DH Deciphers | What changes are proposed to the Karnataka Land Reforms Act? Why do they matter?

In what is being seen as a landmark policy move, the BJP-ruled Karnataka has decided to do away with restrictions on purchasing agricultural land. This will require amendments to the Karnataka Land Reforms Act, 1961, which will allow anyone, even non-agriculturists, to purchase and own farmland. The decision taken by the cabinet on June 11 has met with mixed responses and the opposition Congress is up in arms. So what's all the fuss about?

What has the government proposed?

The proposal is to repeal Sections 79A, B, C and 80 of the Act with retrospective effect, and amending Section 63.

What do these sections say?

Section 79A says no person (or a family) that has an assured annual income of at least Rs 25 lakh whose source is non-agricultural land can acquire farmland.

Section 79B says that only a person cultivating land personally can hold agricultural land. Other exceptions to holding farmlands are educational, religious or charitable institutions, societies or trusts, companies, associations and cooperative societies.

Section 79C deals with penalty for falsely claiming eligibility to hold agricultural land.

Section 80 bars agricultural land from being transferred to a non-agriculturist, an agriculturist who already owns or has a tenancy of land as per the ceiling or someone who is not an agricultural labourer.

Section 63 prescribes the ceiling on farmland ownership. The ceiling for a person (or a family of four) is 10 units, whereas a family consisting of more than five members can hold 20 units. One unit is 5.4 acres.

What happens if the Act is changed as proposed?

If Sections 79A, B, C and 80 are repealed, then anyone, even non-agriculturists, can purchase and own farmland. Amending Section 63 will mean agricultural landholding will go up from 10 units to 20 units for an individual without family or a family up to four people and from 20 units to 40 units for a family of more than five.

So what's the big deal?

This is being seen as a major land reform that will throw open agricultural lands for purchases in Karnataka, which currently has restrictions on this front. Many states have done away with such restrictions.

Why is the government doing this?

The government has laid out several points of argument. Section 79A bars those with an annual income exceeding Rs 25 lakh from acquiring farmland even if they are basically agriculturists. Section 79B says non-agriculturists cannot hold farmland.

Because of these clauses, the government says, large parcels of land cannot be brought under cultivation. If these prohibitions are removed, then people who are not agriculturists but are interested in agriculture can purchase farmland. The government believes it will enable youths to practise modern agricultural techniques. Also, if the ceiling limit is enhanced, then more people will be interested in purchasing farmland and hence, the value of land will increase naturally, the government argues.

What happened all these years?

Non-agriculturists have managed to purchase farmland over the years by subverting the law. Totally, 83,171 cases covering 1.76 lakh acres have been registered for violating sections 79A and B, of which 12,231 cases on 24,553 acres are still pending adjudication.

Even the high court has noted that proceedings under sections 79A and B are fraught with difficulties for the public, especially litigants who want to get Khata, Podi and land conversion (agricultural to non-agricultural use) done. Also, many cases were either dropped or no confiscation of land was done by the government.

So by retrospectively repealing these sections, the government will close all cases pending adjudication.

Why is this being opposed?

The Congress says this is against the rights of farmers, especially those with smaller landholdings. It fears the move will lead to the creation of land banks which, in turn, will give rise to the land mafia. Ultimately, the move will benefit capitalists, it argues.

What's the government response?

In response to criticism, the government has said some guidelines will be put in place to prevent the misuse of purchased farmland. It also says the Karnataka Town and Country Planning Act will restrict the use of farmland for other purposes.

What's next?

If the monsoon session of the legislature is held later this month or in July, then an amendment bill will be tabled for passage. Otherwise, the government may promulgate an ordinance to bring these amendments into effect.