Can company purchase agricultural land


Hi,

I have a client who has agricultural properties in the name of his family members. He wants to pool them and create a company.

 

My question is can a private limited company buy agricultural land?

 
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Chief Manager(Law)

Each state has Land reforms Act. You have to specify the state in which the company proposes to purchase Agricultural Lands and for what purpose. If it is for Horticulture, fluroculture or plantation crops then some states permit with certain restrictions . If it is for real estate purpose, then first the land use is required to be changed form agriculture to non agriculture - Residential or Industrial use, only then the company can purchase the land.

 
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Dear Amit jee....

Every state has their own law related to purchase of agri land .... So after knowing the State better advice can be delivered.....

 
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ADVOCATE AND CORPORAE ADVISOR

dear sir

 

               The company can purchase the agricultural land provided the Articles permit such a purchase. The land also can be registered in the name of the company only. 

                Pre-incorporation contract can be entered into for purchase of land from the sellers by way of agreement to sell and say clearly that sale deed shall be executed in future in the name of the proposed private limited company. 

                If you have any such an intention, better you apply for name availability and proceed for obtaining the name availability communication from the ROC . Further precaultions also need to be taken before purchase of property by a corporate body.

               you can give me specific details to advise you better

 

                    cs dr vedula gopinath

                        advocate high court   vgnath@gmail.com

 
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