Agricultural vs Non-Agricultural Land (NA plot)

Agriculture vs NA Plots - ComparisonBuying land for investment or for living is considered to be a major move emotionally and financially. At times, buying a plot can be challenging unless you have a sound financial backing for the investment. It is observed that the value of plots generally rises faster than that of apartments. Even the age does not affect a land price, but a structure becomes dilapidated with time. Besides, in an apartment, you have limited layout options. Many individuals prefer investing in a NA plot then on a flat since it’s an economically better option in a long run than buying a constructed property.

This is because the land appreciates more that any constructed property and you can expect a better value for money. However, purchasing a plot involves more precautionary steps than purchasing apartments and pre-build houses.

Plots are broadly classified into three major types:

  • Agricultural Land (Green Zone)
  • Non-Agricultural Land or NA Plot (Urbanizable Zone, Industrial Zone, Recreational Zone & Residential Zone or R-Zone.)
  • Forest Land (Forest Zone)

Definitions and Meanings of commonly used terms and the significant differences between an NA Plot and Agricultural Plot.

Agricultural Land - Propzapper blogAgricultural Land/Plot – Agricultural lands are typically lands devoted for agricultural activities. It is, thus synonymous with farmland and cropland. It is strictly forbidden to construct a residential or commercial estate upon agriculture lands. Non-farmers are not eligible to buy agricultural land in India. The area is primarily engaged in agricultural activity are also categorized as Green Zone (G-Zone). According to the Government of Maharashtra, buying an agricultural plot less than 11,000 sq.ft. will not be considered legal and therefore no Sale-deed or 7/12 extract will be issued.

Non-Agricultural Plot/Land – Before carrying out any development on the agricultural land, the person has to apply to the collector for the permission to convert the use of agricultural land for any non-agricultural purpose. After converting the agricultural Land into NA plots, it becomes easier to receive permission for construction from the local governing bodies.

7/12 Extract – A 7/12 extract (Saat-Bara Utara) is one of the most important legal documents to identify the sole owner of a particular land in Maharashtra. A 7/12 extract is an extract from the land register maintained by the revenue department of the Government of Maharashtra, India. It basically gives you the information such as; Survey No. of the land, Name of the Owner of the land, the area of the land, the type of land, type of cultivation – irrigated/rain fed & the names of the crops planted in the last cultivation season.

NA Plot - PropZapperFSI (Floor Space Index) – FSI is nothing but a ratio received from the government for the development on a particular land. However, the permitted FSI for every land is different according to the type of the land. The approved FSI for an Agricultural plot in Maharashtra is very less, i.e. approximately 0.04, this may vary as per the land zone.

Construction Right – After attaining all the legal ownership of the land, the next step includes receiving permission for construction on your plot/land, from the local authorities. However, seeking permission for construction on a NA plot is easier in comparison to that on an agricultural plot.

Loan – No bank loans are available to buy an agricultural plot. You can easily apply Loan for a clear title N.A. sanctioned Plot/Land. There are many nationalist, semi-national and co-operative Banks that lend loans to buy NA Sanctioned plots/lands.

Future Reservation – This is one of the important factors that you must consider to cross check before buying any plot. Check with the Town Planning & Development Authority, to confirm if there are no future reservations of development such as, school, college, road, garden, etc. on your land in order to avoid future difficulties. However, such reservations are often appeared on an agricultural land.

Taxation: In India Agricultural land is not considered as a capital asset. On the other hand, the person has to pay taxes for NA Plot /Land, from the date on which the NA Sanction begins.

Penalty: If any Agricultural land is used unauthorized for non-agricultural purpose by the occupant without obtaining the right permission, then, it shall be lawful for the Collector to stop its unauthorized use and ask him to pay the NA taxes and the penalty for making unauthorized use of an Agricultural land.

Open Space: As per government norms, for a NA plot it is mandatory to allot approximately 35%-40% open space. However, this isn’t the scenario in case of maximum agricultural plot projects.

Area Deduction: There is no area deduction for an NA plot, for instance, if you are planning to buy a 1,000 sq.ft. plot you are allotted the same area as mentioned. On the other hand, for an agricultural plot there are chances of area deduction for road development.

Society Formation: There are absolutely no problems in society formation for a sanctioned NA Plot project due to which the project remains well maintained by all society member. This isn’t the same in case of an agricultural plot, 99% agricultural plot cannot form society, this leads to poor maintenance or no maintenance.

Revised layout – It is easy to revise your layout plan legally in a sanctioned NA plot. Layout plan of an agricultural plot is a private layout, therefore, they can revise it as per their choices & preferences.

Resale – The value of a NA plot is higher than an agricultural plot because of the demand-supply difference. The Number of clear title NA land is comparatively less, therefore, their resale value is high. The resale value for an agricultural land is comparatively very low.

Surety of investment – There are numerous shortcomings or violations of government act that one may face while investing in an agricultural plot, which is less than 11,000 sq.ft. Investing in a clear title Residential NA plot is always considered as a tension free investment solution.

