PURCHASING AGRICULTURAL LAND

PURCHASING 
AGRICULTURAL LAND

Purchasing of land is always considered a safe avenue of investment. Generally purchase of land is made for speculation as investment point of view and in some cases for cultivation of agricultural and horticultural crops. As land is scarce resource hence its demand always exists, the price range may vary with the flow of cash in economy.

In the present cycle of economy there is great slump in real estate market. The prices of property already corrected a lot. Investment in land for speculation point of view is not a profitable business from last two years. Hence investors are thinking on investment in agricultural land for cultivation point of view , in which agri farms can be developed and which can be sold in future on high premium.

While purchasing the agriculture land for cultivation purpose following revenue and non-revenue related points should be considered.

The location of land is most important. The land should be ideally located near the road so that agri machinery should reach to farm easily. Most crucial point to be considered that land should be connected with road, in revenue terms it is called “Raah”, means there should be raah to land, without the access of raah there is no use of land, and owner cannot use some others land to perform the intercultural operations of agriculture/ horticulture.

The purchaser of land should ensure that there is regular source of irrigation water. This may be either through canal linkage or tubewell in the land. In some areas where water level is very low, the permission to dig deep tubewell or submersible pump is not granted by irrigation department, these areas are marked as red zone. Hence purchasing of land in these areas is of no use.

Prices of agricultural land are always remains a key point while purchasing of land. In states like himachal, government has issued direction regarding circle rates of land in different districts. These are called the average rates or salana ausat of agriculture land, on which registration of sale deed is done. The rates are calculated on the basis of distance of land from connecting road and type of road as well. There are different rates for land upto 25 meters far from road, from 25 to 50m from road and more than 50 meters. The rates are notified be deputy commissioner and are valid for one year. The registration is made on these rates. At present in Himachal stamp duty is 5% registration charges are 2%. Hence the location of land is very crucial in terms of its price. It is pertinent to mention here that non himachali cannot purchase any type of land in himachal. They have to obtain permission under section 118 from government.

While purchasing of land the revenue related issues as mentioned in my previous posts should be considered regarding its type, ownership and possession. One important point to be considered after purchase of land is that the red ink entry of mutation should be ensured in 12^th column of jamabandi. A copy of jamabandi having mutation entry with signature and stamp of concerned patwari should be kept in own record for reference in future.

In addition of above points some other important points should be considered which will be elaborated in my future posts. Your valued suggestions are always welcome. You can also send your queries and suggestions on my mail anil.chauhan2@gmail.com.

Revenue Area in Metric System

Revenue Area in Metric System

Now a days Government is emphasizing on the computerization of  revenue record. Almost all the states are doing it aggressively. In the first phase, the jamabandi is converted in electronic form and later on the map ( chajra/ tatima/ masabi/ latha) are also to be converted into electronic form through remote sensing.

The computerized jamabandi is also readily available in Sugam Centres or designated offices. It is proposed to make them available at LOK MITRA KENDRAs. This would be a great help to general public. 

In most of computerized record the area is mentioned in metric system instead of Kanal Marla or Bigha Biswa. The metric system is very easy to understand and to calculate. In a standard Jamabandi area is written in  Hectare. As we know one Hectare is equal to 10,000 sq. meter. So we can easily convert sq meters into Kanal Marla, Bigha Biswas or even in Sq feet. 

The format is written as 01-00-00 Hectare for area of one hectare. For area of 800 sq meter is written as 00-08-00 Hectare, similarly 25 square meter is written as 00-00-25 Hectare and so on. 

The conversion formulas are already posted in first post of blog. In Himachal (particulary in upper Himachal including Shimla, Solan, Sirmour, Kinnaur) etc the area  of one bigha is approximately 753 sq meter.

How to read a Jamabandi ……(fard, revenue record)

How to read a Jamabandi ……(fard, revenue record)

Jamabandi is the most important document of revenue record. It is known by different name like fard, parcha or many other different names in different areas, but most common name is JAMABANDI. It is believed that reading of jamabandi is a very specialized task of revenue officials and far away from the knowledge of general masses. It is also misappropriated that reading of jamabandi or acquiring the knowledge of revenue record is only limited to revenue official especially patwari or kango and other do not have any need for it. 

But in present circumstance when everybody who is involved in buying and selling property, agricultural land on regular or occasional basis, getting loan on movable or immovable property or offering any guarantee of any loan/ credit whether short term working capital loan, medium term loan or long term loan, everybody should have a basic knowledge of revenue record. It not only helps to boost the confidence of investor of borrower but also save him from fraud, misappropriation or any other litigation.

Coming back to jamabandi, this record expresses a lot of things. Instead of showing the ownership and possession, jamabandi also gives knowledge about type of land, its holding status, source of irrigation if cultivated, the type of structure built on it, the nature of owner, location of land, its fragmentation type and a lots of other things.

