Buying Agricultural Land

Rajshree Jhawar (Querist) 30 May 2011 This query is : Resolved
This is urgent. My cliet wants to get into agriculture(actually growing crops). Now i would like to know whether:
1] A pvt. ltd. company/partnership firm/ LLP is allowed to buy land for agriculture. Does it need to take permission for the same. If so before or after incorporation or registration of the company/LLP/firm respectively. Will it make any difference if the promoters/partners already own agricultural land.
2] If yes is there any maximum limit prescribed regarding the size of the land.
Awaiting an urgent reply.
Thanking you
Rajshree

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G.Sundara Rajan (Expert) 30 May 2011
(1) Yes, a pvt........... is allowed to buy land for agriculture. Partnership firm need not be registered but can be registered, others have to be registered mandatorily. It wont make any difference to the individual properties of the promoters/partners, as the land would stand in the pvt.....firm's name.

(2) There is no maximum limit.

Shashikant V. Patil (Expert) 31 May 2011
Dear Rajshree,
You have not mentioned the state you located and where you wanted to buy a agricultural property. Because in the state of Maharashtra, it is barred to purchased a agricultural land by the non-agriculturalist. And there is provision to purchase agricultural land only for bonafied industrial use.

Rajshree Jhawar (Querist) 01 June 2011
Dear Mr. Shashikant,
At the outset thanks for your valuable advice.Now i want to further elaborate my query. i am located in Maharashtra and my client wants to buy land here. As mentioned in my earlier query my clients are agriculturists in their individual capacities.But they want to buy land and grow crops either as a firm/llp/pvt ltd co. Hence the query whether these legal entities are allowed to buy agricultural land. If yes what is the procedure. If no what is the way out. When u say for bonafide industrial use what does it mean? What and from whom are permissions to be taken and when?

Shashikant V. Patil (Expert) 01 June 2011
Dear Rajsshree,

OK. If your client is agriculturist, and if he purchase in individual capacity, then there is no restriction to purchase Class I land. If at all your client wants to purchase Class II land (New tenure) land either in individual or firm or Co.'s capacity , then permission from competent revenue authority is required. You may refer BT & AL Act 1948 for details. Bonafied industrial use is also explained in the same Act.