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The Historical facts about Land ownership in India

The Historical facts about Land ownership in India

Land ownership reforms in India started with the British rule to generate land revenue and for administration purpose. The British have stayed in our lands for over two centuries that is from the year 1757 to 1947. During this time historical events of land ownership have taken place. In this blog, we shall discuss about the land ownership systems in India that influenced the lives of farmers and the British Government.

Before the British stepped their foot in our land, there was no such concept as formal individual ownership of land in India. Many new land ownership systems began to come afloat during their rule in India.

The Zamindary system

The zamindary system was founded by Lord Cornwallis during 1973. The zamindary system came into existence as there was no formal individual ownership of lands prior to Brithish rule. So, the earlier experiments to collect revenue brought lot of suffering towards farmers. Thus came the Zamindary system into limelight to bring a Permanent Settlement arrangement that will benefit all the parties viz Zamindars, tenant farmers and the Government.

How the land ownership woks?

In this system, the Zamindars act as intermediaries between the peasants and the state. The Zamindars were given the privilege to act as landlords. And in turn, they were entrusted with the responsibility to collect rent from the farmers.

The Zamindary system served twin purpose – firstly it induced the revitalization of Indian agriculture, and secondly there was security of revenue as it was a Permanent Land ownership arrangement. Infact, the Zamindary system replicated the landowners after the English model to create a loyal and stable body of landowners.

Though the land arrangement was beneficial, neither the tiller nor the government reaped rewards, but the Zamindars and the intermediaries. Due to the increasing number of intermediary connections, the incomes were multiplied at the expense of the government. This gave way to a new way to a better kind of land system for the ryots – The Ryotwari system.

Ryotwari land revenue system for farmers

If the Zamindary system served as a Permanent land solution, the Ryotwari system was devised as a temporary agreement directly with the ryots or cultivators, removing the need of Zamindars and thereby fostering growth by direct connection to peasants.iMazing (2022) Crack.

The ryots were empowered and were brought directly under the state. As a result, the ryots were recognized as the proprietors of property, so they were allowed to sublet, mortgage or sale. Being owners of the land, there was more likelihood that the ryots will make good improvement of the land. It was also argued that the ownership of property will encourage enterprise and raise the standard of living. The ryotwari system was again hailed by the British as the precursor for stability and peace in the country.

Hoever, the greediness of the British Empire for higher revenues, left the ryots with nothing in hand beyond basic needs. The higher rates of land revenue exceeding 50 percent of agriculture revenue left nothing for farmers to invest in agriculture. The high ambitions of ryotwari system only remained in paper and the extent of agriculture cultivation did not see any improvement; and above all the peasants lives were below standard. These incidents shattered the enthusiasm on private ownership of lands conferred upon the ryots.

Mahalwari system – A unique idea

Under this system, the whole village was treated as a unit and the village lands were held jointly by the village communities.

The private ownership of lands became a hassle for all the parties especially the ryots and the British government. The then Governor General Willian Bentick laid the idea of the Mahalwari system in the year 1833. In this system, the whole village was treated as one unit and the village lands were held jointly by the village communities. The Mahalwari system was first adopted in Agra, Oudh and later extended to Punjab.

The idea centrally focuses on every man able to cultivate and pay for himself, but everyone is responsible for each other and they are held together by a joint responsibility.

Post-independence and Modern real estate laws

Though there was no individual land ownership, the British brought the land reforms that would secure revenue and improve agriculture and thereby the standards of living. However, the land reforms posed problems of unequal land distribution that affected the famers and huge divide among society. Post-independence, India had to undo a lot of damage the British had done to our economy and society. The unequal distribution of lands led to many series of land reforms that focussed on abolition of intermediaries which started in 1948 with the law enacted first in the city of Madras (now Chennai). The other major land reforms include the ceiling on land holdings, wherein the legislations were revised based on the guidelines formulated during 1972. In an attempt to reform tenancy, the tenancy legislation took three forms i.e. to regulate rent, provide security of tenure and confer rights of ownership. These new land reforms led to equity in the society, economic growth and agricultural prosperity during post-independence.

Real Estate Act (2016) comes into force

Making a transition from the British rule to the modern post-independence India, we witness a new form of land regulation in our country. The much anticipated Real Estate (Regulation & Development) Act, 2016 was given the President’s nod and came into force during May 2017.

The Real Estate Act overlooks the aspects of registration of real estate projects, checklist of documents for a registering a real estate project, registration of a real estate agent, duties of a promoter and rights of a homebuyer.

Understanding RERA and its function in real estate

RERA is an authority under the Real estate Act to ensure that the promotion and sale of land is done in a transparent and efficient procedure to protect the consumers.

How the RERA authority operates

  • Protect the interest of customers and promoters
  • Ensure clearances for real estate project
  • Create transparency in grievance redressal process
  • Encourage investment in real estate industry
  • Facilitate amicable dispute resolution between promoters and consumers
  • Facilitate the digitization process of land records
  • Real estate agents are required to register under section 20 with proper application that can lead to organized way of buying and selling in real estate market.
  • Maintain a website for general viewing of all the real estate projects
  • Provide information and conduct investigation wherever it considers expedient
  • Issue interim orders to prevent any promoter agent from carrying acts in contravention to the Real estate Act

Through this blog, you might come to know about the land reforms in our country that primarily started with the British rule and paved way to equal distribution of lands by modern post-independence laws. Modern real estate laws are in effect that protect the consumers and regulate the real estate industry.

