Buying Agricultural Land in India: Who Can Buy and State Limits
Who can buy agricultural land depends on the state; NRIs and OCIs cannot buy farm land anywhere in India but can inherit it.
Written by Vikram Desai
Published 23 October 2026·7 min read
On this page9 sections
Who can buy agricultural land in India depends on the state where the land lies. Maharashtra and Gujarat allow only agriculturists to buy, with exceptions. Himachal Pradesh needs state permission for outsiders, and Karnataka removed its bar in 2020. NRIs and OCIs cannot buy farm land, a plantation or a farmhouse anywhere in India, though they can inherit it.
Key facts
| State or group | Rule for buyers | Law |
|---|---|---|
| Maharashtra | Sale to a non-agriculturist barred without Collector permission; bar lifted for land in municipal limits and planning zones meant for non-farm use | Section 63, Maharashtra Tenancy and Agricultural Lands Act, 1948 |
| Gujarat | Transfer to a non-agriculturist barred, save as the Act provides | Section 63, Gujarat Tenancy and Agricultural Lands Act, 1948 |
| Karnataka | Bar on non-agriculturists removed in 2020 | Karnataka Land Reforms (Amendment) Act, 2020 omitted Sections 79A and 79B |
| Himachal Pradesh | Transfer to a non-agriculturist barred without state permission | Section 118, H.P. Tenancy and Land Reforms Act, 1972 |
| Uttarakhand | Outsiders barred from buying farm and horticulture land in 11 of 13 districts (reported) | 2025 amendment to the state land law |
| Kerala | Ceiling of 12 to 15 acres for a family of 2 to 5 members | Section 82, Kerala Land Reforms Act, 1963 |
| NRIs and OCIs | Cannot buy or take a gift of farm land, plantation or farmhouse; can inherit | FEMA (Non-debt Instruments) Rules, 2019 |
Other states have their own tenancy, ceiling and fragmentation laws. Check the one that applies to your plot before you pay an advance.
Why states restrict farm land purchase
Under the Constitution, “land” is Entry 18 of the State List. It covers rights in land, tenures, and the “transfer and alienation of agricultural land”. So each state writes its own rules.
Farmer-only and resident-only rules
Maharashtra
Section 63 of the Maharashtra Tenancy and Agricultural Lands Act, 1948 bars the sale, gift, exchange or lease of agricultural land to a non-agriculturist without permission from the Collector or an authorised officer. The Act says permission cannot be given for farm use if the buyer’s annual income from other sources is ₹12,000 or more. An agriculturist also cannot buy land that would take their holding above two-thirds of the ceiling area under the state’s 1961 ceiling law.
Maharashtra Act No. 1 of 2016 relaxed the bar for land within municipal corporation or council limits, and for land shown for residential, commercial or industrial use in a regional or town plan. The buyer must put that land to the stated non-farm use within five years of the transfer.
Gujarat
Section 63 of the Gujarat Tenancy and Agricultural Lands Act, 1948 bars transfers of agricultural land to non-agriculturists, save as the Act provides. Buyers usually prove agriculturist status through land records in their name. In November 2024 the state let farmers who lost land to development projects since 1 May 1960 apply to the Collector for a farmer certificate within one year. They must then buy land within three years of getting it.
Karnataka
The Karnataka Land Reforms (Amendment) Act, 2020 omitted Sections 79A and 79B of the principal Act. Those sections had stopped non-agriculturists, and bodies such as companies, from buying farm land. An ordinance of July 2020 had first opened purchase to non-agriculturists, companies, trusts and societies.
Himachal Pradesh
Section 118 of the H.P. Tenancy and Land Reforms Act, 1972 bars transfer of land to a person who is not an agriculturist of the state. Outsiders need prior state permission. District offices direct applicants to apply online through the state’s Emerging Himachal portal.
Uttarakhand
In February 2025 the state cabinet approved a stricter land law. The Hindu reported a ban on outsiders buying agricultural land in 11 districts, with Haridwar and Udham Singh Nagar left out. Reports also describe a 250 sq m cap on residential land for outsiders and an affidavit for each purchase. The amended law excludes areas inside municipal limits.
Ceiling limits
Every state caps how much farm land one person or family may hold. The limit depends on family size and whether the land is irrigated. Kerala’s Section 82 is an example:
| Holder (Kerala) | Ceiling |
|---|---|
| Adult unmarried person or sole surviving family member | 5 standard acres, not less than 6 or more than 7.5 acres |
| Family of 2 to 5 members | 10 standard acres, not less than 12 or more than 15 acres |
| Family of more than 5 members | 1 standard acre more for each extra member, up to 20 acres |
Tamil Nadu reduced its ceiling from 30 to 15 standard acres, according to its land reforms department. Land held above the ceiling can be declared surplus and taken over, so count all land held by your family unit as the state’s law defines it.
