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HOW A NON-AGRICULTURIST/COMPANY CAN BUY AGRICULTURAL LAND PROCEDURE AND LAW INVOLVED IN IT IN KARNATAKA

KARNATAKA LAND REVENUE ACT



RESTRICTIONS ON HOLDING OR TRANSFER OF AGRICULTURAL LANDS

79A. Acquisition of land by certain persons prohibited.—

(1) On and from the commencement of the the Karnataka Land Reforms (Amendment) Act, 1995, no person who or a family or a joint family which has an assured annual income of not less than rupees two lakhs from sources other than agricultural lands shall be entitled to acquire any land whether as land owner, landlord, tenant or mortgagee with possession or otherwise or partly in one capacity and partly in another.

(2) For purposes of sub-section (1)—

(i) the aggregate income of all the members of a family or a joint family from sources other than agricultural land shall be deemed to be income of the family or joint family, as the case may be, from such sources;

(ii) a person or a family or a joint family shall be deemed to have an assured annual income of not less than rupees two lakhs from sources other than agricultural land on any day if such person or family or joint family had an average annual income of not less than rupees two lakhs from such sources during a period of five consecutive years preceding such day.

Explanation.—A person who or a family or a joint family which has been assessed to income tax under the Income Tax Act, 1961 (Central Act 43 of 1961) on an yearly total income of not less than rupees two lakhs for five consecutive years shall be deemed to have an average annual income of not less than rupees two lakhs from sources other than agricultural lands.



(3) Every acquisition of land otherwise than by way of inheritance or bequest in contravention of this section shall be null and void.

(4) Where a person acquires land in contravention of sub-section (1) or acquires it by bequest or inheritence he shall, within ninety days from the date of acquisition, furnish to the Tahsildar having jurisdiction over the Taluk where the land acquired or the greater part of it is situated a declaration containing the following particulars, namely:—

(i) particulars of all lands;

(ii) the average annual income of himself or the family;

(iii) such other particulars as may be prescribed.

(5) The Tahsildar shall, on receipt of the declaration under sub-section (4) and after such enquiry as may be prescribed send a statement containing the prescribed particulars relating to such land to the Deputy



Commissioner who shall, by notification, declare that with effect from such date as may be specified in the notification, such land shall stand transferred to and vest in the State Government without further assurance free from all encumbrances. From the date specified in such notification the Deputy Commissioner may take possession of such land in such manner as may be prescribed.

(6) For the land vesting in the State Government under sub-section (5), where the acquisition of the land was by bequest or inheritance, an amount as specified in section 72 shall be paid and where the acquisition was otherwise than by bequest or inheritance, no amount shall be paid.



79B. Prohibition of holding agricultural land by certain persons.—(1) With effect on and from the date of commencement of the Amendment Act, except as otherwise provided in this Act,—

(a) no person other than a person cultivating land personally shall be entitled to hold land; and

(b) it shall not be lawful for,-

(i) an educational, religious or charitable institution or society or trust, other than an institution or society or trust referred to in sub-section (7) of section 63, capable of holding property;

(ii) a company;

(iii) an association or other body of individuals not being a joint family, whether incorporated or not; or

(iv) a co-operative society other than a co-operative farm,

to hold any land.

(2) Every such institution, society, trust, company, association, body or co-operative society,—

(a) which holds lands on the date of commencement of the Amendment Act and which is disentitled to hold lands under sub-section (1), shall, within ninety days from the said date, furnish to the Tahsildar within whose jurisdiction the greater part of such land is situated a declaration containing the particulars of such land and such other particulars as may prescribed; and

(b) which acquires such land after the said date shall also furnish a similar declaration within the prescribed period.



(3) The Tahsildar shall, on receipt of the declaration under sub-section (2) and after such enquiry as may be prescribed, send a statement containing the prescribed particulars relating to such land to the Deputy Commissioner who shall, by notification, declare that such land shall vest in the State Government free from all encumbrances and take possession thereof in the prescribed manner.

