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15 Must Know Criteria for Purchasing Agricultural Plot in Maharashtra6 Things to look for while buying agricultural land in Maharashtra
Investing in agricultural land in Maharashtra can be a lucrative venture, but it also involves certain complexities and legal considerations. You must be well-informed and diligent to ensure a successful purchase and minimize potential issues. This article will explore six critical factors you should thoroughly assess before buying agricultural land in Maharashtra.
Understanding the Risk of Disputed Land
Purchasing disputed land can lead to lengthy legal battles and financial losses. Before finalizing any deal, conduct a thorough title search and consult legal experts to ensure the land is free from disputes or litigation. Protect yourself from potential headaches by choosing land with a clear and undisputed ownership history.
Know the Different Laws for Buying Agricultural Land in India
India has diverse regulations regarding the purchase of agricultural land, with specific nuances varying from state to state. In Maharashtra and Karnataka, only registered farmers are allowed to buy agricultural land. Non-compliance with this rule can result in severe consequences, including forfeiture of the land. Familiarize yourself with the local laws and eligibility criteria to make a well-informed decision.
Verify the Land's Marketable Title
When buying agricultural land, remember that you are not purchasing it for residential purposes. Marketable title ensures the seller has undisputed ownership rights and can legally transfer the property.
Understand the Conversion Process for Residential Use
If you plan to use agricultural land for residential purposes, be prepared for additional procedures. The conversion process involves obtaining relevant permissions and adhering to specific guidelines set by local authorities. Present a well-structured proposal and state your reasons for the change to expedite the process.
Obtain NOC from the Township to Avoid Legal Trouble
Before making any changes or utilizing agricultural land for different purposes, you must obtain a No Objection Certificate (NOC) from the township. This certificate ensures that your plans are in accordance with local zoning regulations and that the authorities have no objections to your intended use of the land.
Use Agricultural Property for Agricultural Purposes to avoid legal hassles
The process of converting agricultural land can be time-consuming and filled with bureaucratic hurdles. Verify the seller's credibility and the land's records to minimize potential risks and ensure a smooth transition.
FAQs
- Can I buy agricultural land in Maharashtra for non-agricultural purposes?
No, Maharashtra's laws stipulate that only registered farmers can purchase agricultural land for agricultural purposes. Using the land for non-agricultural purposes can lead to serious consequences, including losing the land.
- How can I verify the marketable title of the land I wish to buy?
To verify the marketable title, engage the services of a title agency or a legal expert who can conduct a thorough title search. Additionally, consider obtaining title insurance for added protection.
- What is the importance of obtaining a NOC from the township?
Obtaining a NOC is crucial as it confirms that your proposed land use complies with local zoning regulations and has no objections from the authorities.
- Can I convert agricultural land to residential use in Maharashtra?
Yes, converting agricultural land to residential use in Maharashtra is possible, but the process involves obtaining the necessary permissions and presenting a compelling proposal.
- What are the potential risks of purchasing disputed land?
Buying disputed land can lead to prolonged legal battles and financial losses.
- Why should I use agricultural land for its intended purpose?
Using agricultural land for its original purpose reduces complexities and unwanted risks associated with the conversion process. Verifying the seller's credentials and the land records is advisable to ensure a smooth transaction.
Purchasing agricultural land in Maharashtra can be rewarding, but it requires careful consideration and adherence to legal regulations. You can secure a successful acquisition by avoiding disputed land, understanding state laws, verifying marketable titles, and complying with the conversion process. Remember to obtain NOCs when necessary and use the land for its intended purpose to reduce potential hassles. By partnering with Genuine Plots, you can avoid the pitfalls of buying disputed land, navigate state laws' complexities, and confidently verify marketable titles
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What is Bhunaksha in Maharashtra in Indian Land Records.jpeg)
What does the term Vahivat mean?
Vahivat (or Vahiwat) means possession, use, or management of land. It refers to someone who controls and uses a piece of land, even if they are not the legal owner.
How is Vahivat different from ownership?
Vahivat Ownership
Actual use/possession, Legal title in records
May manage or cultivate land. Has full legal rights to transfer, sell, or mortgage
Not always permanent or official. Officially recognised and documented
A person can have vahivat of land without being its registered owner.