NRI and company restrictions
The RBI’s FAQ on immovable property sets out the FEMA (Non-debt Instruments) Rules, 2019:
- An NRI or OCI cannot buy agricultural land, a plantation or a farmhouse, or accept one as a gift.
- An NRI or OCI can inherit such land from a resident, or from a person who acquired it lawfully.
- An NRI or OCI who holds such land can sell or gift it only to a person resident in India.
Our page on NRI property rules covers the flats and plots NRIs can buy. For companies, the answer depends on state law. Karnataka opened purchase to companies in 2020. Elsewhere, read the state’s tenancy law, since a farmer-only rule can shut out a company too.
Checks before buying
- Confirm you are eligible under that state’s law, and keep proof of agriculturist status if the state needs it.
- Pull the record of rights (7/12, khatauni, jamabandi or patta) and match the seller’s name, area and share.
- Read the mutation register for recent changes, pending notices and court cases.
- Check tenure. Restricted-tenure land often needs permission and a premium before sale.
- Check the minimum plot size. Gujarat’s fragmentation law, amended by an ordinance of 14 July 2026, standardised the survey number at 10 guntha (about 0.25 acre) in rural areas, according to reports.
- Check that your total holding stays within the ceiling.
- Get an encumbrance certificate and confirm road access on the village map.
- If you plan to build, check whether conversion to non-agricultural use is allowed in that zone.
Our property legal due diligence checklist lists the documents to collect.
Registration, mutation and conversion
A farm land sale is registered at the sub-registrar’s office like any other sale, with stamp duty on the market value or circle rate. The stamp duty calculator gives an estimate for your state. After registration, apply for mutation so the revenue record shows your name; our guide on land mutation explains the process. To use the land for a house or business, apply for non-agricultural (NA) conversion, which Gujarat handles under Section 65 of its Land Revenue Code, 1879.
State land laws change often and carry many exceptions. A local property lawyer should check your eligibility and the title before you pay.
Frequently asked questions
Can a non-farmer buy agricultural land in India?
It depends on the state. Karnataka allows it after its 2020 amendment. Maharashtra and Gujarat bar it except in listed cases, and Himachal Pradesh needs state permission.
Can an NRI buy agricultural land in India?
No. The FEMA (Non-debt Instruments) Rules, 2019 bar NRIs and OCIs from buying farm land, plantations and farmhouses, but they can inherit them.
Can an NRI sell inherited agricultural land?
Yes, but only to a person resident in India, as the RBI’s FAQ on the NDI Rules sets out.
Can I buy agricultural land in Maharashtra if I am not a farmer?
Not for farming, unless the Collector permits it. The bar does not apply to land in municipal limits or in planning zones marked for non-farm use, which must be used for that purpose within five years.
How much agricultural land can one family own?
It varies by state, family size and land class. In Kerala a family of 2 to 5 members can hold 12 to 15 acres.
Can outsiders buy farm land in Uttarakhand?
Not in 11 of the 13 districts under the 2025 law, according to reports; Haridwar and Udham Singh Nagar are left out.
Sources
- Purchase of immovable property in India (NDI Rules, 2019) — Reserve Bank of India (checked 16 Sep 2026)
- Acquisition and transfer of immovable property in India — Ministry of External Affairs (checked 16 Sep 2026)
- Seventh Schedule, Constitution of India — Ministry of External Affairs (checked 16 Sep 2026)
- Section 63, Maharashtra Tenancy and Agricultural Lands Act, 1948 — Indian Kanoon (checked 16 Sep 2026)
- Amendment to Sections 63 and 63-1A (Maharashtra Act 1 of 2016) — Anevagi & Associates (checked 16 Sep 2026)
- Section 63, Bombay (Gujarat) Tenancy and Agricultural Lands Act, 1948 — Indian Kanoon (checked 16 Sep 2026)
- Farmer certificate decision — Chief Minister’s Office, Gujarat (checked 16 Sep 2026)
- Karnataka Land Reforms (Amendment) Act, 2020 — Department of Parliamentary Affairs and Legislation, Karnataka (checked 16 Sep 2026)
- Karnataka Land Reforms (Amendment) Ordinance, 2020 — Argus Partners (checked 16 Sep 2026)
- Section 118, H.P. Tenancy and Land Reforms Act, 1972 — Indian Kanoon (checked 16 Sep 2026)
- Apply for permission under Section 118 — District Shimla (checked 16 Sep 2026)
- Uttarakhand approves stricter land law — The Hindu (checked 16 Sep 2026)
- Section 82, Kerala Land Reforms Act, 1963 — Indian Kanoon (checked 16 Sep 2026)
- Ceiling amendments — Land Reforms Department, Tamil Nadu (checked 16 Sep 2026)
- Gujarat agricultural land law 2026 — IASExam (checked 16 Sep 2026)
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