How Much Can You Build on Agricultural Land in Karnataka? The 10% Rule Explained

Quick Answer

You can build a farmhouse on a maximum of 10% of your total agricultural landholding in Karnataka. The structure must be used by the agriculturist for residence, storing farm equipment, or tethering cattle, and cannot be let out commercially. This cap comes from Section 95 of the^[1], as amended in 2015. Andhra Pradesh applies the same 10% norm under its own statute. Building beyond this limit requires formal land conversion under Section 95(2).

A 10,000 sq ft plot permits 1,000 sq ft of construction. A 0.50-acre plot permits 2,178 sq ft. A one-acre plot permits 4,356 sq ft. Cross these thresholds without conversion and the structure is exposed to demolition orders, forfeiture, and daily penalties under Section 96.

TL;DR

• The rule: 10% of the surveyed plot area is the maximum buildable footprint without land conversion.

• The use: Residence by the agriculturist, farm equipment storage, or cattle. No commercial letting.

• The legal basis: Section 95(1) of the Karnataka Land Revenue Act, 1964, with the 10% cap added by the 2015 amendment.

• Going beyond 10%: Requires Section 95(2) conversion to non-agricultural use. The 2025 Rules cut DC timelines to 15 days and introduced 30-day deemed approval.

• Who can buy: Any individual, company, or trust after the 2020 repeal of Sections 79A, 79B, and 79C, recognised by the Supreme Court in August 2025. A reinstatement was announced in September 2024 but has not been enacted.

• AP position: Same 10% norm in practice; conversion handled through AP revenue and Town and Country Planning authorities.

The Legal Basis: Section 95 of the Karnataka Land Revenue Act, 1964

Section 95(1) permits an occupant of agricultural land to erect farm buildings for "the better cultivation of the land or its more convenient use for the purpose of agriculture." No separate Deputy Commissioner permission is required within this scope.

The Karnataka Land Revenue (Amendment) Act, 2015 added a controlling proviso. Per the^[2], the explanation inserted into Section 95 states the structure "shall not be more than ten percent of his holding." The same explanation defines a farmhouse as "a house attached to a farm and constructed in a portion of an agricultural land, used for the residence of the agriculturist or used for the purpose of keeping agricultural equipments and tethering cattle." It also bars the house from being "let out for commercial activities to any individual or agency."

The Karnataka High Court applied this rule directly in G.S. Siddaraju v. State of Karnataka (2016 SCC OnLine Kar 8430). The Court held that an agriculturist owning 10 acres can put up construction "utilising a bigger area in his agricultural land, say up to 1 acre," provided the structure stays within the 10% ceiling and is not commercially let.

What 10% Means for Real Plot Sizes

The rule is mechanical. Take the surveyed area, multiply by 0.10:

• 10,000 sq ft (≈0.23 acre): 1,000 sq ft maximum.

• 0.25 acre (10,890 sq ft): approximately 1,089 sq ft.

• 0.50 acre (21,780 sq ft): approximately 2,178 sq ft.

• 1 acre (43,560 sq ft): approximately 4,356 sq ft.

• 5 acres (2,17,800 sq ft): approximately 21,780 sq ft.

The cap covers the main farmhouse plus any ancillary roofed structure: a guest cottage, a covered patio, a storage shed. Open wells, unroofed water tanks, and purely agricultural enclosures typically sit outside the count.

Building Beyond 10%: The Section 95(2) Conversion Process

To build beyond 10%, the land must be converted to non-agricultural (NA) use under Section 95(2). This is the "DC conversion" process, accessed through the^[3].

The^[4], in force since September 2025, streamlined the process:

1. Documents: Notarised affidavit in Forms 21B and 21C, RTC extract, mutation register extract, pre-conversion sketch, khata certificate (for local body areas), and master plan extract.

2. Master Plan zones: If the land conforms to the published zonal classification, DC permission is not required. The planning authority verifies, collects fees, and issues a digitally signed conversion certificate.

3. Outside Master Plan zones: the DC must decide within 15 days. Non-action within 30 days triggers "deemed approval."

4. Post-conversion: Normal FAR, setback, and plan sanction rules apply.

Penalties under Rule 106F include cancellation of conversions, forfeiture of fees, confiscation of land, and fines up to ₹1 lakh plus ₹2,500 per day for continuing violations, recorded as an encumbrance on the RTC. The Karnataka High Court in Staney Herald D'Souza v. State of Karnataka (2024) upheld the DC's discretion to refuse applications that contravene existing laws.

Who Can Buy Agricultural Land in Karnataka

The^[5] repealed Sections 79A, 79B, and 79C of the Karnataka Land Reforms Act, 1961, retrospectively from 1 March 1974. These sections previously barred non-agriculturists with non-agricultural income above ₹25 lakh from purchasing farmland.

After the 2020 amendment, any individual, company, trust, or society can buy agricultural land regardless of non-agricultural income. Section 63 ceiling limits still apply, capping individual holdings at 20 units of A-class land, scaling to 40 units for families with more than five members.

In September 2024,^[6]. As of April 2026, no reinstatement has been enacted, and the Supreme Court of India in an August 2025 judgment explicitly recognised the 2020 repeal and its retrospective effect.

The Andhra Pradesh Position: Same 10% Principle, Different Statute

AP rural agricultural land is governed by the AP Land Revenue Act; urban and planning-area construction falls under the AP Building Rules, 2017. The most recent overhaul came through^[7], finalising amendments published in AP Gazette Nos. 69 and 82 of May 2025.

For rural agricultural land outside notified planning areas, AP permits farm buildings incidental to cultivation. Anything else requires conversion through AP's revenue and Town and Country Planning authorities. The 10% norm is the practical reference on both sides of the border. This matters for plots in Lepakshi, Somendapalli, and the KIA corridor extending into Anantapur district, where AP's regulatory regime applies even to Bengaluru-based buyers.

Three Mistakes That Invalidate Farmland Investments

The most common mistake is treating agricultural land as residential land with a discount. It is not. Violations are not automatically regularised. Karnataka opened a one-time window under Section 95(2AA) with a 31 December 2008 cutoff, but it is closed.

The second mistake is assuming larger plots permit disproportionately larger construction. The 10% ratio is linear. A five-acre plot allows 21,780 sq ft total across all roofed structures, not per structure.

The third mistake is ignoring the commercial-use prohibition. A farmhouse used as a weekend rental operates commercially even if the owner visits occasionally. The 2015 amendment language is explicit: no letting out "to any individual or agency."

The Bottom Line

On agricultural land in Karnataka, you can build up to 10% of your plot as a farm building or farmhouse without conversion. The structure must be used by the agriculturist, tied to agricultural use, and never let commercially. Anything beyond 10% or outside farm use requires Section 95(2) conversion. Under the 2025 rules, conversion is faster than at any time in two decades. Plan for it from day one if you want a large villa, farm stay, or multi-unit development.

The rules are stable, enforceable, and well-documented. Investors who treat them as parameters build assets that appreciate without legal exposure.

Key sources:

• Karnataka Land Revenue Act, 1964 — Section 95 (Indian Kanoon)

• SCC Times — Farm Houses in Karnataka: Lacunae in Legislation (Jan 2021)

• Cyril Amarchand Mangaldas — Karnataka Land Revenue Rules Amendment, 2025

• Khaitan & Co via Lexology — Karnataka Land Reforms (Amendment) Ordinance, 2020

• Karnataka Bhoomi Land Records Portal

• AP Government G.O.Ms. No. 114, dated 26-06-2025

• The Wire — 79A/79B reinstatement debate (Sept 2024)

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