Land Ceiling in Karnataka

THE KARNATAKA LAND REFORMS ACT, 1961 Section 63. Ceiling on land. - (1) No person who is not a member of a family or who has no family shall, except as otherwise provided in this act, be entitled to hold, whether as land owner, landlord or tenant or as a mortgagee with possession or otherwise or partly in one capacity and partly in another, land in excess of the ceiling area.

1. Substituted by Act No. 34 of 1998 published in the Karnataka extraordinary Gazette on the 5th day of December 1998 w.e.f. 15-12-1998

(2) The ceiling area for a person who is not a member of a family or who has no family or for a family shall be ten units :

Provided that in the case of a family consisting of more than five members the ceiling area shall be ten units plus an additional extent of two units for every member in excess of five, so however that the ceiling area shall not exceed twenty units in the aggregate.

(2-A) The ceiling area for a person who is tenant under clause (b) of sub-section (2) of Section 5 shall be forty units.

(3) In the case of a family the ceiling area shall be applied to the aggregate of the lands held by all the members of the family, including the stridhana land.

(4) In calculating the extent of land held by a person who is not a member of a family but is a member of a joint family and also in calculating, the extent of land held by a member of a family who is also a member of a joint family, the share of such member in the lands held by a joint family shall be taken into account and aggregated with the lands, if any, held by him separately and for this purpose such share shall be deemed to be the extent of land which would be allotted to such person had there been a partition of the lands held by the joint family.

(5) In respect of lands owned or held under a private trust,-

(a) where the trust in revocable by the author of the trust, such lands shall be deemed to be held by such author or his successor in interest; and

(b) in other cases, such lands shall be deemed to be held by the beneficiaries of the trust in proportion to their respective interests in such trust or the income derived therefrom.

Explanation. - Where a trust is partly private and partly public this sub-section shall apply only to lands covered by that part of the assets of the trust which is relatable>

(6) In calculating the extent of land held by a person who is not a member of a family or who has no family or by a member of a family, the share of such person or member in the lands held by a co-operative farm shall be taken into account.

(7) (a) No educational, religious or charitable>

(b) If any question arises where the income from the land is solely appropriated for the institution, society or trust, it shall be decided by the prescribed authority. The decision of the prescribed authority shall be final. Where the prescribed authority decides that the income is not so appropriated, the land held by the institution, society or trust shall be deemed to be surplus land and the provisions of Sections 66 to 76 shall, so far as may be, apply to the surrender to and vesting in the State Government of such land. The provisions of this sub-section shall have effect notwithstanding anything in this Act.

(8) (a) No sugar factory shall hold land except solely for purpose of research or seed farm or both. Where land is held by a sugar factory for such purpose the ceiling area shall be fifty units.

(b) If any question arises whether any land held by a sugar factory is solely used for the purpose of research or seed farm or both, the decision of the prescribed authority shall be final and the land not held for the said purpose shall be deemed to be surplus land and the provisions of Sections 66 to 76 shall, so far as may be, apply to the surrender to and vesting in the State Government of such land. The provisions of this sub-section shall have effect notwithstanding anything contained in this Act.

(9) In the case of any person holding land cultivated by plantation crops, the ceiling area in respect of other land held by him shall be determined taking into consideration, the agricultural land referred to in item (ii) of the Explanation to Section 104.

(10) Notwithstanding anything in the preceding sub-section, if any person has,-

(i) after the 18th November, 1961 and before the 24th January,1971 transferred any land the extent of which if added to the other land retained by him could have been deemed to be surplus land before the date of commencement of the Amendment Act; or

(ii) after the 24th January, 1971 transferred any land, otherwise than by partition or by donation to the Karnataka Bhoodan Yagna Board established under the Karnataka Bhoodan Yagna Act, 1963 (Karnataka Act 34 of 1963) or by sale to the tenant of such land in conformity with any law for the time being in force, then in calculating the ceiling area which that person is entitled to hold, the area so transferred shall be taken into account and the land exceeding the ceiling area so calculated shall be deemed to be in excess of the ceiling area notwithstanding that the land remaining with him may not in fact be in excess of the ceiling area.

