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CM Devendra Fadnavis suspends the ₹750-crore TDR proposal for Janata Vasahat Land in Pune and orders an investigation.Buying land in Maharashtra can be a long and complex process. There are many rules and checks to follow to make sure the land is legal, clear of disputes, and fit for your use. The IndusLaw guide explains how land deals work in Maharashtra and what buyers should watch out for.
1. Why You Need to Understand the Process
- Land laws in India are different in every state. In Maharashtra:
- The buyer is responsible for checking the land’s ownership and legal status.
- Mistakes can be costly, so you need to verify all documents carefully.
The government provides online portals (like Mahabhumi) to check official land records such as 7/12 extracts and property cards.
2. Main Steps in Buying Land
Step 1: Check the Documents
- Start by checking who owns the land.
- Review all ownership papers (title deeds).
- Get the 7/12 extract and property card from government websites.
Make sure the name in the records matches the seller’s name.
Step 2: Do Legal Checks (Due Diligence)
Before buying, find out:
- If there are any court cases or disputes about the land.
- If the land is mortgaged or has unpaid taxes.
- If the land can legally be used for what you want (home, shop, factory, etc.).
It’s also smart to publish a public notice in a local newspaper to check if anyone else claims the land.
Step 3: Get Necessary Permissions
Some land types need government approval before sale:
- Agricultural land can only be sold to farmers or to others with special permission.
- Tribal land has extra protection — special approval is needed.
- Fragmented land (small divided plots) may have restrictions under the law.
If the land is being sold for industrial or township use, there are certain exemptions, but you must start using it for that purpose within five years.
Step 4: Final Sale and Registration
Once everything is clear:
- Prepare and sign the sale deed.
- Pay the correct stamp duty and registration charges.
- Register the sale deed at the local registration office.
- Update the 7/12 extract, property card, and municipal records with your name as the new owner.
3. Common Problems to Avoid
Buying agricultural land without permission: Only farmers can buy such land unless the Collector allows it or an exemption applies.
- Not checking land use: Agricultural land must be converted to non-agricultural (NA) use before building a house or factory.
- No road access: Ensure the land has a legal road or right of way.
- Boundary mistakes: Always get a land survey done to confirm size and boundaries.
- Hidden cases or loans: Verify there are no legal disputes or mortgages.
4. The Significance of These Steps
Adhering to the proper procedure benefits you:
- Legally and securely own the land.
- Prevent penalties or court cases in the future.
- Make use of the land as you intend.
- Make sure the government has your name updated correctly.
Each land transaction is unique. Depending on the area and kind of land, special regulations may be applicable even if you follow all the procedures.
The best course of action is to:
- Hire a lawyer who knows land laws in Maharashtra.
- Before making a payment, verify all documentation and authorisation.
- Keep copies of all documents safely.
Summary Checklist
- Check ownership and extract 7/12
- Look for loans or court cases
- Verify the zoning and land use
- Obtain the required authorisations
- Properly register the sale deed
- Revise land records under your name.
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Why Land Investment is a Good Idea1. The NRI Interest in Farmland
Many NRIs dream of owning agricultural land or a farmhouse in India.
However, farmland ownership for NRIs is legally restricted and needs careful compliance.
2. What NRIs Cannot Buy
Direct Purchase Restrictions (FEMA Rules)
NRIs/OCIs cannot directly purchase the following:
- Agricultural land
- Plantation property
- Farmhouses
3. Why This Restriction Exists
FEMA and RBI regulations classify agricultural land as restricted property for foreign persons.
Buying without compliance can lead to:
- Penalties
- Land being declared illegal possession
- Enforcement actions
4. What NRIs Can Acquire Legally
1. Inherited Property
NRIs can inherit agricultural/plantation land or a farmhouse.
Inheritance is a fully legal and common way for NRIs to own agricultural land.
2. Receiving Land as a Gift
NRIs can receive agricultural land as a gift from a resident Indian relative.
But they cannot gift agricultural land to another NRI or OCI.
5. Buying Agricultural Land With RBI Permission
- Agricultural land
- Plantation property
- A farmhouse
Applications must be submitted to the RBI Exchange Control Department (Foreign Investment Division), Mumbai.
Approval is not guaranteed; it is granted case-by-case.
6. Key Documents Required
Before proceeding, NRIs must collect:
- Mother Deed / Title Deeds
- Personal documents (passport, OCI/PIO card, visa status)
- Evidence of inheritance/gift deed, if applicable
- Source of funds documentation
- Declarations required under state laws
- RBI permission documents, if approval is sought
7. Gift & Benami Law Restrictions
Gifting Rules
Allowed: Resident Indian → NRI (gift of agricultural land)
Not allowed: NRI → NRI/OCI (gift of agricultural land)
Benami Transactions Act
NRIs cannot buy land in someone else’s name, except:
- Spouse
- Sibling
- Parent
- Child
Violating this can lead to property confiscation and penalties.
8. Selling Agricultural Land as an NRI
If the Land Was Inherited
NRIs can sell inherited agricultural land, but with conditions:
- Sale is usually allowed only to a resident Indian.
- The sale amount must be credited to an NRO account.
- Repatriation (sending money abroad) is allowed up to USD 1 million per financial year, after:
- Paying taxes
- Filing forms 15CA & 15CB
9. Tax Rules Explained
Urban vs Rural Agricultural Land
- Rural agricultural land
- Not considered a capital asset → may attract no capital gains tax.
- Urban agricultural land
10. State-Level Land Laws
Land rules differ across states — some require you to be a registered farmer.
Even with RBI permission, state regulations may stop or delay agricultural land purchase.
Certain states only allow purchase if:
- You already own agricultural land
- You have farmer ancestry
- You meet specific local criteria