CAN A COMPANY BUY AGRICULTURAL LAND
In Maharashtra, if you intend to purchase agricultural land in the name of Private Limited Company / Partnership Company, to be converted for different use other than agricultural activity, they can buy the land in the capacity of the Director of the Private Limited Company, provided all the Partners whose name appears in the Memorandum of article should be farmers in their individual capacity. At the time of recording your ownership rights, you will have to furnish proof showing that you as an individual is an agriculturist /farmer. In such cases, you can use/ develop the land for any other activities as permitted by law eg. Converting the land to Non-Agricultural, making a layout and selling Plots etc.
A Pvt. Ltd. company can buy agricultural land and perform agricultural activities on it, but subject to the approved provisions of articles and the Memorandum of Articles and must be approved by the Registrar of Companies (ROC). There is no requirement of any director being an agriculturist. The Articles of the Pvt. Ltd. co. should clearly outline the agricultural activities the Pvt. Ltd. proposes to indulge in.
In the future event, if the Pvt. Ltd. co. winds up the business or shuts down due to any reasons, then it cannot dispose of its agricultural land bank to non-farmers for non-agricultural purposes.
The directors of the Pvt. Ltd., do not become Farmers/ Agriculturists automatically just because of their co. had earlier owned agricultural land and neither the heir of such directors may ever claim right as Farmer or as an agriculturist.
If the collectors inspect the activities of a particular agricultural land and find that the agricultural land is being used for other purposes, then he has to attach/ acquire the said land from the owners.
There are several corporates who hold vast track of agricultural land in Maharashtra for doing various agricultural activities Tea gardens, Horticulture, Floriculture and Forestry Plantations.