(4) In respect of the land vesting in the State Government under this section an amount as specified in section 72 shall be paid.

Explanation.—For purposes of this section it shall be presumed that a land is held by an institution, trust, company, association or body where it is held by an individual on its behalf.





79C. Penalty for failure to furnish declaration.—(1) Where a person fails to furnish the declaration under section 79A or section 79B or furnishes a declaration knowing or having reason to believe it to be false, the Tahsildar shall issue a notice in the prescribed form to such person to show cause within fifteen days from the date of service thereof why the penalty specified in the notice, which may extend to five hundred rupees, may not be imposed upon such person.

(2) If the Tahsildar on considering the reply, if any, filed is satisfied that the person had failed to furnish the declaration without reasonable cause or had filed it, knowing or having reason to believe it to be false, he may, by order, impose the penalty and also require such person to furnish within a period of one month from the date of the order a true and correct declaration complete in all particulars.

(3) If the person fails to comply with such order, his right, title and interest in the land concerned shall, as penalty, be forfeited to and vest in the State Government.







80. Transfers to non-agriculturists barred.—(1) (a) No sale (including sales in execution of a decree of a civil court or for recovery of arrears of land revenue or for sums recoverable as arrears of land revenue), gift or exchange or lease of any land or interest therein, or

(b) no mortgage of any land or interest therein, in which the possession of the mortgaged property is delivered to the mortgagee, shall be 2[lawful]2 in favour of a person,—

(i) who is not an agriculturist, or



(ii) who being an agriculturist holds as owner or tenant or partly as owner and partly as tenant land which exceeds the limits specified in section 63 or 64; or

(iii) who is not an agricultural labourer; or

(iv) who is disentitled under section 79A or section 79B to acquire or hold any land:]3

Provided that the Assistant Commissioner having jurisdiction over the area or any officer not below the rank of an Assistant Commissioner authorised by the State Government in this behalf in respect of any area may grant permission for such sale, gift, or exchange, 3[to enable a person other than a person disentitled to acquire or hold land under section 79A or section 79B]3 who bona fide intend taking up agriculture to acquire land on such conditions as may be prescribed in addition to the following conditions, namely:—

(i) that the transferee takes up agriculture within one year from the date of acquisition of land, and

(ii) that if the transferee gives up agriculture within five years, the land shall vest in the State Government subject to payment to him of an amount equal to eight times the net annual income of the land or where the land has been purchased, the price paid for the land, if such price is less than eight times the net annual income of the land.



(2) Nothing in sub-section (1) shall apply to lands granted under section 77.







81. Sections 79A, 79B, and 80 not to apply in certain cases.—(1) Nothing in section 79A or section 79B or section 80 shall apply to,—

(a) the sale, gift or mortgage of any land or interest therein in favour of the Government: 2[the Karnataka State Road Transport Corporation constituted under the Road Transport Corporation Act, 1950 (Central Act LXIV of 1950), the Karnataka Power Transmission Corporation Limited constituted under the Companies Act, 1956]2 3[the Karnataka Housing Board constituted under the Karnataka Housing Board Act, 1962 (Karnataka Act 10 of 1963), the Industrial Areas Development Board constituted under the Karnataka Industrial Areas Development Act, 1966 (Karnataka Act, 18 of 1966), the Karnataka Slum Clearance Board established under the Karnataka Slum Areas (Improvement and Clearance) Act, 1973, (Karnataka Act 33 of 1974) the Bangalore Development Authority constituted under the Bangalore Development Authority Act, 1976 (Karnataka Act 12 of 1976), a Nagarabhivruddhi Pradhikara constituted under the Karnataka Nagarabhivruddhi Pradhikaragala Adhiniyama, 1987 (Karnataka Act 34 of 1987).]3

(b) the mortgage of any land or interest therein in favour of,—

(i) a co-operative society;

(ii) a financial institution;



(vi) any company as defined in section 3 of the Companies Act, 1956 (Central Act 1 of 1956) in which not less than fifty-one per cent of the paid up share capital is held by the State Government or the Central Government or both;

(vii) any corporation, not being a company as defined in section 3 of the Companies Act, 1956 (Central Act 1 of 1956) established or constituted by the State Government [or the Central Government or both];

(viii) the Coffee Board constituted under the Coffee Act, 1942 (Central Act 7 of 1942),

as security for any loan or other facility given by such society, bank, company, corporation or Board for agricultural purposes.

