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Mehul (pro)     27 January 2012

How builders buy agricultural land

Hi,

 

I would like to know that how does builders buy agricultural land, and then convert to N.A and sale the plots.

Do builders show that they are having agricultural land some where when they buy agricultural land.

or they first ask the owners to convert it to N.A or is there other workaround for it.

 



Learning

 6 Replies

manoj joshi (advocate LEGAL ADVISOR AT IDBI BANK)     27 January 2012

dear friend

accoring to your quary there r so many aspects to buy a agricultural land

as u said u want to develop it and sell it  again,  u ve to 1st convert it in to 143 i.e.non agricultural land by giving some special reasons 

its also mendatory to take permission from state where u wnat to but such land

regd.

manoj joshi

advocate

9927822660

niranjan (civil practice)     27 January 2012

Usually, builders enter into agreement to sell N.A.plots with the agriculturist,then they make him to apply to conversion of land into non-agr.and then purchase NA plots as per the agreement.

Mehul (pro)     28 January 2012

hi,

thanks manoj and niranjan for your promt reply.

 

can you tell me what will be the procedure of converting farm land into N.A and what will be the charges for it.

Tajobsindia (Senior Partner )     28 January 2012

@ Author


For prospective builders it will not be possible for them to register a site on unconverted land unless it comes within limits and is regularized by State scheme. Even if it is possible for a builder to somehow get it registered, the builder will find it difficult to procure bank loans and or FDI’s as the case may be. The stack of houses itself can be constructed with local Panchayat approval.

 

The documents required for title scrutiny are R.T.C., parent deeds, Mutation certificate, layout plan, contracts between builder and land owner, relevant family tree, tax paid receipt, encumbrance certificate, site visit by Commissioner etc. Further, in my opinion in some States there is no need to convert the land before putting it to use for non agricultural purpose9s); check the same within local limits! For the same assistance of a local Advocate is a must to sail one through local laws. Also note as FEMA restricts NRI’s/ PIO’s from purchasing farm lands, the builder will be able to sell bits of lands only to Indian residents. If the land is in a State in India where conversion is required, the builder can convert the same and sell it to NRI’s also. Alternatively, a builder can get the land exempted from the purview of the Land Reforms Act (S. 109). The third option is conversion from agricultural to non agricultural use. Sale of plots as farm land is possible in some States. These are very general opinion and the requirements will vary from case to case based on setting eye on a particular State and as per interest of querist and fees structure are also different in each State. All these are possible for a high end – networking mover - shaker person(s).



This is how in nutshell builders get agriculture land at cheap rates and then convert / develop them into housing schemes and or commercial properties schemes and seek general public interest into buy and sell resorts to plots and or villas to flats and or commercial complex thus which gets developed there. 
 

Bharatkumar (ADVOCATE )     28 January 2012

U contact for N.A at Collector Office or District Development Officer for that otherwise u contact Talati / Tahsildar / Mamlatdar or any person who is know about  lision work .

niranjan (civil practice)     29 January 2012

For converting land into N .A.,there is a provision under the LaND rEVENUE cODE of your State and for payment of charges,depends on the Govt.policy.


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