Agricultural Land in Karnataka 2026.

Sections 79A, 79B, 79C and 80 — The Restrictions Before 2020

Section 79A: Barred any individual or family with annual non-agricultural income exceeding Rs 25 lakh over five consecutive years from acquiring agricultural land. The revenue department could initiate forfeiture proceedings for violations.

Section 79B: Barred companies, trusts, educational institutions, charitable and religious institutions, societies, and co-operative societies from purchasing or holding agricultural land.

Section 79C: Defined penalties for falsely claiming agriculturist status. Revenue officials could investigate and forfeit land acquired through false declarations.

Section 80: Broadly prohibited transfers of agricultural land to any non-agriculturist — reinforcing 79A and 79B at the transfer stage. Enforcement was through the Tahsildar's endorsement: a certificate confirming buyer agriculturist status required at Sub-Registrar registration. Sub-Registrars were obligated to refuse registrations appearing to violate these sections.

The 2020 Amendment — Sections 79A, 79B and 79C Repealed

The Karnataka Land Reforms (Amendment) Ordinance 2020 (Karnataka Ordinance No. 13 of 2020) was promulgated on July 13, 2020 by the BJP government. It was subsequently passed and received assent as the Karnataka Land Reforms (Amendment) Act 2020 on September 28, 2020.

Repeal of Sections 79A, 79B, and 79C: All three sections were repealed entirely. Any Indian citizen — regardless of agriculturist status or non-agricultural income — can now legally purchase agricultural land in Karnataka. Companies, trusts, educational institutions, and all categories previously barred under Section 79B can also purchase.

Ceiling increase — Section 63: The ceiling on agricultural land holding was raised from 10 units to 20 units for an individual without family or with a family of up to four members. For families with more than five members, an additional four units per member is permitted, subject to a maximum of 40 units.

Section 80-A inserted — SC/ST protections: The liberalisation does not affect protections given to Scheduled Caste and Scheduled Tribe communities. Agricultural land held by SC/ST members cannot be transferred to non-SC/ST buyers without government permission under the Karnataka Prevention of Alienation of Certain Lands Act. This protection is absolute and independent of the 79A/79B repeal.

Dismissal of pending cases: Approximately 13,814 pending cases filed under Sections 79A and 79B — involving thousands of acres worth crores of rupees — were dismissed by the amendment. Property owners subject to forfeiture proceedings had their cases dropped entirely.

The 2025 Karnataka Land Reforms Amendment

The Karnataka Land Reforms and Certain Other Law (Amendment) Bill 2025 introduced three further changes:

DC exemption expanded from 0.5 to 4 hectares: Deputy Commissioners were previously authorised to grant exemptions from Sections 63 or 80 for parcels only up to 0.5 hectare. The 2025 amendment expanded this to 4 hectares in all Karnataka districts except Bangalore Rural and Bangalore. DC officers can now directly approve land use changes for projects up to 4 hectares without state government-level approval.

Penalty reduced: The penalty for using agricultural land for non-agricultural purposes without conversion was reduced from three years imprisonment plus Rs 10,000 fine to a civil fine of Rs 1 lakh only. The criminal imprisonment component was removed entirely.

Industrial use without conversion — 2 acres: Up to two acres of agricultural land can be used for establishing new industries without requiring DC conversion, subject to conditions, enabling small-scale industrial development in rural Karnataka.

The 79A/79B Restoration Debate — Current Status May 2026

On August 12, 2024 — the 109th birth anniversary of former Chief Minister D. Devaraj Urs — Chief Minister Siddaramaiah publicly announced intent to restore Sections 79A and 79B. Supporters argue the 2020 repeal enabled speculative accumulation by investors driving agricultural land prices beyond farmer families' reach. Opponents argue the original restrictions were prone to corruption and that the DC conversion process adequately protects agricultural land from non-agricultural use. Historical irony: Siddaramaiah himself during his 2014–2019 Chief Ministership had amended Section 79A to raise the non-agriculturist income limit — a move the BJP criticised as favouring real estate interests. The BJP then repealed the sections entirely in 2020.

As of May 2026: No legislation restoring Sections 79A or 79B has been passed and received the Governor's assent. The 2020 framework remains current law. Monitor this — if enacted, restoration would likely apply prospectively to future purchases. For RERA and regulatory context: Impact of RERA on Property Transactions in Karnataka.

What Remains Restricted — Current Position in 2026

DC Conversion still required: Purchasing agricultural land does not permit non-agricultural use. Karnataka Land Revenue Act 1964 Section 95 requires DC conversion before any construction or commercial activity. Near Bangalore, conversion costs Rs 30–80 lakh per acre — a separate budget item. Full process: DC Conversion of Agricultural Land in Karnataka 2026.

