Introduction to how to buy agricultural land in Tamil Nadu: Agriculture in Tamil Nadu is one of the most important sectors in the state’s economy. About 70% of the state’s population is engaged in agricultural activities as it is a major source of livelihood in Tamil Nadu. Agriculture is the largest source of livelihood in Tamil Nadu. More than two-thirds of rural households in the state still rely mainly on agriculture for their livelihood, with 93% of farmers being small and backward.
Tamil Nadu occupies an area of 1.3 lakh sq km for planting, with a total area of about 63 lakh hectares. The primary responsibility of the Tamil Nadu government is to enable stability in the agricultural sector and increase sustainability in the state’s agricultural production. This is done to meet the growing population in the food sector as well as the demands of the department of raw materials in the agro-industries.
There are no restrictions if you are planning to invest in agricultural land in Tamil Nadu. A maximum of 59.95 acres of agricultural land can be purchased. By the order of the district collector, the land can be converted into non-agricultural land if no agricultural activity has been done during the last ten years. Agriculture is still a major source of livelihood for rural people. To increase the income of farmers, the productive capacity of agricultural land has to be increased. You have to take care of some legal and technical issues when you decide to buy agricultural land in Tamil Nadu.
A guide and steps on how to buy agricultural land in Tamil Nadu, restriction, process, documents to buy agricultural land in Tamil Nadu, and the cost of agriculture land in Tamil Nadu
Types of agricultural land classification in Tamil Nadu
Generally, the land is classified as wetland (‘Nanjai’) or dryland (‘Punjai’) in Tamil Nadu. Agriculture classification is mainly referred to as the Patta (revenue record that specifies the owner of a particular land) for the underlying land. If you decide to use the land for some kind of commercial use after a while, we recommend that you go in and buy dry land as you will not need very strict approval to convert the land. Because the process of changing wetlands is very complicated. You cannot convert fertile agricultural irrigated land into residential land, you can use them only for agricultural purposes.
Can NRI buy agricultural land in Tamil Nadu?
1) In Tamil Nadu, NRIs cannot buy agricultural or any kind of farmland or orchard
2) In Tamil Nadu, there is no restriction on the purchase of any agricultural land by a resident Indian. The Land Reforms Act mainly states that a family of five can own a maximum of about 15 standard acres of agricultural land. For each member of the family, an additional 5 acres of land is allowed, but all together cannot exceed a maximum of about 30 standard acres.
3) If any private company buys large acres of agricultural land in Tamil Nadu obtain permission from the State Government under Section 37 (A) of the Tamil Nadu Land Reforms Act, 1961 before proceeding with the purchase. No such land acquired by a company may be transferred by sale, mortgage, gift, or lease without the prior permission of the State Government.
The purchase of agricultural land is subject to certain rules, such as “special permission from the government is required to purchase wetlands or drylands benefiting from irrigation schemes.”
Restrictions on buying agricultural land in Tamil Nadu
In Tamil Nadu, there is no restriction on the purchase of any agricultural land. Anyone can buy agricultural land. However, the maximum land area is 59.95 acres which can be purchased. Buying agricultural land in Tamil Nadu can be a good decision because agricultural land in Tamil Nadu is very cheap and agriculture in India is tax-free. But unlike other states, Tamil Nadu does not have to be a farmer to buy agricultural land.
- For buying agricultural land, you must be a farmer.
- If you or your forefathers are not farmers, you must show that you have agricultural land in other states to buy.
- All you have to do to buy agricultural land in Tamil Nadu is to be a citizen of India. However, PIO’s and NRI’s cannot buy agricultural land.
In comparison, there are no restrictions on the sale and purchase of agricultural land in the state of Tamil Nadu, however, there is a limit on the acquisition of agricultural land. As a result, there is a limit to the number of acres of land that can be owned and possessed by anyone. It also varies for different categories in the following ways;
Individual or family – We need to know how the family was defined under the Land Reforms or Ceiling on fixation of land Act 1961. It has been defined as follows;
- A family belonging to a person means the wife or husband of that person and his.
