Legal Format | India

Agricultural Land Lease Agreement for Plantation & Cultivation

A practical sample lease deed for agricultural land proposed to be used for plantation, farming, horticulture, dairy or allied agricultural activities. The form may be adapted to the land, crop, parties, lease period and applicable State law.

Important: Agricultural land leasing is substantially governed by State-specific land, tenancy, revenue, agricultural and local laws. Eligibility to lease agricultural land, permitted duration, rent, registration, possession rights, ceiling restrictions, land-use controls and termination rules can differ from State to State. The deed should therefore be checked for the State in which the land is situated before execution. Stamp duty and registration requirements should also be verified locally.
On this page Overview Official resources Legal notes Sample lease deed Property schedule

Lease of Agricultural Land for Plantation and Allied Activities

A landowner may grant another person or entity the right to use agricultural land for a specified purpose and period, subject to applicable State law and the mutually agreed terms of the lease. Agricultural and allied activities may include cultivation of food and non-food crops, plantations, fodder, fruits, vegetables, flowers and horticultural crops, agroforestry, animal husbandry, dairy, poultry, fisheries and permitted farm-related processing.

The agreement should clearly identify the property, permitted use, lease term, rent or other consideration, responsibility for statutory dues, water and access rights, improvements, trees and produce, restrictions on transfer or subletting, termination events and the condition in which possession must be returned.

Official Resources

For verification of the applicable legal provisions, parties may refer to the following official Government sources. The names are provided for reference only and are intentionally not hyperlinked:

  • India Code - Legislative Department, Ministry of Law and Justice, Government of India: Transfer of Property Act, 1882, particularly Section 117 concerning leases for agricultural purposes.
  • India Code - Legislative Department, Ministry of Law and Justice, Government of India: Registration Act, 1908, particularly Section 17 concerning documents for which registration is compulsory.
  • India Code - Legislative Department, Ministry of Law and Justice, Government of India: Indian Contract Act, 1872, including provisions governing contractual obligations and compensation for breach.
  • Department of Revenue / Registration Department of the concerned State or Union Territory: Applicable stamp duty, registration fee, document-registration procedure and State amendments.
  • Revenue / Land Records Department of the concerned State or Union Territory: Agricultural land records, tenancy restrictions, land-use classification, mutation and other State-specific requirements.

Agricultural tenancy and agricultural land leasing are substantially affected by State-specific laws. The applicable State legislation, rules, notifications and local requirements should therefore be verified for the State in which the land is situated.

LEASE AGREEMENT FOR AGRICULTURAL LAND / PLANTATION

This Lease Agreement is made at ______________ on this ____ day of ______________ 20____.

BETWEEN

(1) Mr./Ms. ______________ and (2) Mr./Ms. ______________, residing/having address at ______________, hereinafter collectively referred to as the "Lessors" (which expression shall, unless repugnant to the context, include their lawful heirs, legal representatives, successors and permitted assigns), of the One Part;

AND

M/s / Mr. / Ms. ______________, having its/his/her address or registered office at ______________, hereinafter referred to as the "Lessee" (which expression shall, unless repugnant to the context, include its/his/her lawful successors and permitted assigns), of the Other Part.

WHEREAS

A. The Lessors represent that they are lawfully entitled to lease the agricultural land admeasuring approximately ____ acres/hectares, situated at ______________, more particularly described in the Schedule below ("Demised Land"), subject to the applicable title, revenue and land laws.

B. The Lessee proposes to use and develop the Demised Land for ______________ plantation / agricultural cultivation and such allied activities as are permitted by law.

C. The Lessee has requested a lease for ____ years/months, and the Lessors have agreed, subject to the covenants and conditions recorded below and to applicable law.

NOW THIS DEED WITNESSETH AS FOLLOWS:

1. Grant and term. In consideration of the rent and the Lessee's covenants, the Lessors lease the Demised Land to the Lessee for a period of ____ years/months commencing on ______________ and ending on ______________, unless terminated earlier in accordance with this deed and applicable law.

2. Rent. The Lessee shall pay rent of Rs. ______________ per year/month, payable in advance/in arrears on or before ______________, by a mutually accepted mode against appropriate acknowledgement. Any escalation shall be ______________.

3. Security deposit, if any. The Lessee shall pay a refundable security deposit of Rs. ______________. The manner and time for refund, and permissible deductions, shall be ______________.

4. Statutory dues and outgoings. Land revenue, cess, local levies, taxes, utility charges and other statutory dues relating to the Demised Land or the Lessee's operations shall be borne by the party on whom they are legally imposed, or as specifically agreed here: ______________. Nothing in this clause shall shift a statutory liability where the governing law does not permit such shifting.

5. Permitted use. The Lessee shall use the Demised Land only for ______________ and lawful incidental agricultural activities. No change of land use shall be made without the Lessors' written consent and any permission required by law.

