Agriculture Land Purchase Rules and Regulations in Tamil Nadu

Agriculture is the backbone of Tamil Nadu’s economy, and understanding the agriculture land purchase rules in Tamil Nadu is crucial for anyone looking to invest in farmland. The state’s fertile regions, such as the Cauvery Delta, Kongu Nadu, and southern districts, are vital for food production and hold significant economic and cultural value.

However, buying agricultural land in Tamil Nadu has strict regulations to protect farmland from unchecked commercialisation and ensure it remains with genuine cultivators.  Recent legal changes have further tightened these rules, making it essential for buyers to stay updated on the latest policies. This blog covers rules for the purchase of agricultural land in Tamil Nadu. 

Who can Purchase Agricultural Land in Tamil Nadu?

The agriculture land purchase rules in Tamil Nadu by the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961, and other relevant regulations. Generally, agricultural land can be purchased by farmers who intend to use the land for bona fide agricultural purposes. However, certain restrictions apply to prevent misuse and ensure agricultural land remains with cultivators.

Indian citizens residing in Tamil Nadu and meeting the income criteria (primarily deriving income from agriculture) are eligible to buy agricultural land. Non-resident Indians (NRIs) and foreign nationals are generally prohibited from purchasing agricultural land in Tamil Nadu unless they obtain special permission from the Reserve Bank of India (RBI) or the state government, which is rarely granted. Additionally, companies, trusts, and partnership firms may purchase agricultural land only if they are engaged in farming activities and comply with state laws.

What are the Types of Agricultural Land in Tamil Nadu?

Agricultural land in Tamil Nadu is classified based on its characteristics and usage, which helps determine its suitability for various purposes. The types are:

1. Wetland

These fertile lands have abundant water resources, making them ideal for crops like rice that require continuous irrigation. Wetlands are usually located near water bodies such as lakes or rivers, ensuring a regular water supply.

2. Dryland 

These lands have less water access than wetlands and are suitable for crops requiring minimal irrigation, such as pulses, millet, and oilseeds. Drylands are common in arid regions where water conservation practices are often necessary.

3. Garden

This land is exceptionally fertile and is used for cultivating fruits, vegetables, flowers, and plantation crops like coconut or banana. Due to their rich soil and manageable climate conditions, garden lands often support high-value horticulture.

4. Forest Land

These lands are protected under the Forest Department and cannot be converted for agricultural or private purposes. They serve as natural reserves and are vital for environmental conservation.

5. Poramboke Land

Designated for public use, Poramboke land includes grazing fields, water bodies, and other common areas. It is government-owned and cannot be bought or sold for private purposes.

How Do You Register Agricultural Land in Tamil Nadu?

Registering agricultural land in Tamil Nadu is a crucial legal process that ensures rightful ownership and prevents disputes. Following the correct procedure helps buyers comply with state laws and avoid complications. Below are the steps to registering agricultural land in Tamil Nadu:

• Step 1: Verify Land Title: Before proceeding with the purchase, it is crucial to verify the land title to ensure that the seller has legal ownership. Check the Encumbrance Certificate (EC) from the Sub-Registrar Office to confirm that the land is free from disputes, mortgages, or legal claims. Additionally, verify past ownership records to avoid fraudulent transactions.
• Step 2: Obtain Patta and Chitta: Patta and Chitta are essential revenue documents that validate the ownership and classification of the land. Patta establishes the lawful owner’s name, while Chitta provides details about land type, whether agricultural or non-agricultural. These records help confirm that the land is eligible for farming purposes and free from government acquisition plans.
• Step 3: Prepare Sale Deed: A sale deed is a legally binding document that records the sale transaction. It should include complete details such as the buyer’s and seller’s names, land survey number, extent of land, agreed price, and payment terms. The deed must be drafted on stamp paper per the state’s legal requirements and signed by both parties, with witnesses present.
• Step 4: Pay Stamp Duty and Registration Fees: The Tamil Nadu government must pay the stamp duty and registration fees based on the land’s guideline value. The stamp duty is a percentage of the property value and must be paid before registration. Failure to pay the correct amount may lead to legal issues or penalties.
• Step 5: Register at the Sub-Registrar Office: Once all documents are in place, the buyer and seller must visit the local Sub-Registrar Office for the official registration. The original sale deed, identity proofs, and property documents must be submitted for verification. Biometric authentication and signatures of both parties are required to complete the process.
• Step 6: Update Revenue Records: After registration, the buyer must apply for a Patta transfer at the local Tahsildar office to update government land records with their name. This ensures that legal ownership is officially recorded and prevents future disputes. The revenue department will verify the sale deed and other documents before updating the records.

What is the Tamil Nadu Land Reforms Act?

The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961, was introduced to prevent land concentration in the hands of a few and ensure fair distribution among farmers. This act defines agriculture land purchase rules in Tamil Nadu. The Act sets a ceiling on landholding, limiting the maximum agricultural land an individual or family can own. The government acquires any land exceeding this limit and redistributes it to landless farmers to promote social and economic equity.

