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South Indian states finalize regulations for agricultural land transactions

Karnataka has implemented strict regulations on agricultural land purchases, allowing only non-agriculturists with an annual income exceeding ₹25 lakhs to buy land. In contrast, Tamil Nadu permits families of five to own up to 15 acres, highlighting the varying approaches to land ownership across southern India.

BRIC Team
BRIC Team
May 30, 2026 · 2 min read
South Indian states finalize regulations for agricultural land transactions

Key Takeaways

  • Karnataka requires non-agriculturists to have an annual income exceeding ₹25 lakhs to purchase agricultural land.
  • In Tamil Nadu, a family of five can own up to 15 standard acres under the 1961 Land Reforms Act.
  • Telangana and Andhra Pradesh allow a family of five to hold one standard holding of agricultural land, with limits based on family size.
  • Kerala permits an adult individual to own up to five standard acres of agricultural land, increasing with family size.
  • Karnataka's regulations contrast sharply with other southern states, which have more lenient agricultural land transaction laws.

In South India, purchase and sale of agricultural land are governed by distinct regulations across several states, including Karnataka,Tamil Nadu,Telangana,Andhra Pradesh,and Kerala. Each state has its own set of rules that dictate who can buy agricultural land and under what conditions .

Karnataka imposes strict limitations on non-agriculturists seeking to acquire agricultural land . Only those with an annual income exceeding ₹25 lakhs are eligible to purchase . The Karnataka Land Reforms Act of 1960 establishes specific ceiling limits for various uses of agricultural land. For instance,the ceiling for industrial development has increased from 20 to 40 units,while educational institutions can now utilize up to 8 units,up from 4 . The Deputy Commissioner has the authority to grant permissions for land use,which can vary based on the purpose.

In contrast, Tamil Nadu has fewer restrictions on the buying and selling of agricultural land. However,it does enforce a ceiling on land ownership. According to the Land Reforms (Ceiling on fixation of land) Act of 1961,a family of five can own up to 15 standard acres,while families with more members can acquire additional land,capped at 30 standard acres overall. Notably, women receiving land as stridhan can claim an additional 10 acres . Companies engaged in industrial or commercial activities can own up to 15 acres,while public trusts have varying limits based on their nature.

Telangana and Andhra Pradesh, though separate states now,share similar regulations inherited from undivided Andhra Pradesh. Both states maintain a ceiling on agricultural land holdings, which is determined by the number of family members. A family of five can hold one standard holding, with additional members allowed to claim a fraction of a standard holding, but not exceeding two standard holdings collectively .

Kerala also lacks restrictions on the purchase and sale of agricultural land. However,it does impose ceiling limits based on family size. An adult individual can own up to five standard acres,while families of two to five members can hold ten acres. For larger families, the limit increases with each additional member,but overall ceilings apply to ensure no one exceeds the specified limits.

Overall,while Karnataka stands out for its stringent regulations, the other southern states exhibit a more lenient approach to agricultural land transactions. These laws reflect a balance between promoting agricultural development and protecting the interests of local farmers.

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