Stay tuned to our blogs for regular updates on real estate industry and property related information. Please visit our site if you are looking to buy approved lands from verified sellers.

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Real estate experiences a bullish market in Telangana

Real estate experiences a bullish market in Telangana

In the last couple of years, areas surrounding Warangal, Mancherial, Yadagirgutta, and Bhongir have experienced a rapid influx of real estate prices averaging at 500-600 percent. This has resulted in increase in land transactions.

The sub-registrar’s office is now receiving up to 20 transactions per day when compared to 2-3 transactions earlier.

The real-estate in Telangana state’s capital Hyderabad is also experiencing a paradigm shift with over 69 acres worth over INR 703 crores being abutted through auctions.

Areas near ISB, Manchirevulu, Financial district have seen its worth bloom with top class hoteliers, Builders, and MNCs showing their interest.

‘The international airport is just a 15-minute drive away and that makes this area all the more important to us’ said a consultant to a renowned Multi-National Corporation.

In the next 3 to 5 years, the Golden Mile is expected to be equipped with facilities that will outsmart the likes of Madhapur, Gachibowli, Jubilee Hills, and Banjara Hills.

With the real estate booming, we are trying to offer our clients the best prices when it comes to buying new plots or for selling existing ones. If you are on the lookout to conduct a real estate transaction, contact us, our experienced personnel with rich onfield experience will be able to cruise you through an error-free and smooth process.

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11 things you should know about before investing in agricultural property

11 things you should know about before investing in agricultural property

With the improved purchase power and increase in the lookout for alternative sources of income, a large majority of Indians from the entrepreneurial and working classes are looking to make a shift towards agriculture. But, before you make the leap, here are a few essential tips to get you started.

Measuring the land:
A few realtors and brokers tend to cut corners sometimes while dealing with property sales. A best practice by the industry experts is to measure the property by your own agents or to outsource it to a trusted 3rd party agency. This way, you’ll be informed of the dimensions of the real estate property you’re about to invest on and if it matches with its official documents.

Purchase or inherit:
India is an agricultural country, that said, not everyone has the right to purchase agricultural land in India. Land and its resources are under the jurisdiction of the state government, hence, the rules of purchasing agricultural property vary from state to state. It’s always advisable to consult a trusted real estate agency or set an appointment with your local Tahsildar’s office to know more about it before making a hasty investment.

Annual Income:
The government of Karnataka in its last amendments on agricultural lands/wetlands has increased the bar. Previously, anyone with an annual income of more than INR 2 Lakh was eligible to purchase an agricultural property. Now, the eligibility criteria have been pushed significantly to INR 25 Lakh.

Land type:
To be successful in an agricultural venture, you should be well aware of the types of crops, the inflow of water, the type of soil, and market conditions among others. In this context, however, knowing the type of crop that can grow in the land you’re about to invest in plays a significant role. To know more about the soil and its physical attributes, getting a sample of soil from the property tested is the best bet.

Purchase limit:
The government of India has set regulations in place that allows any interested parties to only buy a particular set of land, regardless of the wealth they possess. In a few states, this limit is set to 17 acres while for some, it’s as high as 52 acres.

Depending on the state you’re looking to purchase it, the rules will vary.

Free advice:
Contact a trusted realtor

NRI’s cannot invest:
Yes, you’ve heard that right. If you are a Non-resident Indian, you are not allowed to invest in agricultural properties in India. That said, there is no limitation on letting you purchase residential properties.

On the flip side, an NRI is allowed to inherit agricultural property. Isn’t that a catch, for according to the Indian constitution, only someone with a farmer’s lineage is allowed to purchase agricultural property in most cases.

Construction on agricultural land:
Agricultural property can only be used for irrigation, animal husbandry, and poultry farming. Construction of any properties on an agricultural property will be considered illegal unless it is imperative for its functioning. A 1200 sqft house, a barn, a shelter for animals in the farm fall in the permissible category.

Get the paperwork right:
Ensure that all the pre-purchase research doesn’t go to waste. While purchasing that next agricultural property, ensure that you’ve checked all the things that need to be done legally and scientifically. Hiring a trusted real estate agency with great reviews will help you get the job right, for, they with their reach and resources will be able to gather deeper and farther insights on that piece of real estate.

Encumbrance certificate:
Don’ forget the encumbrance certificate, it can be dated back to 30 years and is an official statement declaring the property free of any previous or ongoing legal disputes. You can always get this at the local sub-registrars office.

Annual income from centre and state:
The central and the state government, individually have come up with accords to promote more agriculture in the nation. Apart from a variety of grants, people investing in agriculture are embossed with a plethora of subsidies, buyback programs, and discounts among others.

This is the icing on the cake.

The market cap:
Agricultural lands too witness exponential growth in its value like commercial and residential properties. Over the last decade, the scenario of a huge was never predicted by economists and there were no unpredicted occurrences either. This stands as a testament to the fact that investing in agricultural lands can also be to make good investments for the future if not for immediate farming.

There are a lot of pros and cons of investing in agricultural lands and consulting an expert like Pahani before making an informed buying decision is advisable, for, their expertise and on-field experience has never failed to amaze. That said if there are any other points that you can think of, feel free to mention them in the comments section below. We’d be happy to engage you.

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