The Act also imposes restrictions on non-agriculturists, preventing them from purchasing agricultural land unless they obtain special permission from the authorities. This regulation safeguards farmland from being converted for non-agricultural purposes, ensuring it remains accessible to genuine farmers. Over the years, the Act has played a crucial role in land redistribution and agricultural development in Tamil Nadu.

How Do You Purchase Agricultural Land in Tamil Nadu?

Purchasing agricultural land in Tamil Nadu requires careful planning and adherence to agriculture land buying rules and procedures. Below are the steps you need to follow :

• Step 1: Verify Land Classification: Check whether the land is classified as wetland (Nanjai) or dryland (Punjai). Wetlands are more complicated to convert for non-agricultural purposes, so choose based on your intended use.
• Step 2: Check Ownership Records: Examine documents like Patta and Chitta to confirm ownership and land classification. Ensure the land has a clear title.
• Step 3: Obtain an Encumbrance Certificate.: This certificate ensures that the land is free from legal disputes, mortgages, or claims by third parties.
• Step 4: Draft Sale Agreement: Prepare a sale agreement with the seller detailing terms, conditions, and payment schedules. Consult a legal expert to avoid future disputes.
• Step 5: Register the Land: To register the land, visit the sub-registrar’s office. There, submit the required documents, pay stamp duty, and pay registration fees.
• Step 6: Update Land Records: After registration, update the land records to reflect your ownership. This ensures legal recognition and avoids future complications.

What are the Documents Required for Agricultural Land Purchase in Tamil Nadu?

Purchasing agricultural land in Tamil Nadu requires several essential documents to ensure a smooth and legally compliant transaction. Below is a list of required documents:

• Title Deed: The most critical document confirms the seller’s ownership of the land and ensures the title is free from disputes or encumbrances. It’s important to cross-check this document with the local authorities.
• Mother Deed: This traces the land’s ownership history. It helps verify how the land has changed hands over time and ensures no discrepancies in its ownership.
• Encumbrance Certificate (EC):Issued by the sub registrar’s office, the EC certifies that the land is not tied to any legal disputes, financial liabilities, or mortgages. This ensures the land is clear for purchase.
• Patta and Chitta: The Revenue Department provides these land records. The Patta confirms the landowner’s ownership, while the Chitta specifies the land’s nature and classification (wetland or dryland).
• Property Tax Receipts: These receipts confirm that the current owner has duly paid all property taxes for the land. This avoids the risk of pending dues falling on the buyer.
• Approved Layout Plan: If the land is part of a layout, you must check its approval status from authorities like the Directorate of Town and Country Planning (DTCP). Unapproved layouts can lead to legal issues.
• No Objection Certificate (NOC): This document, issued by relevant authorities, ensures no objections to the land sale. It is crucial for lands governed by special regulations.
• Release Certificate: If the land was previously mortgaged, this certificate ensures the mortgage has been cleared, freeing the property for a legal sale.

What are the Eligibility Criteria for Agriculture Land Purchase in Tamil Nadu?

In Tamil Nadu, purchasing agricultural land is relatively straightforward for Indian citizens, but there are specific eligibility criteria to consider. The eligibility is as follows:

• Indian Citizenship: Only Indian citizens are eligible to buy agricultural land in Tamil Nadu. This restriction aligns with national laws prohibiting NRIs (Non-Resident Indians) and PIOs (Persons of Indian Origin) from owning agricultural land. If you’re a foreigner, acquiring such land is not permitted.
• Farmer Status: Only Indian citizens are eligible to buy agricultural land in Tamil Nadu. This restriction aligns with national laws prohibiting NRIs (Non-Resident Indians) and PIOs (Persons of Indian Origin) from owning agricultural land. If you’re a foreigner, acquiring such land is not permitted.
• Land Ceiling Limit: Tamil Nadu imposes a maximum limit of 59.95 acres of agricultural land ownership per family to prevent excessive land concentration in a few’s hands and promote equitable distribution. Any purchase beyond this limit must adhere to government norms and policies.
• Land Use History: Depending on the location and intended land use, buyers must also adhere to local norms, including zoning regulations and approvals from relevant authorities.

Land Conversion: Converting Agricultural Land for Non-Agricultural Purposes

Converting agricultural land for non-agricultural purposes in Tamil Nadu requires adherence to specific Tamil Nadu land conversion rules under the Tamil Nadu Change of Land Use Rules, 2017. The steps are:

• Step 1: Application Submission: Submit an application to the local authority (Municipality, Town Panchayat, or Village Panchayat) in the prescribed format. Include details about the land and the proposed non-agricultural use.
• Step 2: Document Verification: Provide necessary documents such as proof of ownership, Patta, Chitta, and an encumbrance certificate. The local authority will verify these documents to ensure the land is eligible for conversion.
• Step 3: Collector’s Approval: For wetland conversion, obtain prior approval from the District Collector. The Collector will inspect the site and ensure it does not fall under restricted categories like public water bodies or government lands.
• Step 4: Payment of Fees: Pay the applicable scrutiny fee (₹1,000 per plot) and the land conversion charge, which is 3% of the market value as per the Indian Stamp Act, 1899.
• Step 5: Issuance of Conversion Order : Once all conditions are met, the local authority will issue a conversion order, allowing the land to be used for non-agricultural purposes.

