Precautions Before Buying Agricultural Land Granted to SC/ST Persons in India
Precautions Before Buying Agricultural Land Granted to SC/ST Persons in India
Updated for 2025 | By Mahantesh.G, Advocate
Introduction
Buying
agricultural land in India can be a profitable venture. However, if you're
planning to purchase land that was originally granted to a Scheduled Caste (SC)
or Scheduled Tribe (ST) person, you need to proceed with extreme caution.
Why? Because such lands are governed by special protective laws like the
Karnataka Scheduled Castes and Scheduled Tribes (Prohibition of Transfer of
Certain Lands) Act, 1978 (popularly known as the PTCL Act). These laws impose
serious restrictions on sale or transfer of granted lands. Violation can lead
to cancellation of the transaction—even after registration—and loss of the
property without compensation.
What Are SC/ST Granted Lands?
These
lands are granted by the government to SC/ST beneficiaries under land reforms
and welfare schemes. The purpose is to improve social equity and secure
economic stability for marginalized communities.
To prevent exploitation, most grants come with non-alienation clauses, meaning
the grantee cannot sell or transfer the land for a specified number of years—or
in some cases, permanently—without government permission.
What Is the PTCL Act?
The PTCL Act, 1978 came into force in January 1979 in
Karnataka. It aims to:
- Prohibit the transfer of granted lands without prior permission from the
government.
- Restore such lands to the original SC/ST grantees or their legal heirs if
illegally transferred.
- Protect the rights of SC/ST grantees even if the sale happened decades ago.
Effect on Past Transfers
-
Without Violation : If the sale was done after the restriction period and with
proper permission, the transfer is considered legal.
- With Violation: Any transfer without permission during the restriction
period—whether registered or not—is considered void. The land can be reclaimed
by the government and restored to the original grantee or their heirs, and the
purchaser gets no compensation.
Top 7 Precautions Before Buying SC/ST Granted Land
1. Verify the Grant Order and Title Origin
Ask for the original government grant order. Confirm whether the seller obtained the land through grant, sale, or inheritance. If it's a granted land, check if it's still under restriction.
2. Check the Restriction Period
Review the grant order to know the non-alienation clause—usually 15, 25, or 30 years. If the period hasn't expired, the land cannot be sold legally.
3. Demand Government Sale Permission
If the land is still under restriction, the seller must obtain prior written permission from the District Collector or Deputy Commissioner. Ask for a certified copy of this permission. Never rely on verbal assurances.
4. Conduct Detailed Legal Due Diligence
Hire a property lawyer to check: RTC and Pahani (record of rights), Mutation records, Encumbrance Certificate (EC), Caste certificate of original grantee, Complete title deed chain.
5. Check for Land Restoration Proceedings
Visit the Tahsildar or Assistant Commissioner’s Office to confirm: No restoration proceedings are pending under PTCL Act. The land has not been illegally sold in the past.
6. Avoid GPA or Agreement Sales
For granted lands, Power of Attorney or Sale Agreements without a registered sale deed and permission are legally invalid. Don’t take possession or make payments based on unregistered documents.
7. Beware of Benami Transactions
Ensure the seller is the real owner, not a front for someone else. Benami deals involving SC/ST lands are punishable and can be voided.
What If You Ignore These Rules?
- Sale is null and void under the PTCL Act—even if
registered.
- Land can be restored to the original grantee or heirs.
- You lose all money paid—no refund or compensation.
- You may face criminal charges under land reform and atrocity laws.
- No home loan will be sanctioned on such land.
- You can’t get conversion or building plan approval.
What to Do After the PTCL Act Enforcement?
If you're planning to purchase land that was granted to an
SC/ST person, do the following:
- Confirm expiry of restriction period in the grant order, apply for prior permission to purchase the land
from the Deputy Commissioner.
- Ensure the sale deed clearly mentions government approval, and that it's registered after receiving permission.
Conclusion
Buying SC/ST granted agricultural land may seem attractive
due to lower prices, but it carries high legal risk. The PTCL Act overrides all
previous transfers done in violation of grant conditions—even if decades old.
Disclaimer:
This blog is intended for educational and informational purposes only and does not constitute legal advice. Property laws vary by state and situation. For tailored legal assistance, consult a qualified advocate or property law expert in your area.
Written by:
Mahantesh G.
Advocate – Property and Real Estate Law
📞 6362015266
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