Explanation.—In this clause ‘agricultural purposes’ include making land fit for cultivation, cultivation of land, improvement of land, development of sources of irrigation, raising and harvesting of crops, horticulture, forestry, planting and farming, cattle breeding, animal husbandry, dairy farming, seed farming, pisciculture, apiculture, sericulture, piggery, poultry farming and such other activities as are generally carried on by agriculturists, dairy farmers, cattle breeders, poultry farmers and other categories of persons engaged in similar activities including marketing of agricultural products, their storage and transport and the acquisition of implements and machinery, in connection with any such activity;



(c) the sale of any land or interest therein referred to in clause (b) in enforcement of the said security;

(d) the sale of any land in favour of a sugar factory for purposes of research of seed farm or sale in favour of the Coffee Board constituted under the Coffee Act, 1942 (Central Act 7 of 1942).



(2) The institutions referred to in clause (b) of sub-section (1) acquiring land or interest therein shall dispose of the same by sale, within the prescribed period:

Provided that pending such sale the land may be leased for a period not exceeding one year at a time and the lease shall stand determined when the land is sold or on the expiry of one year, whichever is earlier and notwithstanding anything to the contrary in this Act or in any other law for the time being in force the lessee shall not be entitled to any right other than as such lessee in the land.

(3) Any sale by the institution under this section shall be subject to the other provisions of this Act.]1



81A. Declaration to be made before the registering authority in certain cases.—(1) No document relating to any transfer of land either by sale, gift, exchange, lease, 2[mortgage with possession surrender, agreement, settlement, or otherwise, shall be registered unless a declaration in writing is made in duplicate in such form as may be prescribed and filed by the transferee before the registering authority under the Indian Registration Act, 1908 (Central Act XVI of 1908), as to the total extent of land held by him as also his assured annual income.



(2) The registering authority referred to in sub-section (1) shall forward within such time and in such manner as may be prescribed, one copy of the declaration referred to in sub-section (1), to the prescribed officer, within





whose jurisdiction the land which is the subject matter of the transfer or the major part thereof is situated.

(3) On receipt of the copy of the declaration under sub-section (2), the prescribed officer may obtain such information as may be necessary and take such action as he deems fit in accordance with the provisions of this Act, and in accordance with such rules as may be made in this behalf.



82. Reporting of illegal transactions.—Every village officer and every officer of the Revenue, Registration and Land Records Departments shall report to the 1[x x x]1 prescribed authority, 2[x x x]2, every transaction in respect of any land in contravention of any of the provisions of this Act, 3[as they stood before and as they stand after the date of commencement of the Amendment Act]3 which comes to the notice of such officer.



83. Inquiry regarding illegal transactions.—The prescribed authority shall, after a summary inquiry, determine whether the transaction reported to it under section 82 or coming to its notice in any other manner is in contravention of 1[or is unlawful or invalid under]1 the provisions of this Act, 2[as they stood before or as they stand after the date of commencement of the Amendment Act]2 and make a declaration accordingly. Any transaction so declared to be in contravention of 1[or is unlawful or invalid under]1 any of the provisions of this Act, 2[as they stood before or as they stand after the date of commencement of the Amendment Act]2 shall be null and void. 2[The land in respect of which such transaction has taken place shall, as penalty, be forfeited to and vest in the State Government 3[free from all encumbrances]3. No amount is payable therefor