If by reason of such transfer the persons holding is less than the area so calculated to be in excess of the ceiling area, then all his lands shall be deemed to be surplus land and the provisions of Sections 66 to 76 shall, as far as may be, apply to the surrender to and vesting in the State Government of such excess land.

Explanation.- For purposes of this sub-section the land shall be deemed to have been transferred if, it has been transferred by act of parties whether by sale, gift, mortgage with possession, exchange, lease or any other kind of disposition made inter vivos.

Section 64. Future acquisition of land. Where on account of transfer, gift, purchase, exchange, mortgage with possession, lease, surrender or any other kind of transfer inter vivos or by bequest or inheritance, partition or otherwise, any land is acquired or comes into possession of any person or family after the date of commencement of the Amendment Act and in consequence thereof the total extent of land held by suchperson or family exceeds the ceiling area permitted under Section 63, the excess land shall be deemed to be surplus land, and the provisions of Sections 66 to 76 shall, as far as may be, apply, to the surrender to and vesting in the State Government of such excess land.

Explanation. - In this section bequest includes -

(i) gift made in contemplation of death; and

(ii) gift to take effect after the happening of any event.

Section 74. Prohibition of alienation of holding. -On and from the date of commencement of the Amendment Act no person owning land in excess of the ceiling limit specified in Section 63 or 64 shall alienate his holding or any part thereof by way of sale, gift, exchange or otherwise until he has furnished a declaration under Section 66 and the extent of land if any, to be surrendered in respect of that holding has been determined and an order has been passed under Section 67 and any alienation made in contravention of this section shall be null and void.

Acquisition of land by certain persons prohibited / Karnataka Land Reforms (Amendment) Act 2015

Section 79-A. Acquisition of land by certain persons prohibited.  

 - (1) On and from the commencement of the the Karnataka Land Reforms (Amendment) Act, 1995, no person who or a family or a joint family which has an assured annual income of not less than 1[rupees two lakhs] from sources other than agricultural lands shall be entitled to acquire any land whether as land owner, landlord, tenant or mortgagee with possession or otherwise or partly in one capacity and partly in another.

1. Substituted for the words rupees fity thousand by Act No.31 of 1995 w.e.f. 20-10-1995.

Please Note :

1) KARNATAKA LAND REFORMS ACT 1961, (Karnataka Act No.10 of 1962) AS AMENDED BY ACT NO.1 & 31 OF 1991 - Section 79A - Interpretation by reference to entire provisions as amended by Act 1 of 1991 - Must be held Rs.50,000/- always in enactment - From 1.3.1974, no acquisition of agricultural land if Income from non-agricultural sources in excess of Rs.50,000/-.

HELD - Whenever an Amended Act has to be applied subsequent to the date of amendment, the various unamended provisions of the Act have to be read along with the amended provision as though they are part of it The amended part of the provision having got incorporated into the Act the provision of Section 79A of the Act as such should be read. Section 79A of the Act has the opening words on and from the commencement of the Amended Act. The amended Act, is defined to be Act 1 of 1974 which came into effect from 1.3.1974. From that date, no one can acquire an agricultural land if his income from sources other than agricultural lands is in excess of Rs.50,000/-... The interpretation to be placed on Section 79A of the Act is only by reference to the entire provisions of the Section as amended by Act 1 of 1991 and it must be held that the said words Rs.50,000/- as always being there in the enactment because the language of the Section permits no other construction. [Vijayakumar Sankrayya Sardar Vs State of Karnataka w.p.No. 20403 of 1991 dated 16th August 1993 : ILR 1993 KAR 2586].

2) It has been noticed that the Vijayakumar Vs State, ILR 1993 Kar. 2586, the Division Bench has held that the amendments effected by Acts 1 & 31 of 1991, substituting the words Rs.12,000-00 with the words Rs.50,000/- got incorporated into Section 79A and the amendments are effective from 1.3.1974, but not from the date of amendment Acts 1 and 31 of 1991.

Act 31/1995, has substituted the words Amendment Act with the words the Karnataka Land Reforms (Amendment) Act, 1995 and also substituted the words Fifty thousand, with the words Two lakhs. The legislature has made its intention very clear as to the prospective nature of the amendments. For this purpose the words the Karnataka Land Reforms (Amendment) Act 1995 have been substituted, for the words amendment Act, which according to Section 2A(4) means Karnataka Land Reforms (Amendment) Act 1973. Now the amendments clearly state that the amendments should take effect from the date of commencement of Act 31/1995, which has come into force on 20-10-1995.