- Minor sons or unmarried daughters
- And, minor grandsons and granddaughters in the male line whose mother or father is dead
In the case of agricultural land occupied by a family of 5 members, the limit is 15 standard acres (previously 30 standard acres). For a family of more than 5 members, each additional member can have 5 standard acres of land. However, there is a total land holding limit of 30 standard acres.
If one of the women in the family or an individual woman is given agricultural land as a gift of Stridhan land, then such an individual or family can become the owner of an additional 10 standard acres.
Companies – In the industrial or commercial companies undertaking business can own up to 15 standard acres of land. In other words, if companies want to set up industries or commercial establishments on agricultural land, they are allowed to own up to 15 standard acres of such land.
Public Trusts – Public trusts are further divided into religious trusts, charitable trusts, hospitals, and educational institutions. There are no restrictions on religious trusts acquiring agricultural land. However, a charitable trust can own up to 5 standard acres of agricultural land, while hospitals and educational institutions can own up to a certain amount of agricultural land as per their rules or regulations as per the law. Earlier, no one was allowed to have maximum agricultural land but now according to the amendment made in 2008, it is allowed to have maximum agricultural land with the permission of the government.
The cost of agricultural land in Tamil Nadu
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The cost of agricultural land in Tamil Nadu is approximately 20 lakhs to 1 crore and it will change depending on several factors. Below factors can be divided into a few categories;
- Accessibility and land use
- Physical attributes
- Price in surrounding and nearby area
- Market Value and property price
Other factors affecting the cost include proximity to other attractions or desired areas, scarcity, present, and future land use, access to economic activities, area amenities, type and proximity of neighboring houses to the property, neighborhood round parcel type and size, zoning, future development potential. As an important natural resource, the land becomes an object of competition in the agricultural land market.
Documents required to buy agricultural land in Tamil Nadu
It is important to check and ensure the property is completely legal, and that all paperwork is accurate, given how often unsuspecting buyers people are duped.
Encumbrance Certificate (EC) – Certificate confirms that the property is free from financial and legal liabilities. This is one of the most important documents for obtaining property loans from banks. It contains all the details of the property transaction and will help you get the right one. The Encumbrance Certificate should be purchased by the buyer.
Legal scrutiny report – The buyer should obtain a legal report from an advocate who specializes in the real estate sector. If the buyer takes out a loan to prepare the property, a lawyer attached to the lending bank will inspect the property. However, to ensure that the property is free of legal obligations, it is advisable to seek legal opinion as an individual.
Tax paid receipts – There are two types of taxes: revenue tax for land and house tax/property tax for houses and apartments. Revenue tax is paid to the Revenue Department and house tax/property tax is paid to Greater Chennai Corporation (GCC).
Checklist Layout / Plot Types When Buying Plots In Chennai, there are two types of layout/plots – approved and unapproved. A group of plots is usually called a sequence. The process is then approved by the Layout Authority, while unapproved layouts are only irregular pieces of land. It is not advisable to buy an unapproved plot, as it can be very risky. The layout may not have adequate infrastructure for future construction. The buyer cannot get a water connection or electricity connection from the local authorities as the plot is not approved.
Patta – This is a legal document obtained from the Tehsildar’s office in the name of the original owner of the land. Claiming land ownership is an important record. To proceed with any transaction related to the land in question, a Patta document is required.
The address contains the following details;
Name of the District, Taluk, and Village
Name of the owner
Survey number and subdivision
Is it a Wetland or a Dryland?
Area of the land and tax details
Once the property is registered, the Patta will automatically be transferred to the new owner.
Agriculture land under different crops in Tamil Nadu
Different types of horticultural crops are grown in Tamil Nadu and these are classified into different categories like fruits, vegetables, spices, and condiments, planting crops, flowers and herbs, and aromatic plants.
The main fruit crops are Banana, Mango, Citrus, Grapes, Guava, Sapota, Papaya, and Pineapple. Krishnagiri, Dindigul, Thirunelveli, Vellore, Theni, Erode, Trichy, Thiruvallur, Dharmapuri, and Madurai are fruit crops are grown in 2,93,146 hectares of land.