SC/ST protections — Section 80-A: Land held by SC/ST members cannot be transferred to non-SC/ST buyers without prior government permission. Verify seller community status on Bhoomi RTC at landrecords.karnataka.gov.in before any purchase.

Class A irrigated land: Agricultural land irrigated through government dam systems remains restricted to agricultural use regardless of buyer status.

Land ceiling — 20 units: No individual or family can hold above the ceiling (20 units; up to 40 for large families). Purchases taking total holdings above the ceiling are not permissible.

Forest land: Agricultural land also classified as forest remains subject to Forest Conservation Act requirements. See: Role of Karnataka Forest Department in Real Estate Development.

Due Diligence Checklist for Agricultural Land Purchase in Karnataka

Bhoomi RTC: Pull at landrecords.karnataka.gov.in. Confirms owner name, survey number, extent, land classification, and SC/ST status of owner if applicable.

Mutation register: Confirms full title succession history. Any gap in the mutation chain is a title risk requiring investigation before purchase.

EC — 30 years: Pull from kaverionline.karnataka.gov.in. Verifies no mortgages, charges, or prior sale deeds. Full process: Encumbrance Certificate Karnataka: How to Read and Verify It.

Pre-2020 title chain: If any link involves a pre-September 28, 2020 sale to a non-agriculturist, verify the Tahsildar endorsement was obtained. A pre-2020 non-agriculturist purchase without proper endorsement may carry title risk even though forfeiture cases were dismissed. Legal advice recommended.

Full purchase legal checklist: Legal Checklist Before Buying Property in Bangalore 2026.

For inheritance of agricultural land: Inheritance Laws and Property Succession in Karnataka 2026.

For title and RERA verification: How to Check Land Title and RERA Approval for Plots.

For stamp duty on agricultural land: How to Calculate Karnataka Stamp Duty and Registration Fees 2026.

Frequently Asked Questions: Karnataka Land Reforms Act 2026

Can non-agriculturists buy agricultural land in Karnataka in 2026?

Yes. The Karnataka Land Reforms (Amendment) Act 2020 (September 28, 2020) repealed Sections 79A, 79B, and 79C. Any Indian citizen regardless of occupation or non-agricultural income can now legally purchase agricultural land in Karnataka. Companies, trusts, educational institutions, and institutions previously barred under Section 79B can also purchase. The Rs 25 lakh income threshold restriction no longer applies.

What did the 2020 Karnataka Land Reforms Amendment specifically change?

Three key changes: (1) Repealed Sections 79A, 79B, and 79C — removing all non-agriculturist restrictions. (2) Raised the ceiling from 10 to 20 units per individual (up to 40 for large families). (3) Inserted Section 80-A protecting SC/ST community land rights from the liberalisation. Also dismissed approximately 13,814 pending forfeiture cases under the old sections.

Has the Karnataka government restored Sections 79A and 79B after the 2024 announcement?

No. Chief Minister Siddaramaiah announced on August 12, 2024 the intent to restore Sections 79A and 79B. As of May 2026, no legislation enacting this restoration has been passed and received the Governor's assent. The 2020 framework permitting any Indian citizen to buy agricultural land remains current law. If enacted, restoration would likely apply prospectively to future purchases.

Can SC/ST agricultural land be sold to non-SC/ST buyers in Karnataka?

No, without government permission. Section 80-A (inserted by the 2020 amendment) protects SC/ST land rights. Agricultural land held by Scheduled Caste and Scheduled Tribe members cannot be transferred to non-SC/ST buyers without prior permission under the Karnataka Prevention of Alienation of Certain Lands Act. Verify the seller's community status on the Bhoomi RTC before agreeing to any agricultural land purchase.

Does buying agricultural land in Karnataka allow construction?

No, not automatically. The 2020 amendment liberalised who can buy — not what the land can be used for. Building on agricultural land requires DC conversion under Section 95 of the Karnataka Land Revenue Act 1964. Near Bangalore, DC conversion typically costs Rs 30–80 lakh per acre in conversion charges plus several months of processing time. Budget for conversion as a separate line item from the land purchase cost.

