Observe precautions before buying farm- lands in Maharashtra

Lately, a lot of announcements on the transformation of agricultural or non agricultural (NA) land into farm houses or weekend homes are doing the rounds. These proclamations are mostly directed to lure the NRI and expat community. Magicbricks comes forward to assist the targeted buyers to make good investments without being cheated of their hard earned money. Magicbricks spoke with several industry experts to better equip prospective investors into making a well thought decision.
As per the Lands of Maharashtra Act, agricultural land is not meant for the development of weekend/farm houses. Transfer of agricultural land to a non agriculturist is barred under Section 63 of the Bombay Tenancy and Agricultural Lands Act, 1948. Also, Section 65 states that the land can be taken over by the Government for management if it remains uncultivable for any two consecutive years.

How have these developers been able to offer land?

“Land in villages along the National Highway 3 (NH3) (Old & New) in Bhiwandi Taluka have been used to develop gated communities. These are either converted lands or those that are co-owned by the original owner for a certain long period. Development of villas and weekend homes is rampant here,” says S Singh, of Shree Ganesh Real Estates, a local broker active in these deals.

However, several of these areas have witnessed disorganised development due to the mushrooming of independent developers resulting in uncoordinated planning.

Some basic factors that one needs to keep in mind before buying properties include:

• Authenticity of land ownership: “Never buy land which says proposed NA,” says Rama Mehra, freelance property consultant who focusses on the NRI and expat segments. “Always opt for land which has already been converted.” Avoid schemes that ask you to pay now with the promise of conversion after about  3-4 years

• Checking the NA: In Maharashtra, land is divided into two key segments agricultural and non-agricultural. Only farmers or whose parents are farmers can buy an agricultural plot while others have the only option to buy a NA plot. But the NA category in itself comprises of industrial, commercial or even vacant sub categories. An NA permit obtained for one cannot be used for any other purpose

• The Zone of the land: A land in the forest or even in the penumbra region of a forest or a national park is a high risk investment. These are classified as G-zones. The best way to ensure safety in these transactions is to look for `R-Zone’ which denotes demarcated for residential development,” says Mehra

• Checking the 8/A extract document: This comes in the form of a booklet and contains the details of Payments of Land Revenue tax, types of crop taken, owner’s name, etc. all about the targeted land

• Land Revenue Tax Receipts: They are issued to the agriculturists by the Talathin/ Tehsildar upon payment of Land-Revenue Tax and if there are any pending cases. This coupled with the `extract documents’ should help give you a complete picture of the land and its ownership status

• Comparing village records & Block Plan:  This helps you to see where the property is located. Comparing this with the documents given by the developer helps prospective buyers gain information about the authenticity of the deal.

Kanchana Dwarakanath is an integrated communications professional with diverse experience in journalism & Marketing Communications. Her current focus areas include real estate, infrastructure, urban management and the skill development market.