Tapioca, Onion, Tomato, Potato, Brinjal, Bhendi, Drumstick, Beans, and Carrot in an area of 2,26,502 Ha are some vegetables grown mainly in districts like Namakkal, Salem, Dharmapuri, Trichy, Thiruppur, Dindigul, Krishnagiri, Perambalur, Erode, Villupuram, Nilgiris, and Theni Districts.
The main spices and condiments cultivated in an area of 1,45,559 hectares are Chillies, Turmeric, Tamarind, Coriander, Pepper, Cardamom, and Cloves in districts like Ramnad, Thoothukudi, Erode, Salem, Virudhunagar, Dindigul, Dharmapuri, and Sivagangai Districts.
Some crops like Tea, Coffee, Rubber, and Cashew are grown in an area of about 2,32,988 hectares which are grown in districts like Nilgiris, Ariyalur, Cuddalore, Kanyakumari, Dindigul, Coimbatore, Pudukottai, and Salem.
In addition to traditional flowers such as Jasmine, Crossandra, Tuberose, and Chrysanthemum, cut flowers like Rose, Carnations, and Gerbera are also being produced in the state. The cut flower industry is growing day by day due to its high export potential. These flowers are grown in areas like Madurai, Tirunelveli, Dindigul, Dharmapuri, Krishnagiri, Vellore, and Thiruvannamalai under an area of 25,309 hectares of land.
Gloriosa, Senna, Coleus, Lemon-grass, and Periwinkle are some medicinal and aromatic crops grown on an area of 11,230 hectares. These crops are grown in some places like Virudhunagar, Dindigul, Thiruvallur, Ariyalur, Madurai, Thiruvarur, Dharmapuri, Salem, Nagapattinam, and Trichy. Horticulture farmers are provided with modern and advanced technology through various schemes to improve the productivity of almost all horticultural crops.
Some important legal tips for buying agricultural land in Tamil Nadu
The title deed of a land plot – It confirms the name of the seller of the title of the property and also confirms whether the seller has full right to sell the property. The original present deed and previous deeds should be examined by a lawyer to confirm that the seller has not allowed access to others through this land. If the agricultural land is owned by more than one person, a certificate of release must be obtained from the other participants before the documents can be registered.
Agreement for sale – A written agreement is made about the cost, advance payment, and the actual sale time after all the documents have been verified. The agreement was prepared by a lawyer and signed by the parties and two witnesses. Then, it is mentioned that the contract to sell the document is a prelude to the sale deed. According to the terms and conditions established in this document, future agreements are likely to proceed. It is important to set the terms and carefully understand each clause to fully understand its implications.
Stamp duty on land – Stamp duty varies from state to state and it is a government tax. The stamp duty paid will be mainly considered a legal document and submitted to the court as evidence.
Registration of the land – It is the process by which a copy of a document is recorded and the title to the immovable property is transferred to the registrar’s office in the name of the buyer. According to the Indian Registration Act, 1908, the deed must be registered in the office of the Sub-Registrar within four months from the date of execution of the document. The document should provide details such as the original title deed, past deeds, house tax receipts, and two witnesses for property registration.
Conveyance deed of sale deed of the land – A conveyance deed is a document that transfers the title of the property from the seller to the buyer. This will help you find the owner of the property, where the property is located, and details such as site measurements, boundary details, etc.
Tax Receipts and Bills – The buyer check the latest property tax bills and ask them at the municipal offices. The buyer ensures that notices for the property are not pending. Also, water, electricity are other bills must be updated.
Encumbrance certificate (EC) – An Encumbrance certificate for the last 13 or 30 years can be obtained from the office of the Sub-Registrar, to ensure that there are no legal duties or grievances on the ground.
Land Measurement – A recognized surveyor can ensure that the measurement of the plot and its boundaries is accurate and as indicated in the title certificate.