Who is a Vahivatdar?
A vahivatdar is the person who physically controls the land, manages, or cultivates it
- May collect profits/produce
- May lease or administer the property
They are users or managers of the land, not necessarily owners.
Is Vahivat recorded in government documents?
Yes.In cases where ownership is unclear or disputed, revenue officials sometimes record the possessor’s name under:
- “Jungle Vahivat” – for forest or uncultivated land
- “Vahivatdar” column – for land under someone’s management or possession
This acknowledges de facto (actual) possession, even if ownership is not settled.
Does Vahivat give legal ownership rights?
No, vahivat alone does not give ownership.
However, long-term, continuous possession may be used in court for claims like adverse possession.
Can Vahivat affect land disputes?
Yes. Vahivat becomes important in cases related to:
- boundary disputes
- Inheritance of land in possession
- long-standing agricultural use
- claims on unused or government land
- establishing common public access routes
Courts often examine who had actual possession for how long.
What is a “Vahivat Road”?
A vahivat road is a path or road used by people for many years—
even if it passes through private land.
Long-term public use can make it recognised as a public right-of-way.
Can a Vahivatdar sell the land?
Generally, no, unless they also have legal ownership.
A Vahivatdar may:
- ✔ use the land
- ✔ manage it
- ✔ lease it (in some cases)
But cannot legally sell, mortgage, or transfer without proper title.
Why does Vahivat still matter today?
It matters for:
- Old revenue records
- rural land usage patterns
- boundary clarification
- disputes over long-term possession
- determining public access routes
- historical occupancy rights
Many villages still use the terms in everyday land-related discussions.
Why are Vahivat maps becoming an issue?
Because authorities are modernising land records.
Old vahivat-based maps often lack legal clarity.
This is why departments (like in Pune district) are cancelling old vahivat surveys and demanding proper re-measurement.
1. Understand the Land Category
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Before investing in land, identify the type of land you're buying.
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Types of Land include in Karnataka are residential plots and agricultural plots.
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Converted land refers to agricultural land that has been legally converted for residential/commercial use.
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Revenue sites: usually hazardous, without approvals.
What You MUST Check
-
Check that land use fits your purpose.
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Ask for a DC Conversion certificate for non-agricultural use.
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Avoid unconverted or illegally converted land.
2. Ownership and Title Details Verification
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Essential Ownership Checks
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Obtain the Mother Deed/Title Deed.
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Verify chain of ownership for 20–30 years.
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Confirm whether the property is jointly owned.
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Obtain signatures from all owners/co-owners on the sale agreement.
Warning signs
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The original title deed cannot be produced by the seller.
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Disputes between family members.
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Abrupt ownership changes just before the sale.
3. Check Legal Clearances & Documents
-
Encumbrance certificate
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Khata Certificate / Khata Extract
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Tax Receipts
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Sale Agreement draft
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Verify Layout Approvals
-
Ensure layout is approved by:
-
BDA: Bangalore Development Authority
-
BBMP / Municipal Corporation
-
Gram Panchayat with proper document
Avoid
Unapproved layouts, plots without official survey numbers and plots based only on notarised documents.
4. Check Encumbrances & Liabilities
What to Check
-
The outstanding bank loans on the land.
-
Cases filed in the courts or pending disputes.
-
Legal claims by relatives or tenants.
-
How to Check
-
Obtain the EC from the Sub-Registrar Office.
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Check online on the Karnataka land records portal.
5. Understand the Location & Infrastructure
Site-Level Checks
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Ensure the plot has legal road access.
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Match plot boundaries with survey sketch.
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Ensure road width as promised.
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Look for drainage, sewage and electric poles.
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Locality Factors
-
Close to schools, markets, and hospitals.
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Water availability: Groundwater levels vary in Karnataka.
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Distance from highways and growth zones.
-
Avoid Plots Near
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Lakes or lake buffer zone (highly protected).
-
Forest areas or government lands.
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High-tension electrical lines.
6. Confirm Market Value & Pricing
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Compare with the prices of surrounding properties.
-
Check the government guidance value or stamp duty value.
-
Understand the future development plans for the area.
Be Cautious Of
-
Very low-cost plots - often illegal.
-
Pressure sales (“book today or price will increase”).
