Saturday 6 June 2015

RESTRICTIONS ON TRANSFER AND HOLDING OF AGRICULTURAL LANDS


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It is not easy to purchase an agricultural land in Karnataka since a lot of restrictions are imposed on the holder and the / purchaser of agricultural land.  The restrictions, inter alia,  are  that the aggregate  income from  sources other than agriculture,  of the  family intending to purchase  the agricultural land should  be less than 2 lakhs and the purchaser should  be an agriculturist holding agricultural land prior to 1-3-1974.

Low income groups:
In view of the amendment to Section 79-A(1) of the Karnataka Land Reforms  Act, 1961, as amended by KLR (Amendment) Act, 1995 no  person or a family or a joint family, having assured annual income of not less than Rupees two lakhs from sources other than agricultural lands shall be entitled to  acquire an agricultural land whether as a land owner, land lord, tenant or mortgagee with possession or partly in one capacity and partly in another. 

The term “Family”, under this section includes an individual, his or her spouse, their minor sons, unmarried daughters, if any. While, a person or a family or a joint family shall be deemed to have an assured annual income of not less than two lakhs, as envisaged under the said Act, if they had an average annual income of not less than Rupees two lakhs from such sources during a period of five consecutive years preceding such day.

Only for Agriculturists:
Section 79-B of the Act provides that the following persons shall not be entitled to hold an agricultural land:

1. Any person not cultivating land personally.
2.(i) An educational, religious or charitable institution or society or trust other than an institution or society or trust capable of holding property.
(ii)A company 
(iii)An association or other body of individuals not being a joint family, whether corporate or not
(iv)A co-operative society other than a co-operative farm.

Restrictions on Transfer:
No sale, gift or exchange or lease or mortgage with possession of any land, including sales in execution of a decree of a civil court for recovery of arrears shall be done to a person who is not an agriculturist or to a owner or tenant holding lands exceeding the ceiling limit specified in Sec. 63 or 64 or who is not an agricultural labourer or who is not entitled for owning an agricultural land under Section 79-A and B.  However, an order can be obtained from the concerned jurisdictional Assistant Commissioner before transfer of such lands, except in cases where such person is disentitled to acquire or hold land under the provisions of Section 79-A and 79-B.

Transfer of Tenanted Land:
Section 61 of the Act provides that the lands for which occupancy rights have been granted to any person shall not be transferred within fifteen years from the date of grant of Occupancy Rights by way of sale, gift, exchange, mortgage, lease or assignment except a partition among the family members. However, mortgage or charge can be created in favour of the Government, Financial institution, Co-operative  Development Bank, Co-operative society or a company for the purpose of Agricultural Developmental activities. Any transfer or partition of land in violation of the provisions enacted shall be void and such land shall vest with the Government free from all encumbrances.

ceiling Limit:
Section 63 of the Act provides a ceiling limit to hold an agricultural land by a person who is not a member of a family or who has no family, which provides different ceiling limit for different categories:

1. For a person who is not a member of a family or who has no family or for a family, the ceiling limit shall be ten units. However, if a family consists of more than five members, the ceiling area shall be ten units plus an additional extent of two units for every member in excess of five members and the ceiling area shall not exceed twenty units in the aggregate.
2. For a tenant, it shall be forty units.
3. In case of a family, the ceiling area shall be an aggregate of lands held by all the members, which includes “stridhana”.

However, the Act provides for classification of Lands in order to determine the ceiling limit, as detailed hereunder:

1. A Class:  
Lands having facilities for assured irrigation from such Government Canals and Government Tanks as are capable of supplying water for growing two crops of paddy (or one crop of sugarcane) in a year.

2. B Class:  
Lands having facilities for assured irrigation from such Government Canals and Government Tanks as are capable of supplying water for growing only one crop of paddy in a year.

Lands irrigated by such lift irrigation projects constructed and maintained by the State Government as are capable of supplying water for growing two crops of paddy (or one crop sugarcane) in a year.

3. C Class :
Lands irrigated from any Government sources of irrigation, including lift irrigation projects constructed and maintained by Government other than those coming under A Class and B Class.

Lands on which paddy crop can be raised or areca crop is grown with the help of rain water.

Lands irrigated by lifting water from a river or Government Canal or Government tank where the  pumping installation or other device for lifting water is provided and maintained by the land owner.

4. D Class :  
Lands classified as dry but not having any irrigation facilities from a Government source.

A separate formula for determining equivalent extent of different classes  is also prescribed. 

Further, Section 74 provides that a person holding a land in excess to the ceiling limit shall not be permitted to alienate the same by way of sale, gift, exchange, or otherwise without an order of the competent authority upon furnishing a declaration under section 66 and till the determination of the extent of land to be  surrendered.

Exemptions for prohibition of transfer of agricultural lands: (Sec.81)
Apart from the provisions pertaining to restrictions on transfer or holding of agricultural lands by the statute, certain exemptions have been envisaged under the said Act, under various provisions, as discussed below:

1. Transfer of an agricultural land in favour of the Government, Karnataka Housing Board and other independent bodies.
2. Mortgage of any land or interest in favour of Co-Operative Society, financial institutions, Government Company, Corporations or Coffee Board constituted under the Coffee Act, 1942.
3. Plantation lands are exempted from application of Section 64, 79-A, B and 80 of the Act.


Exemptions under Section 109 of Karnataka Land Reforms Act:
Apart from the above, there are certain lands which are exempted from provisions of Sections  63, 79-A, B and 80 of the Act, as detailed below:

1. Industrial Development and Horticulture:
Lands used for industrial development and lands used for the purpose of horticulture including floriculture  and agro based industries which shall not exceed twenty units.
2. Educational institutions:
Educational institutions recognized by State or Central Government, which shall not exceed four units.
3. Places of worship and Housing projects:
Places of worship, specified by the Government by notification [one unit] and housing projects approved by State Government,  shall not exceed ten units.

However, apart from the above stated purpose, the State Government, by notification and subject to provisions of Karnataka Town and Country Planning Act, 1961, may exempt any extent of land for any specific purpose.

Prohibitions against transfer under other Acts:
Karnataka SC/ST (Prohibition of Transfer of Certain Lands) Act, 1978:
The aforesaid Act provides for certain provisions against transfer of agricultural land.   “Granted Land” has been defined as any land granted by the Government  free of cost or upset price to a person belonging to any of the Scheduled Castes or Scheduled tribes or granted to such persons under the relevant law for the time being in force.

Granted Land, as envisaged in the aforesaid Act, cannot be transferred in contravention to the terms and conditions envisaged in the grant order and any such transfer shall be deemed to be null and void. In such a case, the land so transferred shall  revert back to the original Allottee/Grantee/Government .

Under this Act also, the agricultural lands will be granted with the precondition not to alienate for the period of 15 years from the date of order of grant or after the date of commencement of the Karnataka Village Offices Abolition (Amendment) Act, 2003, otherwise than by partition among the members of the Hindu Joint Family.

Thus, transfer of agricultural lands, without prior permission from the competent authority in certain cases will be considered void ab initio.  Hence, it is advised to utilize the services of an advocate having expertise in property matters before purchase of  agricultural lands to avoid protracted litigation.

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