Historical Background: The Karnataka Land Reforms Act, 1961
The Karnataka Land Reforms Act, 1961 was enacted to protect agricultural land from concentration in the hands of non-farmers and real estate speculators. Under this legislation, only persons who were agriculturists — those whose primary income was derived from personally cultivating land — were permitted to purchase agricultural land in Karnataka.
The Act imposed ceilings on landholdings and made it illegal for non-agriculturists to acquire agricultural land. This applied to individuals, companies, and trusts alike. Violating these provisions could result in the land being vested with the government and the transaction being declared null and void.
The 2020 Amendment: What Changed and What Didn't
In 2020, the Karnataka government amended the Land Reforms Act to remove the restriction that only agriculturists could buy agricultural land. This reform was positioned to attract investment and enable farmers to sell their land more easily. Post-amendment, any Indian citizen can purchase agricultural land in Karnataka.
However, the amendment comes with critical caveats. The land must still be used for agricultural purposes — converting it to residential or commercial use requires separate approvals from revenue authorities. Companies and foreign nationals remain restricted from purchasing agricultural land. The amendment did not change land conversion laws, meaning buying agricultural land for a farmhouse or villa project still requires formal conversion approval under the Karnataka Land Revenue Act.
Land Conversion: Section 95 of the Karnataka Land Revenue Act
Even after purchasing agricultural land, converting it to non-agricultural use is a separate legal requirement under Section 95 of the Karnataka Land Revenue Act. The application for conversion must be filed before the Assistant Commissioner of the concerned taluk. The conversion order specifies the permitted use — residential, commercial, or industrial — and is granted only after scrutiny of the master plan, survey records, and local planning authority approvals.
Buyers who purchase agricultural land without obtaining conversion orders before building or developing it risk having their constructions classified as unauthorized. Local planning bodies such as BDA, BBMP, or town panchayats will not issue building plan approvals on unconverted land. This is a common pitfall for buyers tempted by lower prices on agricultural plots advertised as farmhouses near Bangalore.
Key Documents to Verify Before Purchase
Before committing to any agricultural land purchase, buyers must verify the RTC (Record of Rights, Tenancy and Crops), also known as the Pahani, which confirms the land's current agricultural status and ownership. The mutation register (Forms 9, 11, 12) shows the history of ownership changes. An Encumbrance Certificate from the Sub-Registrar's office confirms whether any loans, mortgages, or legal disputes are attached to the land.
If the land is in a converted layout, the DC conversion order must be checked for its validity, expiry date, and permitted land use. Buyers should also confirm that the land does not fall within a forest boundary, a tank bed (kere), government gomal (grazing land), or within buffer zones of a national highway or railway, as such land carries additional legal restrictions beyond the Land Reforms Act.
Risks of Buying Agricultural Land for Real Estate Purposes
Many buyers around Bangalore have fallen into schemes where agricultural land is sold at low prices with informal promises that conversion will happen later. Builders and layout developers sometimes sell sites in unconverted agricultural land, calling them "farmhouse plots" or "eco-living sites." These transactions carry serious legal risk — the buyer may not be able to register the property as a residential plot, obtain a Khata, or secure a home loan against it.
If revenue authorities find that agricultural land was used for non-agricultural purposes without conversion, they can initiate proceedings to cancel the sale deed and reclaim the land. Karnataka courts have upheld these powers in multiple cases. Buyers must insist on seeing the DC conversion order before signing any sale agreement for land that appears agricultural in nature.
✅ Key Takeaways
🔗 Official Portal: rera.karnataka.gov.in
📅 Published: September 13, 2026 | This blog is a public awareness initiative. Verify all information with official sources before making financial decisions.
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