In general a Jamabandi is having 12 (twelve) columns. Each column depicts unique information. The information in some columns is very very important and in some column it is of less importance.

On the top of jamabandi the information like Hadbast number (it is the number of boundary of revenue village), year of jamabandi (generally jamabandi is made after every four years) name of village, tehsil and district are mentioned.

The first column of jamanadi is the Khewat number or number khewat. It is the number of owner/owners of land. It is written by black ink. This number is subject to change in next jamabandi. Sometimes a number in red ink is mentioned in this column, it is the number of khewat in last jamabandi mentioned for reference only. A term MIN is mentioned sometimes, it means the part of whole khewat number which is divided into parts. The detail description of khewat number is mentioned in column 4 or we can say that the owners mentioned in column number 4 are having one khewat number which is mentioned in column number 1.

The second column of jamabandi is Khatauni Number or Number Khatauni. It is the number of possessioner or cultivator of land. The description of cultivator or possessioner is mentioned in column number 5. We can say that the cultivator or possessioners mentioned in column number 5 are having khatuani number which is mentioned in column number 2.

In column number 3 Patti, Taraf or numberdar are mentioned. This column is ment for providing the information about physical location of land. In many villages particular cast is living in patti, hence the name of patti is mentioned as per their cast. Sometimes the location is identified through its numberdar, but the only objective is to find the location of land.

In column number 4 the detail of owners of land is mentioned. It is mentioned by writing the name of owner his/ her father and grandfather. Upto grandfather is taken to ensure the identity of owner, as same name can be of different person in same village. The number of ownership is mentioned in column number 1 as khewat number. When the owner is adopted one then the term “MATVANA” is used. If the land is in name of panchayat/ trust/ wakf board/ shamlat (common rights of villagers) then their name is mentioned in this column. In some cases when the land was sold/ transferred/  gifted in last jamabandi, it is also mentioned in this column. If the transfer is made in current jamabandi period then its entry is made in column number 12 (remarks column) then the description in column number 12 is final, and entry of column number 4 carries no weight. It will be discussed in detail in column number 12 description.

In column number 5 the detail of possessioner or cultivator is mentioned. If the owners mentioned in previous column are also the possessioner or cultivator of land then the term “ Khudkast (kast means cultivation) va Makboja Malkan “ is mentioned. If it is not the case then the term “Gair Marusi” means temporary unauthorized possessioner as “Kache Mujahire” is mentioned. If it is “Gair Dakhildaar” then it is permanent unauthorized possessioner. Sometimes these possessions are given intentionally to the workers (called as SIRIs) to avoid to come under land ceiling act. But the title is not clear in such cases.

In column number 6 Naam chah etc is mentioned which is not at all important.

In column number 7 number khasra is mentioned. This is the important column of jamabandi. Number Khasra is the number of land holding, which remain same in all the jamabandi. If it is divided in parts it is written as khasra number 1/1, ½ when khasra number is divided in two parts. When khasra number 1/1 is again divided in two parts then it will become 1/1/1 and 1/1/2 and so on. It must be remembered that khasra number will never be changed. If the measurement is in kanal marla system then first murrabha number/ mushkeel number/ rectangle number is written in red ink underlined by two straight parallel lines then khasra numbers are written in black ink. In case of bigha- biswa system only khasra numbers are written with black ink. There is no murrabha number in bigha biswa system. Total number of khasras are mentioned in the end as kittas. E.g. if there are 15 khasras in one khewat then at end total kitta are mentioned as 15.

In column number 8 the area of each khasra is mentioned. Mostly the maximum area is 8 kanal 0 marlas (means one acre). But when the land is not cultivated or hill or desert. Then total area is mentioned in one khasra also which may exceed one acre. Type of land is also mentioned below the area of khasra. If it is not cultivated or some building is constructed over it then “gair mumkin” is written, when irrigated by wells then “Chai” is written, when irrigated by canal, then “Nehri” or “abbi” is written, when it is rainfed then “Barani” is written. In some areas the direction of this piece of land is also mentioned here like “Charda” is written for east direction (rising side of sun) “neevan” for west side, “Pahar” for north side (Himalaya side) and “Dariya” for south side. Sometime type of cultivation is also mentioned like “Bagicha” ( orchard), “Poplar”, Sarkanda or Munji is also written in this column. The total of areas is made at the end of khatuni and then Khewat. It must be noted that total of Kita and area should tally at end of each Khatuani and total of Khatuani should tally at end of Khewat. The khasra and area are not changed in next or previous jamabandi, as the area of land remains constant.

In column number 9, 10 and 11 the detail of lagan etc are mentioned but not important for transaction motive, but its importance may vary from area to area. 

