Transfer of Agricultural Land in Karnataka: Legal Framework

Agricultural Land in Karnataka

In Karnataka, the transfer of agricultural land is governed by a comprehensive set of rules and regulations, with the Karnataka Land Reforms Act 1961 as the cornerstone. This primary legislation regulates the ownership and transfer of agricultural land, along with other relevant laws such as the Karnataka Land Revenue Act 1964. These laws are of paramount importance, aimed at preserving the state's agricultural resources, supporting farmers, and preventing urban encroachment.

This article explains the key provisions of Karnataka's agricultural land transfer laws, including who can own agricultural land, transferring land, and the restrictions imposed to protect agricultural lands from misuse.

Eligibility to Purchase Agricultural Land in Karnataka

 One key aspect of the Karnataka Land Reforms Act of 1961 is that it restricts who can purchase agricultural land in the state. Initially, only agriculturists were permitted to buy agricultural land. However, the legal market has evolved with recent amendments that have eased these restrictions, allowing a broader range of people, including non-agriculturists, to buy agricultural land.

• Before 2020: Non-agriculturists and individuals with non-agricultural income exceeding INR 25 lakh were prohibited from purchasing agricultural land.

• After the 2020 Amendment, the restriction based on non-agricultural income has been removed, allowing a broader range of people, including non-agriculturists, to buy agricultural land.

Agricultural Land Ownership Ceiling in Karnataka

To prevent the concentration of large tracts of land in the hands of a few individuals or  corporations, the Karnataka Land Reforms Act imposes a landholding ceiling:

• For individual ownership: A person can own up to 10 agricultural land units.
• For family units: Families can own a maximum of 20 land units. The unit size

depends on the land type, such as irrigated or dry land. Exceeding these limits requires specific exemptions or permissions from the government.

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Process of Transferring Farm Land in Karnataka

 The transfer of agricultural land can occur through sale, inheritance, gift, or exchange. The following steps outline the general process of transferring agrarian land in Karnataka:

Verification of Land Title

Before transferring ownership, it's essential to verify the title of the land through the RTC (Record of Rights, Tenancy and Crops) document, which establishes ownership rights of land.

Execution of Sale Deed

Once both parties agree on the sale, the sale deed is executed, detailing the transfer of ownership. This document must be legally drafted and include all relevant details, such as the buyer, seller, land description, and terms of sale.

Stamp Duty and Registration

The sale deed must be registered with the Sub-Registrar's Office. Stamp duty and registration fees are calculated based on the property's market value. The current stamp duty rate for agricultural land in Karnataka is 5% of the transaction value, and registration fees are 1%.

Mutation of Land Records

After registration, the mutation process is initiated to update the land records in the new owner's name. The mutation request was made at the Tehsildar's Office, and the RTC document has been updated accordingly. This process involves applying along with the necessary documents, and it may take a few weeks for the updated RTC to be issued. 

Conversion of Agricultural Land (if applicable)

Suppose the purchaser intends to use the agricultural land for non-agricultural purposes. In that case, they must apply for land conversion with the Deputy Commissioner under the Karnataka Land Revenue Act, 1964. Only converted land can be used for residential, commercial, or industrial purposes.

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Restrictions on Transfer of Agricultural Land

 Despite the recent relaxation of some restrictions, specific rules still apply to protect the agricultural character of the land:

Transfer to Non-Agriculturists

While the 2020 amendments have made it easier for non-agriculturists to purchase agricultural land, some restrictions still exist in specific cases. For example, transferring land to entities or individuals with plans to convert it into non-agricultural land requires government approval.

Prohibition on Sale of Granted Lands

Agricultural land granted to marginalized communities such as Scheduled Castes (SC) and Scheduled Tribes (ST) under government schemes cannot be transferred for a certain period (usually 15 years from the date of the grant). This restriction is in place to prevent these communities exploitation and ensure that the land is used for the intended purpose. If the land is transferred illegally within this period, it is subject to government reclamation. 

Section 79A and 79B of Karnataka Land Reforms Act

 While these sections, which limited who could own agricultural land, were removed in 2020, guidelines still regulate agricultural land transactions to prevent speculative investments and ensure land is used for farming.

Agricultural Land for Industrial and Commercial Use In Karnataka

The government allows certain exemptions to purchase agricultural land for non- agricultural purposes to support industrial and infrastructure development. These exemptions include land acquisition for industries or infrastructure projects like highways and factories with permission from the government. Special Economic Zones (SEZs) and industrial parks are examples where land acquisition laws override the restrictions on agricultural land ownership.

• Industrial Development: Land may be acquired for industries or infrastructure projects like highways and factories with explicit permission from the government. Special Economic Zones (SEZs) and industrial parks are examples where the government's land acquisition laws override the restrictions on agricultural land ownership, demonstrating the authority's involvement in the process.

• Commercial Farming: Corporate entities and individuals may acquire agrarian land for specific types of commercial farming (e.g., horticulture, floriculture), provided they follow the necessary procedures and obtain government approval.

If you want to know more about property buying, selling or investing   

call at:    76768 70876          

Email:    onecityproperty.com@gmail.com  

Address   :    1st floor, Parvathamma Complex, LIG, 6th Main Rd, 1st Stage, Stage 1, KHB Colony, Basaveshwar Nagar, Bengaluru, Karnataka 560079  

Inheritance of Agricultural Land in Karnataka

In Karnataka, legal heirs can inherit agricultural land according to personal laws applicable to the deceased landowner. The Hindu Succession Act of 1956 governs the inheritance of land by Hindus, and similar rules apply to other communities.

• Intestate Succession: Without a will, the land is distributed among the legal heirs. Under Hindu law, agricultural land is treated as ancestral property distributed among sons, daughters, and other legal heirs.

• Testamentary Succession: If the landowner leaves behind a will, the transfer of agricultural land occurs according to the terms of the will, subject to legal limitations on the division of ancestral property.

Conclusion

The transfer of agricultural land in Karnataka is a regulated process governed by laws that ensure the protection of farm resources while allowing for land ownership flexibility. Recent amendments have relaxed some of the more stringent restrictions on land ownership by non-agriculturists. However, the framework remains focused on preventing land misuse and speculative real estate investments. Landowners and potential buyers must understand these legal requirements to ensure compliance and avoid legal disputes.

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