72. Amount payable for lands surrendered to and vesting in the State Government.—(1) Save as otherwise provided in this Act, the amount payable in respect of land to be taken over by the State Government under sections 68, 70, 71, 79A and 79B shall be determined with reference to the net annual income derivable from the land in accordance with the following scale, namely:—

(i) for the first sum of rupees five thousand or any portion thereof of the net annual income from the land, fifteen times such sum or portion;

(ii) for the next sum of rupees five thousand or any portion thereof of the net annual income from the land, twelve times such sum or portion;

(iii) for the balance of the net annual income from the land, ten times such balance:

Provided that where the land taken over by the State Government is D Class land referred to in Part A of Schedule I, an amount equal to twenty times the net annual income thereof shall be payable.

(2) For the purpose of sub-section (1), the net annual income from the land shall be deemed to be the amount payable as annual rent in respect of the land as specified in section 8. But where in a land assessed as wet land or dry land, the owner has raised fruit bearing trees, the net annual income of such land for purposes of sub-section (1) shall be determined on the basis of assessment for garden land which could have been levied having regard to the nature of the fruit bearing trees.



(3) The amount under sub-section (1) shall be payable as follows:—

(a) to the tenant, if any, in possession of the land, an amount equal to one year’s net annual income;

(b) to the owner, the balance.

(4) Where there are wells or other structures of a permanent nature on the land, constructed by the owner then, the value thereof calculated in the prescribed manner shall also be payable.

(5) Notwithstanding anything in sub-sections (1) and (4), the aggregate amount payable according to the said sub-sections shall not exceed rupees two lakhs.

2[(6) x x x]1



109. Certain lands to be exempt from certain provisions.—(1) Subject to such rules as may be prescribed and the provisions of the Karnataka Town and Country Planning Act, 1961 (Karnataka Act 11 of 1963), the State Government may, by notification, exempt, any land in any area from the provisions of sections 63, 79A, 79B or 80 to be used for,—

(i) industrial development, the extent of which shall not exceed twenty units;

(ii) educational institutions recognised by the State or Central Government to be used for non-agricultural purpose the extent of which shall not exceed four units;

(iii) places of worship to be specified by Government by notification which are established or constructed by a recognised or registered body for non-agricultural purpose, the extent of which shall not exceed one unit;

(iv) a housing project, approved by the State Government the extent of which shall not exceed ten units;

(v) the purpose of horticulture including floriculture and agro based industries the extent of which shall not exceed twenty units:

Provided that the Deputy Commissioner may also exercise the powers of the State Government under this sub-section, subject to the restrictions and in the manner specified therein, in respect of the land to be used for,-

(i) industrial development, the extent of which shall not exceed ten units;

(ii) educational institutions recognised by the State or Central Government to be used for non-agricultural purpose the extent of which shall not exceed two units;

(iii) places of worship to be specified by Government by notification which are established or constructed by a recognised or a registered body for non-agricultural purpose, the extent of which shall not exceed one fourth of a unit;

(iv) a housing project, approved by the State Government the extent of which shall not exceed ten units;



(v) the purpose of horticulture including floriculture and agro based industries the extent of which shall not exceed ten units.

(1A) Notwithstanding anything contained in sub-section (1), the State Government may in public interest and for reasons to be recorded in writing, by notification and subject to the provisions of the Karnataka Town and Country Planning Act, 1961 (Karnataka Act 11 of 1963) and such restrictions and conditions as may be specified by it, exempt any extent of land from the provisions of sections 63, 79A, 79B or 80]4 for any specific purpose.

Provided that the Deputy Commissioner other than the Deputy Commissioner of Bangalore Rural District and the Deputy Commissioner of Bangalore District, may subject to the restrictions and the manner specified in this sub-section exercise the power of the State Government to grant exemptions to an extent not exceeding half hectare of land.