Column number 12 is most crucial column in jamabandi. It is a remarks column and any entry made in this column may change the status of owernership or possession of land. The entry in this column is made through red ink and every entry is having one specific reference number or intkaal number or rapat number. All entries pertaining to sale purchase or any other type of transaction in current jamabandi period is mentioned in this column. In next jamabandi these entries are transferred to khewat or khatunai column of jamabandi. The common practice of entry in this column is like “ Baruae rapat or intkaal number (reference number), date, wallon (by) tranferrer name Bahak or bae (sold)/ rehan (pledge means given possession)/ aadrehan (without possession)/ Hiba (gift deed)/vasihiat (will) etc. khasra number (so and so) kul (total) kita and area banam (in name of) buyer, bank etc.  for amount  (such and such) kar diya hai (have done it). These are followed by signature of patwari or revenue officer.

At last the patwari/ revenue officer give the undertaking as “Tasdik kiya jata hai ki Nakal Mutabik Asal hai” means certify as true copy. Sometime also mention about the fee paid by the applicant for this copy. Now a days computer generated attested copies are also available. But in some area these are very lengthy and unable to understand. 

But the patwari record is the actual and lasted updated record available. It is recommended that while purchasing any land it should be ensured that its entry has been made in records of concerned patwari and is advisable to keep a copy of your transaction entry in your records.

It is a general practice that after the registry is made in sub registrar office, its entry will be made in intkaal registar and the copy of intkaal is issued, its entry is then made in rognamcha (daily diary) of patwari. Then patwari make this entry in jamabani. Until then the entry is made in jamabandi of patwari, the chances of double sale of property, double mortgage of same land to different banks, double charge over same property and occurrence of other fraudulent activity may be there. Hence red ink entry of mutation should be ensured in jamabandi of patwari. In the case of double entry on same property the then the right of person having first entry is the first. 

Sometime when the land is dispersed in different khasras and mutation has been made then only the detail of mutation or rapat is mentioned in main khewat where the area is maximum and only the mutation and rapat number is mentioned in rest khewats. In this case it is advisable to check the complete details of mutation or rapat of that number when the khasra in question is in process of purchase or transfer. Ignoring the number may cause severe consequences in future and drag the property in dispute.

So these are the basics of jamabandi. The terminology and process may vary from location to location. This type of terminology or process is prevalent in north part of India particularly Punjab, Haryana, North part of Rajasthan, Jammu, and part of Himachal Pradesh.

Your feedback and suggestions regarding any omission or mistake are welcome.   

Good Banking Record, Credit History or Bank History & its Effects

Good Banking Record, Credit History or Bank History & its Effects

This article is helpful for those, who want to raise any type of loan like Personal Loan, Business Loan, Loan Against Property(LAP), Education Loan, House Loan, Agriculture Loan, Credit Card or to offer any type of guarantee or to have a good track record for future borrowing from bank, NBFC ( Non-Banking Finance Company) or other financial institution.

 

Anyone would like to have good record in every field whether it is personal or non-personal. The reason for this is to build good relationship and enjoy the benefit in future. Any negative feedback in track record will have adverse effect on future relationship. Similar is the case with financial institutions, banks or NBFCs.

The relationships with these institutions are of two types i.e. for credit/ loan purpose or for deposit purpose. Banks generally welcome the deposit without any hassle or even reward with different kinds of benefits or privileges but in case of credit these banks and other institutions are very cautious. This is necessary because bank advance the depositors money to earn interest on it for payment of interest to depositor and to earn profit.

Credit is an important need to a person or businessmen to meet the personal and business requirement. But if the loan case declined, it has a very depressing impact on personal and business front and force the needy to borrow funds at high rate of interest which disturb the financial position.

The decline of loan case may be of different reasons, but the most common is the unsatisfactory bank record or credit history. This might be in the knowledge of applicant of loan or not. A small mistake or negligence cost dear.

Now almost all the banks or financial institutions are well connected through networking and data can be accessed from anywhere. There are specialized hubs which stores the data of every individual and banks can easily access the data from there hubs. If there is any discrepancy in saving account like non maintenance of minimum balance in account, bouncing of checks, unpaid installments of loans, penal interest applied on earlier or other loan account, delay in payment of credit card bills or any other utility payments it shows bad match when query is raised. This ultimately results in decline of loan case.

These negative match are sometime intentional and sometime non intentional. In India this data is stored in CIBIL or in banks internal de-dupe. When the applicant is aware of his credit rating or banking track record, then he/ she should forward the application for loan. In case it comes to the knowledge of applicant regarding bad credit history, it should be rectified first. To update the record in CIBIL, application should be filed to update the credit record and after ensuring its correctness, case should be forwarded to bank for further processing.

It is also advised that one should maintain his/her banking history well. Timely repayment of loans, credit card bills and other utility bills should be ensured. The saving bank account statement or passbook should be checked regularly and any discrepancy should be rectified within time. Financial literacy should be ensured in this connected world, who knows when the need for finances arises at the once. A small mistake will affect the future of child if educational loan is declined or will shatter the dreams of own home if home loan is not approved.

This practice will help the applicant to get sanction the loan in hassle free manner and will help to prevent from unnecessary bothering.