Rules and restrictions for agri land.

Buying agricultural land through a bank auction is tricky because the SARFAESI Act typically does not apply to agricultural land (Section 31(i)). However, this exemption is often debated in courts regarding whether the land is 'actually' used for agriculture.

Who can buy?

In states like Karnataka, Maharashtra, and Gujarat, only a registered agriculturist (someone who owns farm land) can buy agricultural land. Being an auction high bidder does not exempt you from this state law. If you are not a farmer and you win the bid, the revenue department will refuse to register the land in your name.

Conversion Potential

If the land is agricultural but falls in a 'Yellow Zone' (Residential Zone) in the master plan, it is a goldmine. You can buy it (if eligible) and convert it for huge potential gains.