Changing the title of the land in the village office – All legal procedures for purchasing the property are completed, only if the name of the new owner is included in the records of the village office. An application can be made to the village office along with a copy of the registered deed.
Important factors when buying land in Tamil Nadu
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Verify the owner carefully
Before finalizing the deal, check the details of the owner so that you are not deceived. The following are the documents confirming ownership of the land.
1. The Patta passbook,
2. Title Deed of Property
3. Register “A”
4. EC (Incubation Certificate)
The above documents will enable the legal expert to decide whether it is right to buy the property.
Points you should consider when buying agricultural land
Below are some points you should consider when buying agricultural land in India;
Verify the owner carefully – Before finalizing the deal, you must carefully verify that the person selling the land is the actual owner. The title deed of the property, Pattadar Pass Book, and the 1B register confirm the name of the owner and also confirm whether he has full right to sell the property. Also, have a lawyer check all previous actions to make sure there are no land disputes or multiple landowners.
Check land classification – Many land categories fall into the category of prohibited purchases. Know the land laws all over India. Also, the land you want to buy is free of all these restrictions. Under no circumstances should you consider investing in state-owned land, forest land, or government-allocated landless poor.
Agreement or sales deed – After confirming all the documents, get a detailed salesdeed with full details of the land, its boundaries, and the owner’s name and address. Your agreement must be made by a lawyer, signed by both parties, and signed by two witnesses.
Stamp duty and land registration – Stamp duty is government taxes that vary from state to state. Stamp duty must be paid on your land as it is a legal document and can be used as evidence in court. You must also register your land in the owner’s name within four months of the date of purchase. You need to attach the original sales deed, the previous deed if any, tax receipt as documents, and two witnesses must be present at the time of registration.
Mutation – Within 90 days from the date of registration of the mutation, an application must be sent to the Tehsildar in form 6A for mutation in the land records. You should also seek Pattadar Pass Book and title deed from him.
Survey of land – Get the land surveyed by a recognized surveyor to ensure that the measurement of the plot and its boundaries are listed in the title certificate.
Obtain copies of land records and tax receipts – You should get land tax receipts and certified copies of the land listed in the Adangal and A register as a legal purchase of land.
Entry in Pahani / Adangal
- You should also enter your land details in Pahani / Adangal.
- Get tax receipts and copies of land records.
- Get the latest Land Tax Receipts and certified copies of Pahani / Adangal and 1B Register for legal proof of purchase.
Buying land from an NRI owner – You can also buy land from an NRI owner. However, there must be a third party to allow the sale of land. For buying agricultural land in Tamil Nadu from NRI owners, look at their Power of Attorney signed by the Indian Embassy in their province. As mentioned earlier, if you are an NRI / PIO, you are not allowed to buy agricultural land in Tamil Nadu.
Land Purchase Scheme
This scheme was used to improve the lands of the Schedule Castes and enhance their socio-economic status in the state.
Subsidy – A maximum of 30% of the project cost of Rs. 2.25 lakhs whichever is less can be released as a subsidy to each family. The cost of land should be fixed according to the government guidelines. The subsidy issue is the front-end subsidy.
- Applicants will be Scheduled Caste Women.
- Applied applicants must be between 18 to 65 years of age.
- The annual family income for the applicant should not exceed about Rs. 1.00 lakhs.
- Make sure, the applicant should not have any agricultural land.
- The applicant’s occupation should be agriculture.
- Applicants and their family members may not have received any subsidy so far.
- Applicants must choose the land to be purchased themselves.
- Lands will have to be purchased from landowners who do not belong to the Scheduled Caste.
- Land purchased will be registered in the name of the applicant only.
- The land purchased will not be sold within twenty years.
- The applicant in whose name the land is registered can carry out land development activities alone.
- Land development activities for borewell drilling, open wells, and electrification of pump sets will be carried out based on NABARD scheme guidelines.
- A feasibility certificate will be obtained from a geologist for digging an open well/borewell.
- Applicants and family members should not sell or transfer their land to others in the last 5 years.
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