(2) Where any condition or restriction specified in the notification under sub-section (1), has been contravened, the State Government or as the case may be, the Deputy Commissioner may after holding an enquiry as it or he deems fit, cancel the exemption granted under that sub-section and the land in respect of which such cancellation has been made, shall, as penalty be forfeited to and vest in the State Government free from all encumbrances. No amount is payable therefor.





KARNATAKA LAND REFORMS RULES:





RULE 38-B. Conditions and Guidelines for grant of exemption under Section 109.—



(l)



(a) Exemption under Section 109, for the purpose of industrial development including tourism projects may be granted.—

(i) in case of Tiny Industry upto one quarter unit of agricultural land, on the recommendation of the District Level Single Window Agency headed by the Deputy Commissioner;

(ii) in case of Small Scale Industry, upto one unit of agricultural land, on the recommendation of District Level Single Window Agency headed by the Deputy Commissioner;

(iii) in case of Medium and Large Scale Industry having a total investment upto rupees fifty crores and requiring land upto five units, on the recommendation of the State Level Single Window Agency headed by the Principal Secretary to Government, Commerce and Industries Department;

(iv) in case of Medium and Large Scale Industry having a total investment of more than fifty crores and requiring land upto twenty units, on the recommendation of the High Level

Committee/ Land Audit Committee headed by the Minister in-charge of Large and Medium Scale Industries.



Explanation.—Tiny and Small Scale Industry, Medium and Large Scale Industry shall have the same meaning as defined in Government Order No. CI 130 SPC 96, dated 15-3-1996 or such other order as may in this behalf be issued from time to time.





(b) while making recommendations for exemption the committees specified in clause (a), shall be guided by.—

I. the zonal regulations annexed to the comprehensive development plan or outline development plan under the Karnataka Town and Country Planning Act, 1961 (Karnataka Act 11 of 1963);

II. the suitability of the land for the proposed project of the industrial unit keeping in view the locational aspect, availability of infrastructures like water, power, communication etc., and environmental and ecological aspects; and

III. the extent of land required/ keeping in view the nature and size of the proposed project, financial outlay, capacity of the enterprenuer, technical feasibility and economic viability;

(2)



(a) Exemption under Section 109, for the purpose of Educational Institutions, may be granted on the recommendation of the Deputy Commissioner within whose local limits of jurisdiction the educational institution is situate or in the case of a branch of such institution, such branch institution is situate;



(b) While making recommendation for exemption under this sub-rule, the Deputy Commissioner shall be guided by.—

(i) the zonal regulations annexed to the comprehensive development plan or the outline development plan under the Karnataka Town and Country Planning Act, 1961 (Karnataka Act 11 of 1963);

(ii) the suitability of the land for the proposed purpose;

(iii) the necessity and extent of land required keeping in view the nature and size of the institution.



Explanation.—For the purpose of this sub-rule the term "Educational Institution" shall include a Hostel or a Vocational Educational Institution.





(3)



(a) Exemption under Section 109, for the purpose of places of worship, may be made on the recommendation of the Deputy Commissioner in whose local limits of jurisdiction the place of worship is situate;



(b) While making recommendation for exemption the Deputy Commissioner shall be guided by the following, namely.—

(I) Whether the place of worship is governed by any of the following Acts, namely.—

(i) Religious Endowments Act 1863 (Central Act 20 of 1863);

(ii) The Charitable Endowments Act, 1890 (Central Act 6 of 1890);

(iii) The Coorg Temple Fund, Management Regulation, 1892 (Regulation No. 4 of 1892);

(IV) The Charitable and Religious Trust Act, 1920 (Central Act No. XIV of 1920);

(v) Karnataka Religious and Charitable Institutions Act, 1927 (Karnataka Act 7 of 1927);

(vi) The Bombay Public Trust Act, 1950 (Bombay Act 29 of 1950);

(VII) The Madras Hindu Religious and Charitable Endowment Act, 1951 (Madras Act 19 of

1951);

(VIII) The Wakf Act, 1995 (Central Act 43 of 1995);

(ix) The Hyderabad Endowment Regulation (Fasli 1349) or is registered under the Indian

Trusts Act, 1882 (Central Act 2 of 1882) or under the Karnataka Societies Registration

Act, 1960 (Karnataka Act 17 of 1960) or under any other law for the time being in

force.

