What You Should Know Before Buying Agricultural Land in India (2025 Guide for Karnataka Buyers)

Here’s a snapshot of the important points covered in this article:

• Who is legally allowed to buy agricultural land in Karnataka

• Key documents and legal checks you should never skip

• Zoning rules and DC permissions explained in plain terms

• The most common risks to watch out for (like SC/ST or forest land)

• How to evaluate farmland near Bangalore for soil, water, and location

• Tips for buying farmland safely, without getting stuck in legal troubles

Who Can Buy Agricultural Land in Karnataka?

If you’re thinking about buying farmland near Bangalore, the good news is that Karnataka has become more investor-friendly over the past few years. Earlier, only people classified as “farmers” could purchase agricultural land. But things have changed.

Here’s what you need to know:

• As of the 2020 amendment, any Indian citizen can buy agricultural land in Karnataka, even if they are not from a farming background.

• The only condition? Your non-agricultural income should be less than ₹25 lakhs per year.

• If your income is above that limit, you can still apply for special permission from the Deputy Commissioner (DC) of the district. This is reviewed on a case-by-case basis.

To prove eligibility, you’ll be asked to submit an affidavit declaring your annual income, and that becomes part of your sale deed during land registration.

This relaxed rule has opened doors for salaried professionals, urban investors, and even first-time buyers from cities like Bangalore to legally own productive farmland.

Legal Documents and Permissions You’ll Need

Once you’re eligible, the next step is paperwork—and in the case of farmland, it’s serious business. Missing even one document can lead to legal complications or registration rejection.

Here’s a simple list of what you should verify before making the purchase:

• Title Deed – confirms ownership and land history. It should be clear, continuous, and undisputed.

• Encumbrance Certificate (EC) – shows if the land has any loans, disputes, or legal issues attached.

• RTC (Record of Rights, Tenancy & Crops) – this document shows current ownership, land use, and cropping history.

• Mutation Extract (MR) – used to verify legal transfer of ownership from past sales or inheritance.

• Form 1 and 14 – foundational land records that prove agricultural classification.

Optional but important:

• Akarbandh and Pahani – official land measurement and cultivation data

• Conversion Certificate – only needed if the land has been converted from non-agricultural use or you plan to use it for something else like a resort or homestay

• Zoning Clearance – especially if the land lies near a forest, water body, or under BDA limits

All these documents should be verified through a lawyer or a registered farmland service provider. It’s even better if you can cross-check them physically at the local village office or Taluk revenue department.

Understanding Zoning and Land Restrictions in Karnataka

Even if you’re eligible and the documents look fine, that doesn’t always mean the land is usable the way you expect. In Karnataka—especially around Bangalore—zoning and land-use regulations play a big role in what you can and can’t do with agricultural land.

Here’s what you should be aware of:

• BDA or BMIC Zones: If the land lies within Bangalore Development Authority (BDA) or Bangalore Mysore Infrastructure Corridor (BMIC) limits, it might be earmarked for urban planning or infrastructure. These plots may require special approvals or may not be classified as agricultural at all.

• Greenbelt or Eco-Sensitive Zones (ESZ): Areas near forest zones (like parts of Kanakapura or Bannerghatta) fall under ESZ. These lands are protected and come with restrictions on farming, construction, and even fencing.

• SC/ST Transferred Lands (PTCL Act): If the land was previously granted to a Scheduled Caste or Tribe beneficiary, it may not be legally transferable—even if it was sold long ago. In many cases, such land can be reclaimed by the government or original beneficiaries, creating major legal issues.

• Lake Beds and Buffer Zones: Avoid land near lakes or streams unless it’s legally certified as usable. In Bangalore, many so-called “farm plots” have been flagged for encroaching on lake catchments or stormwater drain paths.

Always ask for a zoning clearance letter and check satellite maps for forest, water body, or BDA layout proximity. It’s not just about legality—it’s also about peace of mind after you buy.

Choosing the Right Farmland: Soil, Water, and Location

Once you’re clear on legal and zoning aspects, it’s time to focus on what really makes land valuable: how fertile and usable it actually is.

Here are 3 key things to evaluate before buying any agricultural land near Bangalore:

1. Soil Quality

The type of soil affects what crops you can grow and how productive your land will be.

• Red loamy soil (found in Kanakapura, Channapatna): Great for vegetables, millets, and fruit trees

• Black cotton soil (around Tumkur and Doddaballapur): Ideal for pulses and cotton

• Laterite or gravel-heavy soil: Avoid unless mixed or improved with soil care practices

Ask the seller or farm developer to provide a recent soil test report, or you can get it tested at local Krishi Vigyan Kendras.

2. Water Availability

Water is the lifeline of your land. Don’t assume it’s available—verify it.

• Is there an existing borewell? If yes, when was it drilled and at what depth?

• Are nearby farms using open wells, drip irrigation, or tanks?

• Does the land fall under any local irrigation scheme or canal project?

3. Location and Access

The best farmland is not just fertile—it’s also accessible and future-proof.

