Investment Advice

How to Acquire Government Land in India

Government land is not for everyone to invest in or lease; buyers in these situations must adhere to certain procedures. Land is a state subject, so the state government has the authority to determine whether any land it owns will be sold to private buyers. Notably, once such land is acquired, it can be used for various purposes.

State-owned land can only be purchased for designated uses, such as industrial, IT parks, residential development, and agriculture. The following is an overview of the information that you should be aware of regarding government land acquisition and the application process:

Considerations for Buying Government Land 

Here are some important things to remember when purchasing government land: 

  • The state government will publish an official notification whenever it wants to sell any landholdings. 
  • Look out for announcements where land in different states is sold or leased under specific schemes. 
  • You can also check the state website to learn more about any available government land purchase or lease schemes. 
  • You can also submit an official application to the District Collector (DC) of the locality where the land parcel is available. 
  • In your application, be sure to state why you are purchasing the land.
  • If the government has already designated the land for agricultural use, you won’t receive approval. Be sure to thoroughly research the land parcel before applying. 
  • If you are interested in purchasing land to build a home, you should be aware of state government programs that offer land parcels to citizens at reasonable prices; however, these plotted options are only available on a leasehold basis. 
  • You should be aware of several factors and conditions when purchasing land under government programs, including eligibility requirements, domicile status, and lease period. 
  • If the government leases out land, the state will retain final ownership. 
  • You cannot buy government land for profit-making.

What are the reasons you can lease government land? 

The following are some reasons you can lease government land: 

Agricultural purposes

Selling, leasing, and disposing of agricultural land is a state matter with many facets. Each state government has its own rules regarding selling or leasing land to individuals who are not involved in agriculture. The Karnataka Land Revenue Act, for instance, gives the government the authority to sell land it owns to any non-agriculturist; the procedure for acquiring such land entails submitting an application to the local DC, which should include the rationale for the land purchase.

The buyer must begin farming within twelve months of the application, meeting the pre-laid conditions and eligibility requirements. The buyer’s chances of receiving land allotment are contingent upon the quality of the land; non-arable soil and wasteland have lower chances of allotment than land with suitable irrigation and cultivable soil.

House building

Allotment of land parcels in government layouts initiated by lotteries or other mechanisms for general buyers; in the absence of such a scheme, you can still apply to your local land revenue department, asking for an allotment; however, the chances of your application being successful are on the lower side. Government owned land is offered to buyers under various initiatives through government schemes that are announced periodically. Several municipal and city development authorities often release these land-buying schemes.

IT parks and industrial projects

Under state industrial policy, information is available regarding the allocation of land for commercial projects; an application can be moved with a suitable proposal, and leases are the preferred model under these industrial schemes or projects for IT park development.

Bottom Line

Prospective buyers must navigate a series of considerations and steps when venturing into government-owned land acquisition. The importance of staying vigilant for official notifications, exploring state websites for relevant schemes, and submitting detailed applications to the District Collector cannot be overstated. It is crucial to align the intended use of the land with its designated purpose and be aware of state government programs that may offer affordable options for house building.

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Shivam Tomer

Talks about : Real Estate News, Investment Tips, Proptech, Loan tips and Property Tips

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