Who can buy agricultural land
Rules on buying agricultural land are made by each state and change over time. Some states limit purchases to agriculturists or to residents of the state; others have relaxed these conditions. Confirm the current rule for the state and district with a local lawyer before paying any advance.
NRIs and OCIs cannot purchase agricultural land, plantation property or farmhouses, according to the RBI. They can inherit such property.
| Buyer | Can buy agricultural land or a farmhouse? |
|---|---|
| Resident Indian citizen | Depends on the state’s law and your eligibility |
| NRI or OCI | No, except through inheritance |
| Company, trust or firm | Depends on the state; often restricted |
Source: RBI FAQ: purchase of immovable property by NRIs and OCIs (updated 6 April 2023) ↗
Permission to use the land for a farmhouse
Using agricultural land for a home generally needs permission from the state. In Rajasthan, Section 90A of the Land Revenue Act prohibits non-agricultural use without written permission, and the conversion is a formal process with its own charges. Other states have similar non-agricultural permission processes.
Farmhouses are often allowed on agricultural land within limits on built-up area and use. Find out the limits that apply, and whether the land falls in a zone of the master plan where a farmhouse is permitted.
Source: Government of India services portal: 90A land conversion in Rajasthan ↗
Access, water and power
Check that the land has legal road access, not just a track across a neighbour’s field. Ask about water — a borewell may need permission, and groundwater rules vary — and whether the electricity connection is agricultural or domestic, since the two are charged differently.
- Legal access recorded in the revenue map
- Water source and any permission needed
- Type of electricity connection
- Boundary demarcation by the revenue department
- Any government acquisition or road project affecting the land
Title and revenue records
Agricultural land often has many co-owners through inheritance. Every recorded owner must join the sale. Check mutation entries, any partition, and encumbrances, and have a lawyer trace the title back through earlier transfers.