Saturday, April 20, 2013



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 12th 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


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