7. Registration & After-Purchase Formalities
-
Get the sale deed registered at the Sub-Registrar's office.
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Pay the stamp duty and registration fees correctly.
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Apply for a Khata transfer to your name.
-
Start paying property tax after registration.
-
Keep Copies Of
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Registered sale deed
-
EC after registration
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Payment
-
All previous owner documents
8. Common Mistakes First-Time Investors Make
-
Purchasing plots based on brochures without verifying the approvals.
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Not checking on EC and Khata.
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Buying revenue sites based on the expectation that they will "get approval later."
-
Paying a token/advance prior to document verification. Not physically visiting the plot multiple times.
Non-Resident Indians (NRIs) are increasingly looking at non-agricultural (NA) plots in India as a stable and high-growth investment. These lands are legally approved for residential or commercial use, making them far more accessible to NRIs than agricultural properties.
But what exactly can an NRI buy? What rules apply? And how can you safely complete the purchase from abroad?
Here’s a simple guide.
1. NRIs Can Buy NA (Non-Agricultural) Land Without Special Permission
NRIs are allowed to buy non-agricultural land in India.
No special approval from the Reserve Bank of India (RBI) is required.
This includes:
- Residential NA plots
- Commercial NA plots
- Approved layouts in township or plotting projects
NA land is fully legal for NRI purchase and is treated the same as buying residential/commercial property.
2. Payment Rules for NRIs Buying NA Plots
NRIs must follow banking rules under FEMA. Payments can be made only through:
- Inward remittance from abroad
- NRE account
- NRO account
- FCNR account
- Cash payments are not allowed.
This creates transparency and helps with future repatriation of funds.
3. Properties NRIs Cannot Buy
NRIs are restricted from buying:
- Agricultural land
- Farmhouses
- Plantation land
These can only be owned if the NRI inherits them or receives them as a gift.
So, for new purchases, only NA land is allowed.
4. Power of Attorney (POA) Helps If You’re Abroad
If the NRI is not in India during the transaction, they can give a Power of Attorney to a trusted relative, friend or a professional representative.
The POA holder can legally carry out tasks like signing agreements, completing paperwork, and handling registration formalities.
5. Legal Due Diligence: The Most Important Step
Before buying any NA plot, NRIs must confirm that the land is officially converted from agricultural to non-agricultural by the authorities.
✔ Title and Ownership
Check title deeds to ensure the seller has the legal right to sell.
✔ Encumbrance Certificate (EC) for 30 Years
This confirms the land is free from legal disputes or loans.
✔ Approvals & NOCs
Look for:
- Layout approval
- Local authority permissions
- Tax receipts
- Completion certificates (if applicable)
- A clean plot saves you from trouble later.
6. Repatriation Rules: What Happens When You Sell?
When an NRI sells an NA plot:
- If purchased using NRE funds
- The original investment amount can be repatriated abroad in foreign currency.
- If capital gains are earned
- The profit must first be credited to an NRO account.
- Repatriation is allowed but within RBI limits.
- If purchased using NRO funds
Repatriation is limited to USD 1 million per financial year, including all assets and income.
7. How Non-Resident Indians Purchase a NA Plot in India
Step 1: Verify that the land is NA
Step 2: Designate a POA (useful but optional)
A general power of attorney facilitates the process.
Step 3: Conduct exhaustive due diligence
To verify documents, approvals, and land history, speak with a legal professional.
Step 4: Put a Sale Contract into Action
This needs to be signed and stamped by the POA holder or both parties.
Step 5: Transfer money through approved channels.
Use NRE/NRO/FCNR accounts or inward remittances.
Step 6: Register the sale deed
To complete ownership, pay stamp duty and registration charges.
Conclusion
Buying NA plots is one of the simplest and safest real estate investments that NRIs can make in India. With no need for special RBI approval and clear guidelines under FEMA, NA land offers strong potential for appreciation, development, and future returns.
As long as you verify the land status, ensure clean paperwork, and follow proper banking channels, purchasing an NA plot becomes a smooth and secure process for any NRI.
5 Key Things NRIs Should Know Before Investing in Indian Real Estate
1. Foreign Exchange Rules
- NRIs must follow the FEMA (Foreign Exchange Management Act when investing.