• Choose land within 50–80 km from Bangalore for better connectivity

• Look for plots near state highways (SH) or NH corridors

• Areas like Chikkaballapur, Malur, Ramanagara, and Kanakapura are popular among urban buyers and often see better appreciation

Also, think long term. If a location is currently remote but has signs of upcoming infrastructure—like the Satellite Town Ring Road (STRR)—it might be a smart early bet.

Can You Get a Loan for Agricultural Land in India?

Yes, it is possible to get a loan for buying agricultural land—but it’s not as straightforward as a home loan. Most banks offer land loans, but with specific conditions.

Here’s what you need to know if you’re buying land in Karnataka:

• Banks prefer lending to actual farmers or agri-preneurs. If you’re a salaried person or a professional with no farming history, you might face challenges unless the land is being managed for actual cultivation.

• Loan eligibility depends on land location, title clarity, and your income profile. Nationalized banks like SBI, Canara Bank, and even smaller players like Ujjivan SFB offer land loans with interest rates around 9%–11%.

• NABARD subsidies or agricultural schemes may apply if you’re planning actual farming activities (not just land holding). These come with lower interest rates and repayment flexibility.

• Loan-to-value ratio (LTV) is usually 60–75%. That means if the land is priced at ₹50 lakhs, you might get ₹30–35 lakhs as a loan, and pay the rest upfront.

Important: If you’re buying managed farmland or working with a company like Hasiru Farms, some of them partner with banks or NBFCs to offer pre-approved land finance. Always ask about this before making a decision.

Step-by-Step Process to Buy Agricultural Land in Karnataka

Now that you know the legal, zoning, and financial aspects, here’s a clear process you can follow to safely purchase farmland in Karnataka:

Step 1: Identify and Inspect the Land

Visit the property. Check the soil, water, access roads, and boundary demarcation. Use Google Maps and village maps for zoning clarity.

Step 2: Verify Documents

Ask for the title deed, RTC, EC, and mutation record. Match the seller’s name and survey numbers in each document. If anything seems unclear, get it reviewed by a lawyer.

Step 3: Draft and Sign an Agreement to Sale

This document locks the price and payment terms. Include a timeline for full payment and registration. If you’re paying in stages, mention that too.

Step 4: Submit Affidavit (if required)

If your income is under ₹25 lakhs/year, submit an affidavit stating your eligibility to buy agri land. This will be part of the registration file.

Step 5: Sale Deed & Registration

Register the sale deed at the Sub-Registrar’s Office. Both buyer and seller need to be present. Stamp duty is around 5.6% of the transaction value.

Step 6: Mutation and Revenue Record Update

After registration, apply for mutation to update land ownership in revenue records. This final step ensures your name appears in the land registry and RTC.

This whole process can take 2–4 weeks, depending on document clarity and whether you’re applying for a loan or DC approval.

Red Flags and Common Mistakes to Avoid

Buying agricultural land can be a rewarding investment, but only if you stay cautious. A lot of people rush into deals based on emotion, assumptions, or incomplete paperwork — and end up stuck in legal or zoning messes.

Here are the most common red flags and mistakes to avoid:

• Buying SC/ST-transferred land without DC clearance

Land originally granted to Scheduled Castes or Tribes is often protected under the PTCL Act. Even if the land changed hands decades ago, the government or original beneficiary can reclaim it if sold without proper approval.

• Land near forest areas or buffer zones

If the land lies close to national parks or wildlife zones (like near Bannerghatta or Devarayanadurga), there might be activity restrictions or even legal bans on fencing and construction.

• Encroached or lakebed property

Some farmland sellers try to offload encroached government land, or plots that fall under lake catchment zones. These deals might seem cheap, but they’re extremely risky and often flagged by BBMP or BDA.

• Missing mutation or RTC mismatch

If the seller’s name isn’t updated in the RTC or mutation record, don’t proceed—even if they have a sale deed. Revenue records must match the claim.

• Assuming all farm plots are “convertible”

Just because a plot has road access or fencing doesn’t mean you can build on it. Converting agricultural land into residential or resort use requires DC approval and local zoning clearance.

The safest way to avoid these issues? Work with a trusted land consultant or vetted farmland company that offers pre-verified properties with clean paperwork.

A Real Buyer Experience from Bangalore

Let’s look at how one Bangalorean turned their farmland dream into a smart investment.

Buyer profile: Divya, 34, software engineer living in Sarjapur

Investment: 1.5 acres of managed farmland near Malur

Price paid: ₹63 lakhs (including fencing, borewell, and intercropping setup)

What she planted: Mango and banana trees, with intercrop vegetables in the first 2 years

Returns so far:

• Approx ₹1.2 lakh/year from vegetable yields (year 2 onward)

• Land value appreciated to ₹92 lakhs in 3 years

• Weekend visits with family became a bonus she hadn’t expected

What made it work?

“The company I worked with Hasiru Farms handled all the legal formalities and even helped with getting my income affidavit notarized. It felt like buying real estate with a support system—not just a plot of dirt.”

Divya’s experience reflects what many urban professionals want—a safe, hands-off way to own productive land that can grow both food and wealth over time.

FAQs: Buying Agricultural Land in India – Your Questions Answered