How the 2020 Amendment Changed Bangalore's Agricultural Land Market

Before July 13, 2020, the Sub-Registrar's office in any Bangalore peripheral area had a predictable pattern. A buyer — an IT professional, an NRI, or a Bangalore-based investor — who wanted to purchase agricultural land would arrive with a sale deed. The Tahsildar's endorsement confirming the buyer was an agriculturist with non-agricultural income below Rs 25 lakh was required. Without it, the Sub-Registrar could not register the transaction. The result was a parallel market: transactions were registered at suppressed values with false agriculturist declarations, while the actual consideration was paid in cash outside the registered deed. This was not a marginal practice — it was the dominant transactional mechanism for agricultural land near Bangalore's expanding periphery.

The 2020 amendment eliminated the legal basis for this parallel market. Any IT professional, NRI, or institutional buyer can now register agricultural land at the full transaction value without requiring a false agriculturist declaration. The transparency benefit flows directly to the stamp duty register — transactions are now recorded at market values rather than suppressed values. For the government, this means better stamp duty revenue. For buyers, it means registering at fair value without legal risk. For sellers, it means transacting openly rather than through arrangements that required trust in the other party's commitment to pay the unregistered portion.

The market response was immediate in Bangalore's peripheral corridors. Areas like Devanahalli, Doddaballapur, Nelamangala, Kanakapura, Ramanagara, and the Mysore Road belt experienced increased activity in agricultural land transactions immediately following the 2020 amendment, as buyers who had been waiting for legal clarity entered the market. The Devanahalli zone — already driven by the Kempegowda International Airport's expansion and the proposed Aerospace Park — saw particular interest in agricultural land from investors betting on conversion potential.

Who Benefits from the 2020 Amendment — Practical Buyer Scenarios

IT professionals buying agricultural land for future use: The archetypal post-2020 buyer in Karnataka's agricultural land market is the Bangalore IT professional — typically with a family income above the old Rs 25 lakh threshold — who wants to buy agricultural land on Bangalore's periphery for a future farmhouse, hobby farm, or retirement home. This buyer was categorically excluded from the market before July 2020. Today, this buyer can transact freely, register at the full price, and then separately pursue DC conversion when they are ready to build. The separation of the purchase and the conversion into two distinct processes — rather than requiring both to be navigated simultaneously — has made the transaction significantly more accessible.

NRI buyers of agricultural land: NRIs — Non-Resident Indians — can purchase agricultural land in Karnataka under the post-2020 framework provided they are Indian citizens. NRIs of Indian origin who are not Indian citizens (Persons of Indian Origin or Overseas Citizens of India) are subject to FEMA restrictions on agricultural land purchase and should obtain RBI guidance before transacting. For Indian citizen NRIs, the post-2020 amendment removed the agriculturist status barrier — their non-agricultural foreign income no longer disqualifies them. The practical transaction requires the NRI to execute through a Power of Attorney holder in India. Registration at the Sub-Registrar occurs through the POA holder with the original deed sent to the NRI for execution. For NRI property rights more broadly: NRI Buying Property in Bangalore 2026: FEMA, RERA and Kaveri 2.0 Guide.

Agro-industrial investors and companies: The 2020 amendment opened Karnataka's agricultural land market to companies, trusts, and institutional investors. An agro-processing company, a solar energy developer, or an educational institution can now directly acquire agricultural land without routing it through a trust with an agriculturist trustee or other workarounds. Companies can hold up to the 20-unit ceiling (raised from 10 units) before the holding limit is reached. This institutional access to Karnataka's agricultural land market has implications for agro-industrial development, renewable energy projects (particularly solar farms in the Chitradurga-Bellary belt), and educational campuses in peri-urban areas.

Tenancy Provisions — Still in Force in 2026

The 2020 amendment focused on the purchaser eligibility restrictions of Sections 79A and 79B. It did not affect the tenancy provisions of the Karnataka Land Reforms Act — the provisions under Chapter II of the Act that conferred occupancy rights on tenant cultivators. These provisions remain in full force in 2026 and are directly relevant to buyers of agricultural land where tenant farmers are in possession.

Under the Karnataka Land Reforms Act, a person who was a tenant of agricultural land on March 1, 1974 (the vesting date) and had been cultivating it for a continuous period acquired deemed occupancy rights in that land. Millions of tenant cultivators across Karnataka were granted such rights, and their Saguvali Chits (grant certificates under Form No. VII) or subsequent mutation entries in Bhoomi records document these rights. A buyer who purchases agricultural land where a tenant has occupancy rights is purchasing subject to those rights — the tenant's occupancy cannot be extinguished by the private sale of the land above them.

