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Glossary · Section 63AA

What is Section 63AA?

Section 63AA of the Gujarat Tenancy & Agricultural Lands Act, 1948 lets a non-farmer buy agricultural land in Gujarat for a bona-fide industrial purpose, subject to post-purchase notice within 30 days and Industries Commissioner permission above 10 hectares.

What Section 63AA does

The Gujarat Tenancy Act generally restricts purchase of agricultural land to those who qualify as farmers. Section 63AA is a permitted-purpose carve-out: a person or company can purchase agricultural land for a bona-fide industrial purpose without first qualifying as a farmer, subject to compliance conditions.

It is the most-used route for non-farmer companies acquiring agricultural-origin parcels for industrial use across Sanand, Hansalpur, Halol, Dahej, Bharuch and the wider Gujarat industrial belt.

Who can use it and what 'industrial purpose' means

Eligibility is defined by the buyer's intended use, not the buyer's classification. A company, LLP, partnership or individual proposing a manufacturing, processing, warehousing or otherwise notified industrial activity can purchase under 63AA. Pure-trading or pure-service uses generally do not qualify.

Compliance — what the buyer must do

Within 30 days of execution, the buyer gives written notice of the purchase to the Collector and the Mamlatdar of the relevant district. Where the parcel is above 10 hectares (~24.7 acres), prior permission of the Industries Commissioner is required before the purchase.

Use compliance is purpose-conditional — the buyer is expected to commence the industrial activity within a reasonable period. Material change of use without further permission can attract action by the Collector.

Related

Read next.

Section 63AA — non-farmer industrial purchase explainedHow to buy industrial land in GujaratAgricultural land in Gujarat
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