(II) The zonal Regulations annexed to the Comprehensive Development Plan or Outline Development Plan under the Town and Country Planning Act, 1961 (Karnataka Act 11 of 1963).

(III) The suitability of the land for the purpose of place of worship, keeping in view the maintenance of peace and harmony. Wherever necessary the Deputy Commissioner shall also obtain a no objection certificate from the concerned local authority.





(4)



(a) Exemption under Section 109, for the purpose of a Housing Project, may be made on the recommendation of the State Level Single Window Agency constituted for this purpose;



(b) While making recommendation for exemption the Single Window Agency shall be guided by the following, namely.—

(i) Whether a no-objection certificate has been obtained by the applicant from the concerned Planning Authority or the Urban Development Authority or Local Authority, as the case may be;

(ii) The financial resources, technical feasibility, economic viability, capacity of the person seeking such exemption, and provision for public utility, playground and such other civic amenities, and availability of water and power supply etc.;

(iii) The comprehensive project report covering all the aspects;

(iv) Suitability of the project from the environmental and ecological aspects;

(v) any other relevant consideration.



(c) Exemption granted under this sub-rule shall be subject to the following conditions.—



(i) Out of the total area available for housing, as per land use classification under Outline Development Plan or Comprehensive Development Plan, published under the Karnataka Town and Country Planning Act, 1961 (Karnataka Act 11 of 1963) or classified by or under any other law providing for regulation of housing activity, thirty per cent of the land shall be earmarked for Low Income Group Housing and twenty per cent for Middle Income Group Housing:

Provided that in the case of a housing project on a land not classified under the Outline Development Plan or Comprehensive Development Plan, the project shall be drawn up in consultation with the Director of Town Planning.

Explanation.—For the purpose of this rule 'Low Income Group Housing' and 'Middle Income Group Housing7 means norms as prescribed by the Housing and Urban Development Corporation from time to time.



(ii) The area meant for roads and parks shall be developed by the applicant in accordance with the project report and then transferred to the Urban Development Authority or the Local Authority, as the case may be;



(iii) Any other conditions as the State Government may specify.





(5)



(a) Exemption under Section 109 for the purpose of Horticulture including Flouriculture and Agro-based industry, shall be made.—



(i) In respect of a project requiring upto two units of land on the recommendation of the District Level Single Window Agency headed by the Deputy Commissioner;



(ii) In respect of a project requiring land in excess of two units but not exceeding ten units, on the recommendation of the State Level Single Window Agency headed by the Principal Secretary to Government, Agriculture and Horticulture Department;



(iii) In respect of a project requiring more than ten units on the recommendation of the High Level Committee headed by the Minister in-charge of Agriculture or the Minister in-charge of Horticulture, as the case may be.



(b) While making recommendation for exemption, the Committee specified in clause (a) above shall be guided by the following, namely.—

(i) The zonal regulations annexed to the Comprehensive Development Plan or Outline Development Plan under the Karnataka Town and Country Planning Act, 1961 (Karnataka Act 11 of 1963);

(ii) The suitability of the land for the proposed project;

(iii) the necessity and extent of land required keeping in view the nature and size of the project, financial outlay, capacity of the enterprenuer, technical feasibility and economic viability.





(c) Exemption under this sub-rule shall be granted subject to the following conditions, namely.—

(I) Total area to be used for non-agricultural purpose like office, cold storage, processing, factory building and staff quarters shall not exceed two units.