Potential investors – Agriculture plots are only meant for the purpose of agriculture; a non-farmer/NRI are not eligible to buy agriculture land. Any potential buyer, investor or NRI is eligible to purchase a NA plot /land in India.

na plot vs agricultural plot - comparison

 Agricultural Plot/LandClear Title N.A. Plot/Land
Plot/LandAn agricultural plot is used exclusively for agriculture. It is ill-legal to construct residential or commercial estate upon on such land.An NA plot is obviously Non Agricultural land. You can develop on the said land provided it is the right zone and you obtain all necessary permissions from the local authority.
SanctionPrivate LayoutCollector Sanctioned N.A. Plot - It is the last and the most important sanction, granted by the collector or sanctioning authority.
FSIApproved FSI for an Agriculture Plot/Land can be up to 0.04.Approved FSI for an N.A. Plot/Land is up to 0.75 to 1.
7/12 Extract7/12 Extract minimum area 11,000 sq.ft.7/12 Extract minimum area as per sanctioned layout.
Note : New 7/12 extract shall , then , reflect the name of the new-owner, i.e. the buyer.
Construction RightsNo - Need for N.A. Approved construction plan.PMRDA
LoanNo – Loan from nationalist, semi-national and co-operative Banks.Yes. Loans Available
Future Reservations or AcquisitionsYes, there are chances of future reservation development on plot or land99% no chances of any future reservation development.
TaxationAgricultural land is not considered as a capital asset .The person has to pay N.A. taxes from the date on which NA use begins.
PenaltyUnauthorized use of non-agricultural without obtaining permission, will lead to heavy penalties.Since all the legal procedures are completed, there are no chances of penalty.
Open SpaceNo.Yes. Approx 35%-40% open space.
Area DeductionYes.No.
Society FormationNo.Yes.
Revised LayoutNo.Yes.
ResaleProbably Less100% Resale rate
Surety of investmentViolation of government act.Tension free investment
Who can purchaseMeant only for the purpose agriculture, a non-farmer is not eligible to buy A-land without prior permission of the collector.Any buyer or investor (INR’s can also purchase)


Before buying any property, it is essential to first focus on one’s own requirements. No doubt a NA plot has the advantage of assuring big returns on investment, but it usually needs investment in full term and there is no choice of taking leverage on the fund. On the other hand, buying a flat is very easy so that an investor can take leverage on its fund.

Before conforming to buy a NA Plot, it is advisable to get all the documents to be checked by a lawyer to ensure they are original and have no flaws, in order to protect yourself from fake registration and from properties that is stuck in court litigation. Apart from the documentation it is also important to check for the connectivity of the plot and ensure that the property is not isolated, its proximity to basic necessities such as, schools, colleges, market, hospitals, transportation, entertainment, etc.

Buying a plot and constructing your own house is more satisfying since, the owner of the house is involved in every step of the construction process and everything is done as per your choices and preferences.

30 thoughts on “Agricultural vs Non-Agricultural Land (NA plot)

  1. Your Distinction on Non Agricultural Land and Agricultural Land is educative. Thank you. Could you also hilight on PMRDA and it`s functioning.

    1. Thanks for your feedback Mr. Rahul. And yes, we will be highlighting upon PMRDA in one of our next blogs. Stay connected.
      Thanks again.

    1. Thank you for posting your query Mr. Pravin, the government approved FSI for an agricultural land is 0.04. You can easily construct a residential property up to 440 Sq.Ft.

  2. thanks for informing us with your great knowledge, your blog is so much informing as i see , so please keep updating us .

  3. Now NA is not needed I heard
    Its mandate is removed !
    Direct approval from TP is needed
    To have all rites or more than what NA plot would have so now if need to buy what should be checked ?
    Can you guide on this

  4. Often I wouldn’t read through posting upon information sites, however want to declare that this specific write-up extremely compelled myself you need to do hence! Your own publishing taste continues to be amazed my family. Thanks, very good post.

  5. Wonderful article and very informative. I wish this was available to me earlier.
    On the same topic I need your advise.
    I had purchased a agricultural plot of 2000 sqft in the year 2011 through a property agent who deal into plotting of agricultural land and selling it for profit. During purchase of this plot I was not much aware of the Property law. I had a registered sale deed done with the owner for this plot. Later while I inquired about adding my name to the 7/12, I was told that due to certain reasons, henceforth names would be added on the 7/12 only for land purchases of 11000 sqft and above. As such I do not have my name on the 7/12 now after multiple follow ups with the agent.

    I would like to sell the plot to a prospective buyer now. My question’s to you are,

    1. Can I sell the plot without my name on the 7/12, based on the sale deed ? How can that be done ?
    2. I have been told that my name cannot be added to the 7/12 due to the rule passed by govt of Maharashtra, is it true ?
    3. If at all I hand over the possession of the plot with my power of attorney, does it make sense ?

    I would be thankful to you if you could help me answer my questions.

