FARM HOUSE ON AGRICULTURAL LAND IN INDIA

Saturday Brainstorming Thought (301) 15/11/2025

 

 

 

 

By:-Er. Avinash Kulkarni
9822011051

Chartered Engineer, Govt Regd Valuer, IBBI Regd Valuer,

Rera Certified Consultant, Black Money Act Regd Valuer

Building a farmhouse on agricultural land is possible but requires specific permissions and adherence to local regulations, which vary by location

Typically, you must be a registered farmer, and the farmhouse size is restricted to a small percentage of the total land (often 10% or less)

Construction must be for the owners residence or for agricultural purposes, such as storage or housing livestock, not for commercial use

Key Considerations for Farmhouse

1) Land status and ownership

You must be the legal owner of agricultural land

You must be a bonafide farmer as per official revenue records to be eligible

The land must be zoned for agriculture and not for other purposes like industrial or no-development zones

2) Construction Size

The total area of the farmhouse is restricted, usually to a small percentage of the total holding, such as 10% or 4% in some areas or to a maximum floor area like 400 Sqm

The remaining land must be used for farming activities

3) Purpose of the Farmhouse

The construction must be for the owner’s residential use or fir activities ancillary to farming, such as storing equipment, housing livestock or acting as a rest house for the farmer

4) Permissions

You will need to obtain permission from the local revenue authorities, such as Collector’s office or Tahsildar

You may also need to apply for a land conversion if the construction exceeds what is allowed on agricultural land

5) Proof of Construction

After obtaining lawful construction permission, you may be able to get water and electricity connections

Necessity of NA conversion for Farmhouse

Not always necessary – It depends on the purpose and scale of construction

1) If the structure is a traditional small farm house as per permissible byelawas, serving agricultural use or weekend farming, NA permission may not be mandatory

2) However, for permanent residential use, commercial activities or extensive infrastructure like swimming pools, NA conversion is essential

3) The conversion involves a detailed application, scrutiny by the Tahsildar or Collector, and payment of conversion fees

Unauthrized Farmhouse construction consequences

Unauthrized construction of a farmhouse can result in severe legal and financial consequences

The penalty for building houses on agricultural land without permission in Maharashtra includes

1) Demolition orders

2) Hefty finee calculated based on the area of farmhouse constructed

3) Prohibition from registration or resale

4) In some cases, criminal prosecution under the MRTP Act

Building restrictions on agriculture land in Maharashtra

Several agricultural land building restrictions are enforced to preserve rural landscapes and ensure planned development

1) No high-rise buildings are permitted

2) No construction near river banks, forest zones or ecologically sensitive areas

3) Construction must not violate zoning restrictions of the regional plan (RP)

4) Residential usage is limited to agricultural support

5) You cannot use it as a full fledged commercial resort without conversions

Can a Non-Farmer build a Farmhouse on Agricultural land in Maharashtra

As per agricultural land rules in Maharashtra, only registered farmers can purchase agricultural land and construct a farmhouse on it

1) Non-farmers can only invest in such land after obtaining special permissions or converting their status under certain schemes

2) Some real estate companies offer ready NA plots or joint development models, but due diligence is a must

FSI permissible on Agricultural Land in Maharashtra

FSI determines how much you can build

It is lower for agricultural zones to control density

1) FSI on agricultural land in Maharashtra typically ranges from 4% to 10%

2) It’s crucial to calculate your construction within this limit to avoid legal disputes

Conversion of Farmhouse to a Commercial Property later in Maharashtra

Yes, but only with

1) NA conversion for commercial use

2) Change of land use under regional planning norms

3) Approval from the district town planning authorities

This is common when farmhouses are later turned into resorts or banquet spaces

Building Swimming Pools in the Farmhouse

Only with NA conversion and additional permissions

Restrictions on height or setback for farmhouse

Usually Ground + 1 floor with mandatory front and rear setbacks

Prefab options for Farmhouse

Yes, modular prefab options are legal in Maharashtra and affordable

Building Farmhouse on forest adjacent land

Strictly not allowed without forest department NOC

Documents needed for farmhouse construction

1) Land title

2) 7/12 Extract

3) Layout

4) Mojani Nakasha

5) Building plan

Non-maharashtra residents can build farmhouse

Yes

Only if they have farmer status

Rent a Farmhouse on weekends

Not legally unless NA converted for commercial use

Care to be taken before investing in a Farmhouse

1) Check if the land you are buying is fertile

2) The registry papers should have all information about the land, type of soil and crops grown on the land etc

3) Ensure that your land has a properly wall fencing

4) Check for other facilities such as water availability, electricity connection and distance from main road

5) Farmland you are buying should have government approval for sale, as the absence of this can create legal issues at later stages

6) When buying farmland, it is also essential to checkout the amount of taxes applicable

7) If the farmhouse is zoned only for cultivating crops, it may not be used for raising livestock on it

Legal Checklist befor buying a farmhouse

1) Title Deed

Verify ownership history and ensure no disputes

2) Encumbrance Certificate

Confirms the land is free of legal debt

3) Land Classification

Check if it’s agricultural, residential or restricted

4) CLU Approval

Essential if you plan to change land use or construct non-farming buildings

5) Release Certificate

Required if the property was previously mortgaged

6) Property Tax Receipts

7) Boundaries & Survey Maps

Ensure the plot does not overlap forest or government land

Things to check before you by farmhouse

1) Accessibility

Choose a location that balances peace and connectivity

2) Utilities

Confirm power, water and road access before buying

3) Maintenance Costs

Larger plots need more unkeep and security

4) Future Developments

Check for planned roads, airports or SEZ nearby – they can value

5) Insurance

Protect your farmhouse from flood, fire and theft risks

6) Legal Access Roads

Ensure you have official entry to the property

Farmhouse Market Trends in India

1) Rising Demand

Post-pandemic lifestyles have made farmhouses a popular investment for relaxation and remote work

2) Prime Locations

Lonavala, Ooty, Coorg, Pondicherry, ECR-Chennai belt and Devanahalli (Bengaluru)

3) Eco-Focused Buyers

Solar energy, rainwater harvesting and organic gardens are trending features

4) Income Potential

Owners often rent out farmhouses for wedding, corporate retreats or staycations

4) High-Value Appreciation

Scenic locations near urban centers have seen property values raises by 20-30% in the last 5 years

Common legal mistake to avoid while buying farmhouse

1) Building on agricultural and without legal conversion

2) Exceeding the permissible FSI

3) Buying property in forest or waterbody zones

4) Skipping NOC or property tax checks

5) Trusting verbal claims instead of verified government records

Compiled by

Avinash Kulkarni