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Paul Law   21 July 2021

Buying a self acquired property from a sc investor

Hi All,

We are planning to purchase a property from a person belonging to SC community. He acquired this property as investment a few years ago now he wants to retire to his home town and wants to sell of all his investment property. Considering he is from SC community will the PTCL Act be applicable for self acquired property.

This would have been a normal commercial transaction between buet and seller the only thing that brings in this perspective it that the seller is from SC community. Hence a clarification would really help.



Learning

 3 Replies

Anusha Singh   22 October 2021

As per your query it is understood that you need information regarding buying the land from the individuals belonging to SC/ST community.

The Karnataka Scheduled Castes and Scheduled Tribes (Prohibition of Transfer of Certain Lands) Act, 1978 (Karnataka Act 2 of 1979) or PTCL is a statute of Karnataka.

This law which was introduced in 1978 is retrospective in nature and is considered an ex post facto law. Currently over 10000 cases are pending before the office of the Deputy Commissioners across the State Karnataka. This law was created as a social welfare Act aiming to protect and provide land for the poor members of the scheduled Tribes and castes. But due to a lack of clarity and understanding between the judiciary and the administration there exists this large number of cases still hanging in the balance.

You cannot purchase the land belongs to SC/ST as per PTCL (Prevention of Transfer of Certain Lands) Act 1978. The Most such lands granted under restriction of alienation are protected by PTCL (Prevention of Transfer of Certain Lands) Act 1978.

In some major court rulings, the Supreme court of India has declared that a land belonging to scheduled castes or tribes (SC/ST) cannot be purchased by anyone who does not belong to the same category, In case any person purchased the land then he will be liable to prosecute under Section 8 of PTCL ACT.

In case of land granted to SC/ST, even after the expiry of 15 years from the date of grant, permission should be obtained from the State Government before such land is transferred by the grantee under the provisions of Section 4 of the Karnataka Scheduled Caste and Scheduled Tribe (Prohibition of Transfer of Certain Lands) Act, 1978.

I would suggest you to not take any kind of risk and to ask for prior written permission from the competent authority before buying such land.

Hope it helps!

Regards,

Anusha Singh  

suresh k   11 July 2024

Can I purchase a self acquired agricultural land of a sc will there be an dispute request for suggestion regards suresh

P. Venu (Advocate)     10 October 2024

The facts posted the property,  though held by a person of the SC/ST community, it is a self acquired property, not the land granted by the Government. As such, the prohibition  under PTCL Act is of no application. This aspect quite evident from the provisions of Section 4 as well the Statement of Objects and Reasons of the Bill.

4. Prohibition of transfer of granted lands.- (1) Notwithstanding anything in any law,
agreement, contract or instrument, any transfer of granted land made either before or after the commencement of this Act, in contravention of the terms of the grant of such land or the law providing for such grant, or sub-section (2) shall be null and void and no right, title or interest in such land shall be conveyed or be deemed ever to have conveyed by such transfer.
 (2) No person shall, after the commencement of this Act, transfer or acquire by transfer
any granted land without the previous permission of the Government.
 (3) The provisions of sub-sections (1) and (2) shall apply also to the sale of any land in
execution of a decree or order of a civil court or of any award or order of any other authority.

STATEMENT OF OBJECTS AND REASONS

 Act 2 of 1979.- The non-alienation clause contained in the existing Land Grant Rules and the provision for cancellation of grants where the land is alienated in contravention of the above said provision are found not sufficient to help the Scheduled Castes and Scheduled Tribes grantees whose ignorance and poverty have been exploited by persons belonging to the affluent and powerful sections to obtain sales or mortagages either for a nominal consideration or for no consideration at all and they have become the victims of circumstances. To fulfil the purposes of the grant, the land even if it has been alienated, should be restored to the original grantee or his heirs.


 The Government of India has also been urging the State Government for enacting a legislation to prevent alienation of lands granted to Scheduled Castes and Scheduled Tribes
by Government on the lines of the model legislation prepared by it and circulated to the State Government.
 Hence the Bill.
 (Published in the Karnataka Gazette (Extraordinary) Part IV-2A dated 30-6-1978 as No.
1000 at page7.)


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