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santy (lead)     05 April 2015

Agricultural land in karnataka

I have a few queries regarding agricultural land rules in Karnataka. My father is an agriculturist by succession but has a non-agri. income of more than 5L. We have ancestorial agricultural property in my father's name. My queries are as below

1. Can I get the agricultural land by succession if I'm an NRI?

2. Can my father transfer agricultural land as a gift to me ?

3. Can my father buy additional agricultural land anywhere in Karnataka and transfer it to me in due course (Is there a time limit)?

Any replies would be highly appreciated.



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 1 Replies

Krishnapur Ananth Nagamani (Advocate)     18 April 2018

1. Can I get the agricultural land by succession if I'm an NRI?

succession is either testamentary or intestate and governed by Hindu Succession Act, presuming you are a Hindu; There is no disentitlement for reason of being NRI. 

under Karnataka Land Reforms Act, S. 79A(3) bequest or inheritance is exempted from disentitlement of acquiring agricultural land by a person having taxable income in past five consequtive years (Rs 2 laks per year prior to amendment of 2015) Rs 25 laks or more after amendment of 2015.

hence safest and most legal method of acquiring agricultural land in your case is by succession.

sub-section 4 thereof mandates that after aquiring land by succession, within ninety days from the date of acquisition, you have to furnish to the Tahsildar having jurisdiction over the Taluk where the land acquired or the greater part of it is situated a declaration containing the following particulars, namely:—
(i) particulars of all lands;
(ii) the average annual income of himself or the family;
(iii) such other particulars as may be prescribed.

after such enquiry as may be prescribed Tahsildar is required to send a statement containing the prescribed particulars relating to such land to the Deputy Commissioner who shall, by notification, declare that with effect from such date as may be specified in the notification, such land shall stand transferred to and vest in the State Government without further assurance free from all encumbrances. From the date specified in such notification the Deputy Commissioner may take possession of such land in such manner as may be prescribed.

The reason is that the law aforesaid mandates a limit/ceiling on the holding of agricultural land under S. 63 accordingly "The ceiling area for a person who is not a member of a family or who has no family or for a family shall be ten units:
Provided that in the case of a family consisting 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, so however that the ceiling area shall not exceed twenty units in the aggregate."

any excess land will be vested in the government and you will be paid in accordance with S 74.

(i) for the first sum of rupees five thousand or any portion thereof of the net annual income from the land, fifteen times such sum or portion;
(ii) for the next sum of rupees five thousand or any portion thereof of the net annual income from the land, twelve times such sum or portion;
(iii) for the balance of the net annual income from the land, ten times such balance:
Provided that where the land taken over by the State Government is D Class land referred to in Part A of Schedule I, an amount equal to twenty times the net annual income thereof shall be payable. the net annual income from the land shall be deemed to be the amount payable as annual rent in respect of the land as specified in section 8. But where in a land assessed as wet land or dry land, the owner has raised fruit bearing trees, the net annual income of such land shall be determined on the basis of assessment for garden land which could have been levied having regard to the nature of the fruit bearing trees. Where there are wells or other structures of a permanent nature on the land, constructed by the owner then, the value thereof calculated in the prescribed manner shall also be payable. the aggregate amount payable according to the said sub-sections shall not exceed rupees two lakhs.

2. Can my father transfer agricultural land as a gift to me ?

Transfer of agricultural land by your father as a gift is governed by Karnataka Land Reforms Act and Hindu Succession Act; provisions of S. 63 apply even in case of gift; please see reply to first question on ceiling of holdings; under S. 64 of Land Reforms Act, (i) gift made in contemplation of death; and (ii) gift to take effect after the happening of any event are both included in the meaning of bequest; 

Now whether your father can make a gift is governed by S. 74 of K LR Act; no person owning land in excess of the ceiling limit specified in section 63 or 64 shall alienate his holding or any part thereof by way of sale, gift, exchange or otherwise until he has furnished a declaration under section 66 and the extent of land, if any, to be surrendered in respect of that holding has been determined 2[x x x]2 and an order has been passed 2[x x x]2 under section 67, and any alienation made in contravention of this section shall be null and void.

Therefore you have to ensure that the land is within ceiling limit in your father's name before he makes a gift.

The only solace is that the prohibition is not ipso facto as per the Karnataka High Court decision and unless an enquiry and order is passed subsequently the transfer remains valid.

3. Can my father buy additional agricultural land anywhere in Karnataka and transfer it to me in due course (Is there a time limit)?
This question is covered by answers to the first two questions


Read more at: https://www.lawyersclubindia.com/forum/Agricultural-land-in-karnataka-118979.asp


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