(2) For purposes of sub-section (1) -

(i) the aggregate income of all the members of a family or a joint family or a joint family from sources other than agricultural land shall be deemed to be income of the family or joint family, as the case may be, from such sources;

(ii) a person or a family or a joint family shall be deemed to have an assured annual income of not less than rupees two lakhs from sources other than agricultural land on any day if such person or family or joint family had an average annual income of not less than rupees two lakhs from such sources during a period of five consecutive years preceding such day.

Explanation. A person who or a family or a joint family which has been assessed to income tax under the Income Tax Act, 1961 (Central Act 43 of 1961) on an yearly total income of not less than rupees two lakhs for five consecutive years shall be deemed to have an average annual income of not less than rupees two lakhs from sources other than agricultural lands

(3) Every acquisition of land otherwise than by way of inheritance or bequest in contravention of this section shall be null and void.

(4) Where a person acquires land in contravention of sub-section (1) or acquires it by bequest or inheritance he shall, within ninety days from the date of acquisition, furnish to the Tahsildar having jurisdiction over the Taluk where the land acquired or the greater part of it is situated a declaration containing the following particulars, namely:

(i) particulars of all lands;

(ii) the average annual income of himself or the family;

(iii) such other particulars as may be prescribed.

(5) The Tahsildar shall, on receipt of the declaration under sub-section (4) and after such enquiry as may be prescribed send a statement containing the prescribed particulars relating to such land to the Deputy Commissioner who shall, by notification, declare that with effect from such date as may be specified in the notification, such land shall stand transferred to and vest in the State Government without further assurance free from all encumbrances. From the date specified in such notification the Deputy Commissioner may take possession of such land in such manner as may be prescribed.

(6) For the land vesting in the State Government under sub-section (5), where the acquisition of the land was by bequest or inheritance, an amount as specified in Section 72 shall be paid and where the acquisition was otherwise than by bequest or inheritance, no amount shall be paid.

Acquisition/Purchase of land by certain persons prohibited

Section 79-A. Acquisition of land by certain persons prohibited. - (1) On and from the commencement of the the Karnataka Land Reforms (Amendment) Act, 1995, no person who or a family or a joint family which has an assured annual income of not less than 1[rupees two lakhs] from sources other than agricultural lands shall be entitled to acquire any land whether as land owner, landlord, tenant or mortgagee with possession or otherwise or partly in one capacity and partly in another.

1. Substituted for the words rupees fity thousand by Act No.31 of 1995 w.e.f. 20-10-1995.

Please Note :

1) KARNATAKA LAND REFORMS ACT 1961, (Karnataka Act No.10 of 1962) AS AMENDED BY ACT NO.1 & 31 OF 1991 - Section 79A - Interpretation by reference to entire provisions as amended by Act 1 of 1991 - Must be held Rs.50,000/- always in enactment - From 1.3.1974, no acquisition of agricultural land if Income from non-agricultural sources in excess of Rs.50,000/-.

HELD - Whenever an Amended Act has to be applied subsequent to the date of amendment, the various unamended provisions of the Act have to be read along with the amended provision as though they are part of it The amended part of the provision having got incorporated into the Act the provision of Section 79A of the Act as such should be read. Section 79A of the Act has the opening words on and from the commencement of the Amended Act. The amended Act, is defined to be Act 1 of 1974 which came into effect from 1.3.1974. From that date, no one can acquire an agricultural land if his income from sources other than agricultural lands is in excess of Rs.50,000/-... The interpretation to be placed on Section 79A of the Act is only by reference to the entire provisions of the Section as amended by Act 1 of 1991 and it must be held that the said words Rs.50,000/- as always being there in the enactment because the language of the Section permits no other construction. [Vijayakumar Sankrayya Sardar Vs State of Karnataka w.p.No. 20403 of 1991 dated 16th August 1993 : ILR 1993 KAR 2586].