Key Legal Requirements for Buying Agricultural Land in Tamil Nadu

Purchasing agricultural land in Tamil Nadu involves strict legal compliance to prevent the misuse of farmland. The state’s laws prioritise protecting cultivable land and ensuring only genuine farmers can own it. Here are the essential Tamil Nadu agricultural land buying rules and legal requirements:

• Only farmers with valid agricultural income proof can purchase agrarian land freely in Tamil Nadu
• Non-farmers, companies, and trusts require special government approval to purchase
• NRIs and foreign nationals need prior permission from RBI and the state government
• A land ceiling limit of a maximum of 15 standard acres per individual/family applies
• Cauvery Delta region has a complete ban on non-farmer agricultural land purchases
• Must verify Patta, Chitta, and 30-year Encumbrance Certificate before purchase
• Clear title deed showing ownership chain is mandatory
• DTCP approval is required if the land is near urban areas
• NA (Non-Agricultural) conversion needed for non-farming usage
• Registration must be done at the Sub-Registrar Office with proper documentation
• Applicable stamp duty (6-8%) and registration fees (1%) must be paid
• Recent amendments under the Tamil Nadu Agricultural Land Conservation Act 2020 apply
• Always consult a land lawyer to verify all legal aspects before purchase

Restrictions and Exceptions in Agricultural Land Purchase in Tamil Nadu

The purchase of agricultural land in Tamil Nadu has several restrictions to protect farmland and ensure proper usage. However, certain exceptions allow non-farmers to acquire agrarian land under specific conditions. Here are the key rules for buying agriculture land in Tamil Nadu relating to restrictions and exceptions:

Key Restrictions

• Only individuals with agricultural income can freely purchase farmland in Tamil Nadu.
• Companies, trusts, and non-agriculturists usually cannot buy agricultural land.
• NRIs and foreign nationals face strict prohibitions on agricultural land purchases.
• Complete ban on non-farmer purchases in the ecologically sensitive Cauvery Delta zone.
• The land ceiling limit restricts holdings to 15 standard acres per individual/family.
• Additional approvals are needed for lands near urban development areas (DTCR zones).

Key Exceptions

• Non-farmers can purchase with special permission from the District Collector
• Inheritance allows non-farmers to acquire agricultural land
• Agricultural land can be received as a gift with proper documentation
• Land may be purchased for approved industrial projects after conversion
• Trusts may acquire land for approved educational/charitable institutions
• 30+ year lease arrangements possible for non-farmers

Role of the Agricultural Income Tax in Land Purchase in Tamil Nadu

Agricultural income tax plays a significant role in land transactions in Tamil Nadu, particularly for individuals earning income from farm activities. Below is how it impacts land purchases:

• Agricultural income is exempt from central income tax under the Indian Income Tax Act of 1961, but it is considered for calculating the tax rate on non-agricultural income.
• The Tamil Nadu Agricultural Income-Tax Act, 1955 (repealed in 2004) previously governed the taxation of agricultural income in the state.
• Buyers must ensure that the seller clears all pending agricultural income taxes, if applicable, before completing the transaction.
• Income from agricultural land, such as rent or produce sales, is classified as farm income and is exempt from tax, provided it meets the criteria defined by law.

Government Schemes and Subsidies for Agricultural Land Buyers

The Tamil Nadu government offers various schemes and subsidies to support agricultural land buyers and farmers, aiming to enhance productivity and sustainability. Below is an overview:

• Chief Minister’s Solar-Powered Pumpsets Scheme: This scheme provides a 70% subsidy for installing solar-powered pump sets to promote eco-friendly irrigation.
• Pradhan Mantri Krishi Sinchayee Yojana (PMKSY): This scheme offers subsidies for groundwater irrigation, including borewell construction and pumping systems.
• Sub-Mission on Agricultural Mechanization (SMAM): Grants a 50% subsidy for purchasing agricultural machinery, prioritising SC/ST, small, marginal, and women farmers.
• Land Development Scheme: Provides subsidised machinery for land shaping, levelling, and crop residue management.
• Tamil Nadu Irrigated Agriculture Modernization Project (TNIAMP): This project provides financial assistance to encourage crop diversification and high-tech cultivation technologies.

Navigating Agricultural Land Purchase in Tamil Nadu with NoBroker

Purchasing agricultural land in Tamil Nadu can be difficult, requiring thorough research, legal compliance, and document verification. By understanding the agriculture land purchase rules in Tamil Nadu, classifications, and necessary steps, buyers can make informed decisions and avoid potential pitfalls. With the proper guidance, buying agricultural land can be a rewarding investment that contributes to personal and agrarian development.

For a hassle-free experience, NoBroker offers various services tailored to assist with agricultural land purchases. From property verification and legal assistance to document preparation and negotiation support, NoBroker ensures a seamless transaction process. Explore their services today to simplify your journey and make your land purchase stress-free. Visit NoBroker to get started!

Frequently Asked Questions

Loved what you read? Share it with others!