Buyers of agricultural land must therefore verify: (1) whether any tenant is in possession or has previously established occupancy rights; (2) whether the Saguvali Chit, if any, was for the same survey number being purchased; and (3) whether the Bhoomi mutation records show any tenant entry that might indicate outstanding occupancy rights. A clean title in agricultural land requires not just the seller's title chain but also confirmation that no tenant rights were acquired in the property during the post-1974 tenure period.

Land Ceiling — How the 20-Unit System Works in Practice

The ceiling on agricultural land holding under the Karnataka Land Reforms Act uses a "unit" system rather than a simple acreage limit. One "unit" is not a fixed number of acres — it varies based on the quality and irrigation category of the land. The Act defines different types of agricultural land (irrigated, dry, garden land) and assigns unit values to each, reflecting the productivity differential between land types. A hectare of intensively irrigated land counts for more units than a hectare of dry rainfed land.

The 2020 amendment raised the ceiling from 10 units to 20 units for individuals and from lower amounts for families. For families with more than five members, an additional four units per excess member is permitted, subject to a maximum of 40 units. These ceiling limits apply to the aggregate holdings of the individual and their family — not just to a single parcel. A buyer who already holds 18 units of agricultural land across various Karnataka districts cannot purchase an additional plot that would push their aggregate above 20 units without violating the ceiling provisions.

Before any substantial agricultural land purchase in Karnataka, the buyer should prepare an honest accounting of their current agricultural land holdings and their unit equivalents to confirm the proposed purchase does not breach the ceiling. The ceiling enforcement mechanism involves inquiry by the Assistant Commissioner if a complaint is filed — and competitors, neighbours, or disgruntled parties can trigger such inquiries.

Agricultural Land Near Bangalore — Key Investment Corridors in 2026

Now that any Indian citizen can legally purchase agricultural land in Karnataka, the question of where to buy has become more important than the question of whether it is legally permissible to buy. The corridors generating the most buyer interest for agricultural land near Bangalore in 2026 are driven by specific infrastructure triggers:

Devanahalli corridor (NH-44): The Kempegowda International Airport's second runway expansion, the proposed BIAL Aerospace Park, and the Devanahalli Business Park have driven sustained demand for agricultural land in this zone for over a decade. Agricultural plots within five kilometres of the airport road command premium prices that reflect conversion potential. Buyers typically purchase agricultural land here with a multi-year horizon — holding through DC conversion and then either developing or selling converted plots. The Bhoomi Hastha land pooling scheme has also activated certain agricultural land parcels for township development.

Kanakapura and Ramanagara corridors (NH-48 extension): The proposed metro extension toward Kanakapura, combined with improved highway connectivity and the Cauvery riverfront appeal, has made this south Bangalore corridor attractive for agricultural land buyers seeking a natural setting at affordable prices. Agricultural land prices here remain significantly below Devanahalli levels, making it accessible for buyers with smaller budgets who want a long-term land bank position.

Mysore Road belt (SH-17 to NH-275): The Mysore-Bangalore Expressway (NH-275) completion has made Bangalore-to-Mysore transit predictable and sub-90-minute. Agricultural land along this corridor — particularly near Bidadi, Ramanagara, and Channapatna — has attracted buyers who see the express highway as the kind of infrastructure event that historically precedes agricultural-to-residential conversion cycles. Early buyers of agricultural land near the Dobbaspet and Nelamangala zones on the NH-4 (now NH-48) corridor in the 2000s saw significant appreciation when those zones were eventually converted and developed.

For buyers evaluating investment in BDA-approved layouts versus raw agricultural land near these corridors: Advantages of Investing in BDA-Approved Plots in Bangalore Under Rs 50 Lakhs. For plot investment near upcoming infrastructure: Plots Near Upcoming Metro Stations in Bangalore 2026.

Summary — Key Points for Buyers in 2026

The Karnataka Land Reforms Act 1961 as it stands in May 2026 is materially more permissive than in any previous period of Karnataka's independent history. The 2020 amendment fundamentally changed who can own agricultural land in Karnataka. The 2025 amendment made the conversion pathway more accessible. The political debate about restoration of restrictions is real and ongoing — but has not yet produced enacted law.

For a buyer making a decision today: the legal framework is clear, the documents required are well-established, the DC conversion path exists and has defined costs, and the title verification process (EC, RTC, mutation, FMB sketch) is standardised. The residual risks are the SC/ST restriction (verifiable on Bhoomi), the pre-2020 title chain (verifiable through EC), and the ceiling compliance (calculable from existing holdings). None of these risks is hidden — all are verifiable with the right documentation review before committing to purchase.

For the complete step-by-step property verification framework: Legal Checklist Before Buying Property in Bangalore 2026.