2) It has been noticed that the Vijayakumar Vs State, ILR 1993 Kar. 2586, the Division Bench has held that the amendments effected by Acts 1 & 31 of 1991, substituting the words Rs.12,000-00 with the words Rs.50,000/- got incorporated into Section 79A and the amendments are effective from 1.3.1974, but not from the date of amendment Acts 1 and 31 of 1991.

Act 31/1995, has substituted the words Amendment Act with the words the Karnataka Land Reforms (Amendment) Act, 1995 and also substituted the words Fifty thousand, with the words Two lakhs. The legislature has made its intention very clear as to the prospective nature of the amendments. For this purpose the words the Karnataka Land Reforms (Amendment) Act 1995 have been substituted, for the words amendment Act, which according to Section 2A(4) means Karnataka Land Reforms (Amendment) Act 1973. Now the amendments clearly state that the amendments should take effect from the date of commencement of Act 31/1995, which has come into force on 20-10-1995.

(2) For purposes of sub-section (1) -

(i) the aggregate income of all the members of a family or a joint family or a joint family from sources other than agricultural land shall be deemed to be income of the family or joint family, as the case may be, from such sources;

(ii) a person or a family or a joint family shall be deemed to have an assured annual income of not less than rupees two lakhs from sources other than agricultural land on any day if such person or family or joint family had an average annual income of not less than rupees two lakhs from such sources during a period of five consecutive years preceding such day.

Explanation. A person who or a family or a joint family which has been assessed to income tax under the Income Tax Act, 1961 (Central Act 43 of 1961) on an yearly total income of not less than rupees two lakhs for five consecutive years shall be deemed to have an average annual income of not less than rupees two lakhs from sources other than agricultural lands.

(3) Every acquisition of land otherwise than by way of inheritance or bequest in contravention of this section shall be null and void.

(4) Where a person acquires land in contravention of sub-section (1) or acquires it by bequest or inheritance he shall, within ninety days from the date of acquisition, furnish to the Tahsildar having jurisdiction over the Taluk where the land acquired or the greater part of it is situated a declaration containing the following particulars, namely:

(i) particulars of all lands;

(ii) the average annual income of himself or the family;

(iii) such other particulars as may be prescribed.

(5) The Tahsildar shall, on receipt of the declaration under sub-section (4) and after such enquiry as may be prescribed send a statement containing the prescribed particulars relating to such land to the Deputy Commissioner who shall, by notification, declare that with effect from such date as may be specified in the notification, such land shall stand transferred to and vest in the State Government without further assurance free from all encumbrances. From the date specified in such notification the Deputy Commissioner may take possession of such land in such manner as may be prescribed.

(6) For the land vesting in the State Government under sub-section (5), where the acquisition of the land was by bequest or inheritance, an amount as specified in Section 72 shall be paid and where the acquisition was otherwise than by bequest or inheritance, no amount shall be paid.

Section 79-B. Prohibition of holding agricultural land by certain persons. - (1) With effect on and from the date of commencement of the Amendment Act, except as otherwise provided in this Act, -

(a) no person other than a person cultivating land personally shall be entitled to hold land; and

(b) it shall not be lawful>

(i) an educational, religious or charitable>

(ii) a company;

(iii) an association or other body of individuals not being a joint family, whether incorporated or not; or

(iv) a co-operative society other than a co-operative farm, to hold any land.

(2) Every such institution, society, trust, company, association, body or co

operative society;-

(a) which holds lands on the date of commencement of the Amendment Act and which is disentitled to hold lands under sub-section (1), shall, within ninety days from the said date furnish to the Tahsildar within whose jurisdiction the greater part of such land is situated a declaration containing the particulars of such land and such other particulars as may prescribed; and

(b) which acquires such land after the said date shall also furnish a similar declaration within the prescribed period.

(3) The Tahsildar shall, on receipt of the declaration under sub-section (2) and after such enquiry as may be prescribed, send a statement containing the prescribed particulars relating to such land to the Deputy Commissioner who shall, by notification, declare that such land shall vest in the State Government free from all encumbrances and take possession thereof in the prescribed manner.

(4) In respect of the land vesting in the State Government under this section an amount as specified in Section 72 shall be paid.

Explanation.- For purposes of this section it shall be presumed that a land is held by an institution, trust, company, association or body where it is held by an individual on its behalf.