    1. Dear Mr. Raj,

      Please find below the answers to your queries:

      According to the Land Act of Maharashtra an individual cannot sell the plot until his / her name is reflecting on the 7/12 of the property.
      And Yes, the information you have got is correct about adding your name on 7/12. The law says you will need to hold minimum 11000sqft (i.e. 11 guntha) land to get the individual 7/12 extract on your independent name. If you can talk to the plot owners surrounding your plot (making a total of 11000sqft adjacent to each other) about getting group 7/12 then it is possible to get your name on the 7/12 however it will be a group 7/12 so all the plot owners (11000 sqft) names will come on the 7/12 extract.
      Legally speaking you wont be able to sell the plot without 7/12 extract on your name.

      We hope we were able to answer your queries to your satisfaction.

      Team PropZapper

  6. 1) If I am purchasing a NA plot of 2500 sqft in Raigad district can I register the property & have my name on 7/12 extract. ?

    2) I am an NRI so can I Register Agri TDZ plot of 1 Acre in Maharashtra ?

    1. Hi Mr. Husain, Answering both your questions – You can purchase only collector sanctioned NA Plot in Maharashtra & cannot buy any agriculture land. And yes, for the NA plot, you can have your name on 7/12 also.

  7. I have purchased 6 guntha agricultural land in konkan from class 1 owner and 7/12 utara was issued in my name 8 M pherphar and 8 A is in my name also . The documents are issued by Talathi and prant (mandal adhikari) . I have not come across this 11000 gunthe rule.
    I have purchased adjacent agricultural land of 19 gunthas from the same owner the plot has seperate surve number . since 6 guntha plot is rodeside plot I have constructed 600 house on this plot with permission of grampanchyat. the adjecent plot has no seperate access to road as such is the best purchaser for that plot .
    Now I would like to request you can I merge both plot since both are in my name and can i utilize FSI of adjacent plot for my existing house .
    I will be grateful if you comply my query .Thanking you. may e mail id is as under

  8. Hi,
    I have a small farm house on a Agricultural plot of 6 Guntha, now I am planning to build an open terrace to that house, Can I do that…? As someone told me that a house on a agricultural plot need to be very basic & cant build floor or Terrace…
    As I want to just add a terrace, can this be a problem..?

  9. Hi,
    Recently I found that my parents had brought agricultural properties way back in 80’s say in 3 stages : 20R Complete one gat no.A + 20R Complete gat no B+ 10 R (out of 20 R of other gat no.C ) in the same survey number.(Total 50 R). Out of total 50R in 90’s , 40 R was sold to party X : Part of 10R (from A) + 20 R of B and and 10 R of part C . thus 10 R remained in my parents name. Subsequently in recent years land status was changed to residential zone and 6R of land out of 10 R was sold to party Y.Thus I expect that 4R out land in Gat A should be seen in 7/12 extract and 8A record in my parent’s name.
    I have recently collected the documents from talathi office, 7/12 extract indicates Gat B (20R) and Gat (20R) in name of Party X, 6 R in name of Party Y ( OK) and 4R land in Joint Name of Party X and My parent.(?) While 8A extract shows only 1R in my Parent’s Name for Gat A.
    What are possible reasons? How to get it clarified?What action I should initiate to get 4R of land in my parent’s name.

  10. sir I am buying 2000 sq feet plot in Mangali village, Hingna, Nagpur from property agent. It is non agriculture plot. I heard Now NA is not required only TP approval is needed… is it true? plz guide me.

  11. I have ranted 11000 sqft agriculture plot in Maharashtra. I want to open my New Business of mineral water plant can i use this land for industrial purpose

  12. Hi,
    I am planning to buy a Agricultural plot of 1 and half Guntha in Pune for purpose of constructing house from local developer, so my question is can I do the same..?
    and what all care I need to take to do the same, whether i should buy or not..? I would be very thankful if you could answer my question.

  13. I have 96 guntha non agricultural plot n I have to cover that into NA plot so how much net land I get for sale and my plot is subjected to MDR road how much distance is required for MDR road for sanction NA plot?

  14. I have 96 guntha non agricultural plot n I have to covert that into NA plot so so how much net land I get for sale and my plot is subjected to MDR road how much distance is required for MDR road forsanction NA plot?

  15. Thanks for a clear and systematic explanation. I am in trouble please guide me. My problem is as follows- Two developers A & B purchased a piece of non agricultural land for joint development and they have distinctive land L1 & L2 respectively registered on their names . They done the plotting jointly combining both the lands L1 & L2.They applied for NA ,paid corporation fee, Electricity Dept fee etc for the process. They got their lay out of plots, approved but NA was yet to be sanctioned. In this situation I bought a plot from A, from his registered land L1. After sometime the NA was sanctioned, before i can apply for 7/12, A & B had some dispute regarding the distribution of plots hence in Lok Adalat they redistributed their plots.Sadly my plot which was in A’s registered land gone to B.Now B is taking objection to give 7/12 to me and asking me to pay the amount and get registered.And A is not ready to pay back me the amount i had paid. What the legal status of my registration? kindly guide me.

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