One of the most frequently asked questions we receive is: "I want to buy agricultural land near Bangalore as an investment. Can I do that legally?" The answer is nuanced , and getting it wrong can result in your purchase being void.
The Karnataka Land Reforms Act, 1961
Section 79A and 79B of the Karnataka Land Reforms Act, 1961 place significant restrictions on who can purchase agricultural land in Karnataka.
Under these provisions, only an agriculturist (or a person from an agriculturist family) can purchase agricultural land. A non-agriculturist , which includes most urban buyers, salaried professionals, and companies , cannot directly purchase agricultural land.
Who is an "Agriculturist" Under Karnataka Law?
An agriculturist is a person who personally cultivates land. A family is an agriculturist family if at least one member personally cultivates land. Importantly, owning agricultural land does not by itself make someone an agriculturist if they do not personally cultivate it.
Income Ceiling for Agricultural Land Purchase
Section 79A also imposes an income limit. A person whose income from non-agricultural sources exceeds ₹25 lakhs per year (as of the current threshold) cannot purchase agricultural land in Karnataka, even if they are agriculturists.
This ceiling was raised in recent amendments, but the restriction remains significant for urban buyers with high incomes.
The 2020 Amendment , What Changed?
In 2020, Karnataka amended the Land Reforms Act to allow any Indian citizen to purchase agricultural land in Karnataka, removing the agriculturist requirement. However, the 2020 amendment was controversial and was subsequently reviewed. As of 2026, the restriction on non-agriculturists has been reinstated in key aspects. Always confirm the current legal position with a lawyer before transacting.
Can Companies Buy Agricultural Land in Karnataka?
Generally, companies cannot purchase agricultural land in Karnataka unless they are engaged in agriculture or agro-based industries and obtain prior government permission. Farmhouse developments marketed by companies are typically on land that has been DC-converted to residential/recreational use , not raw agricultural land.
What Happens If You Buy Illegally?
If a non-agriculturist purchases agricultural land in violation of Section 79A/79B, the purchase can be declared void and the land taken over by the government. The buyer loses both the land and the purchase price. This risk is real and has affected buyers in peri-urban Bangalore who purchased "farm plots" without checking the legal status.
Legal Pathways for Non-Farmer Investors
- Buy DC-converted land: Once agricultural land has obtained a DC Conversion Order, it is no longer classified as agricultural. Any buyer can purchase it.
- Buy through an approved layout: Agricultural land converted and formed into a BDA/BBMP-approved layout can be purchased by anyone.
- Obtain prior permission: Non-agriculturists can apply to the Deputy Commissioner for permission to purchase agricultural land for specific purposes (e.g., industrial, agro-processing).
Before You Buy Any Land in Karnataka
Always check the RTC Pahani to confirm the land's current classification. If it shows "agricultural," verify the DC conversion status before proceeding. Our team provides end-to-end agricultural land verification in Karnataka including legality checks for non-farmer buyers.