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

#legalopinion

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