- They can generally buy residential or commercial property, but not agricultural land.
- Inheritance or gifts of property are allowed, even for NRIs.
- Court permission may be needed in very specific cases for farm or agricultural land.
2. Tax Implications
- When selling the property within 2 years, any profit is treated as short-term capital gains — taxed at 30%.
- If the property is sold after 2 years, it falls under long-term capital gains, and the tax rate is 20% (after adjusting for inflation).
- The tax for long-term gains needs to be paid on the full sale value first; later, you can claim a rebate based on the indexed cost.
3. Picking the Right Type of Property
- NRIs should decide whether they want residential or commercial property, depending on their goal (rent-earning, capital growth, personal use).
- Residential properties are currently more popular and in demand, but commercial real estate in good locations can yield strong rental returns.
- It's safer to invest with reputed and trusted builders — check for certifications, government approvals, and track records.
4. Using Power of Attorney (POA)
- Since NRIs may not always be physically present in India, they can appoint a Power of Attorney (POA) to manage the property.
- Choose a trusted person (family or professional) as POA to oversee payments, maintenance, or legal matters.
- Ensure the POA document is legally sound and follows all government compliance to avoid future disputes.
5. Home Loan Options
- NRIs can take home loans in India — typically up to 80% of the property value.
- It’s recommended to use an NRE account when applying for the loan.
- After selling, loan repayment or proceeds can often be managed through NRE / NRO accounts, making it simpler to move money.
Why It’s a Good Time to Invest
- Real estate offers diversification compared to stocks or crypto.
- With research and compliance, NRIs can tap into India’s real estate market and gain from capital growth or rental income.
1. Meaning of Benami Property
- Any asset held in someone else's name, while the actual payment was made by another person, constitutes a benami property.
- The person in whose name the property is registered is called the benamidar.
- Beneficial owner means the real payer or the person who receives the benefit of the property.
- The term applies to: Land, plots, buildings, Farmhouses, vehicles, jewellery, cash, shares, financial assets
2. Why Benami Transactions Are Prohibited
These Benami properties are used to:
- Conceal illegal revenues
- Hide assets
- Evade taxes
- Invest black money in real estate.
3. Types of Benami Transactions
A transaction may be benami if:
- Property is in some other person's name, yet money is provided by some other person.
- The owner denies knowledge of the property.
- The actual source of the funds remains hidden.
- A fictitious name or identity is used in the transaction.
4. What is not Benami
Certain genuine situations are exempt, such as:
- Property held in the name of a spouse or child
- Property held for the benefit of a Hindu Undivided Family.
- Assets held by a trustee, company director, or partner on behalf of the organization.
- Property acquired through known and legal sources of income with proper documentation.
5. Important Provisions of the Benami Property Act
All benami transactions are strictly prohibited.
Authorities are empowered to:
- Investigate
- Attach property
- Freeze transfers
- Confiscate assets
- The law applies to both:
- The nameholder (benamidar)
- The beneficial owner -actual payer-
6. Penalties for Benami Transactions
Penalties under the law are stringent:
- Rigorous imprisonment from 1 to 7 years.
- A monetary penalty of up to 25% of the fair market value of the property.
- For furnishing false information or misguiding the investigations, end
- Imprisonment of between 6 months and 5 years.
- A fine of up to 10 per cent of the property's fair market value.
7. Consequences for Individuals
If involved in a benami deal:
- You lose legal ownership of the property.
- Confiscated property is taken by the government without compensation.
- Both parties can face jail and fines: the real owner and the nameholder.
- Even unknowing participation may lead to investigations and legal problems.
8. Why Understanding Benami Laws Matters
- Prevents buying property that might thereafter be seized.
- Helps in ensuring that real estate transactions are clean, transparent, and compliant.
- Safeguards residents and NRIs from fraudulent or illegal dealings.
- Essential for safe investing in land, plots, and property in India.
Conclusion
Laws on benami property in India are designed to ensure transparency and prevent real estate from being misused for illicit financial dealings. Any property bought in someone else's name, when not clearly, legally, and documentedly justified, can be classified as benami. The penalties are strict, and the government has strong powers to investigate and confiscate such assets. It is very important for every buyer, investor, and especially NRIs who wish to invest in Indian property to understand these rules.
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