(II) The land shall be utilised for.—

(i) growing flowers; or

(ii) demonstration, nursery, research and development activities pertaining to

cultivation of new varieties, stabilisation of process of utilization of agricultural

products etc.; or

(iii) establishment of tissue culture laboratory, genetic engineering facilities etc.; or

(iv) any other purpose which would promote the growth of agro-based industries as

may be specified by the Department of Commerce and industries in

consultation with the Department of Agriculture and Horticulture, as the case

may be.

(III) The land shall not be used for growing any agriculture or horticulture based raw-materials.





RULE38-C Conditions and guidelines of exemption under sub-section (1-A) of Section 109.—





(1) Grant of exemption under sub-section (1-A) of Section 109 shall, depending on the purpose for which the exemption is granted, be in conformity with Rule 38-B, so far as they are not inconsistent with the general provisions of these rules.



(2) All exemptions under these rules shall be granted subject to clearance by the High Power Committee headed by the Chief Secretary constituted under Government Order No. CI 88 SPF 95, dated 4-11-1995 or such other orders made in this behalf from time to time.



(3) The High Power Committee while giving clearance to the project under this rule shall ensure, depending on the purpose for which exemption is sought, that the general conditions laid down under Rule 38-D are also satisfied.









RULE38-D. Application for grant of exemption.—





(1) Every application for exemption under Section 109 shall be made in Form 15-A along with a Court fee of rupees five to the concerned Deputy Commissioner.





(2) Immediately on receipt of the application the Deputy Commissioner shall cause it to be entered in a separate register maintained for each of the category depending on the extent of land sought to be exempted and the purpose for which exemption is sought. [He shall scrutinize the application in Form 15-A and the documents received from the applicant and fill up Form 15-AA] and after following the procedure specified in Rule 38-B, forward the application to the Government.





(3)

(a) The Deputy Commissioner shall after due verification of the application, in all cases, where he is not the recommending authority, transfer the same to the concerned recommending authority which shall along with its recommendation forward it to the Government.



(b) in the case of institution governed under sub-rule (3) of Rule 38-B, the Deputy Commissioner shall send the proposal through the Endowment Commissioner, who shall forward the same to the Government with his views.



(c) in the case of institutions governed under the Wakf Act, 1995, (Central Act 43 of 1995), the Deputy Commissioner shall consult the District Wakf Committee before sending the proposal to the Government.





(4) The exemption of land under these rules shall be subject to the following conditions, namely.—



(i) land shall be utilised for the purpose for which it is exemptee within two years from the date of issue of the Notification exempting the land and the exempted shall immediately after the expiry of two years from such date intimate in writing to the Government/ through the Deputy Commissioner concerned regarding the utilisation of the land for the purpose for which it was exempted. The Deputy Commissioner shall cause verification of the same by an Officer not below the rank of the Tahsildar within three months from the date of receipt of such intimation and shall record such verification in a separate register maintained for the purpose:

[Provided that where the Government is satisfied that for reasons beyond the control of the exemptee, the land is not utilised for the purpose for which the exemption was made, within two years from the date of issue of the notification exempting the said land, it may extend the time-limit further upto two years.]



(ii) The land shall not be appropriated for any purpose other than the purpose for which it is exempted:

Provided that it shall be lawful for the exemptee to obtain loan on the security of the land by creating a mortgage or other charge over his interest in the land, in favour of the Government or any Schedule Bank or a Co-operative Agricultural and Rural Development Bank or a Government company as defined in Section 3 of the Companies Act, 1956 in which not less than 51 per cent of the paid up share capital is held by the State Government or a Corporation owned or controlled by the Central Government or the State Government or both.



(iii) Where the land is exempted for a non-agricultural purpose such land shall be got converted for non-agricultural use under the provisions of the Karnataka Land Revenue Act, 1964.



(iv) Necessary permission shall be obtained from the concerned, if the exempted land falls under the Comprehensive Development Plan or Outline : . Development Plan.



(v) Any other condition as the State Government may by notification specify.








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CASE LAW ON LAND LAWS

KARNATAKA LAND LAWS