6. Cultivation and maintenance. The Lessee may carry out reasonable agricultural preparation and cultivation, including clearing permissible undergrowth, soil preparation, pits, bunding or terracing, irrigation and other normal agricultural operations, provided they are lawful and do not permanently damage the land.

7. Trees and vegetation. Existing trees shall not be cut, removed or materially damaged except with the Lessors' written consent and every permission, transit pass or approval required under applicable forest, tree-preservation, environmental or local law.

8. Fencing. Subject to law and required permissions, the Lessee may erect or maintain reasonable fencing or protective boundary works necessary for the agricultural operations. Ownership and removal of such works upon termination shall be governed by Clause 14 below.

9. Farm structures. The Lessee may, with the Lessors' prior written consent and all necessary approvals, erect temporary or permissible farm structures genuinely required for the agricultural operations. No residential, commercial or permanent construction shall be made contrary to land-use, building or local laws.

10. Farm processing. Any shed, drying area, storage or processing facility for produce shall be established only to the extent permitted by applicable land-use, pollution-control, factory, fire-safety, electricity and local laws.

11. Water. The Lessee may use existing lawful water sources and may create or use a well, borewell, tube-well, pump or outside water source only with the Lessors' written consent and all permissions, registrations or restrictions applicable to groundwater and water extraction.

12. Mining and quarrying prohibited. The Lessee shall not mine, quarry or remove stone, sand, minerals or other subsoil material except ordinary soil operations inherently necessary for lawful cultivation and expressly permitted by law.

13. Assignment, mortgage and subletting. The Lessee shall not mortgage or create any charge over the Lessors' title to the Demised Land, nor assign, transfer, part with possession of, or sublet the whole or any part of the Demised Land without the Lessors' prior written consent and compliance with applicable law.

14. Improvements and restoration. On expiry or earlier termination, removable structures, machinery and installations belonging to the Lessee shall be removed within ____ days, if lawfully removable and if the Lessors so require. The Lessee shall repair material damage caused by such removal. Rights in standing crops, planted trees and permanent improvements at termination shall be dealt with as follows, subject to applicable law: ______________.

15. Indemnity. To the extent permitted by law, the Lessee shall indemnify the Lessors against losses, claims, penalties or expenses arising from the Lessee's unlawful acts, negligence, breach of this deed, damage caused by the Lessee's operations, or failure to discharge statutory liabilities expressly imposed on or assumed by the Lessee.

16. Lessors' covenant. The Lessors represent that they have the legal capacity and authority required to grant the lease. Subject to the Lessee paying rent and complying with this deed, the Lessee may peacefully use the Demised Land during the lease term without unlawful interference by the Lessors or persons claiming through them.

17. Default and termination by Lessors. Subject to mandatory State law and any legally required cure period, the Lessors may terminate the lease by written notice if rent remains unpaid for more than ____ days/months after becoming due; the Lessee commits a material breach and fails to cure it within ____ days after written notice; the Lessee unlawfully transfers possession; the permitted agricultural activity is abandoned for more than ____ months without reasonable cause; or continuation becomes unlawful.

18. Acquisition or legal prohibition. If the Demised Land or a substantial part is lawfully acquired, requisitioned, resumed, or the agreed agricultural use becomes prohibited by a competent authority, the parties' rights, rent adjustment and termination shall be governed by the acquisition order, applicable law and this deed to the extent legally enforceable.

19. Early termination by Lessee. The Lessee may terminate the lease by giving ____ months prior written notice, subject to payment of outstanding lawful dues and reasonable compensation, if any, agreed for early termination and enforceable under applicable law. Any stipulated amount shall operate only to the extent legally recoverable.

20. Possession on termination. On expiry or lawful termination, the Lessee shall hand back peaceful and vacant possession of the Demised Land, subject to any statutory rights concerning standing crops, improvements or agricultural tenancy that cannot lawfully be contracted out of.

21. Notices. Notices under this deed shall be in writing and sent to the addresses stated above or to any updated address notified in writing. The parties may specify permitted modes of service here: ______________.

22. Governing law and jurisdiction. This deed shall be governed by the laws applicable to the Demised Land, including the relevant State agricultural land, tenancy, revenue, stamp and registration laws. Subject to any exclusive statutory forum, courts/authorities having territorial jurisdiction over the land shall have jurisdiction.

23. Entire agreement and amendment. This deed records the agreed terms concerning the lease. Any amendment shall be in writing, signed by the parties and, where required, duly stamped and registered.

IN WITNESS WHEREOF, the parties have executed this Lease Agreement on the date and place first written above.

The Schedule of the Demised Land

State: ______________
District: ______________
Taluk/Tehsil: ______________
Village: ______________
Survey/Khasra/Gat/Plot No.: ______________
Area: ______________
Boundaries - North: ______________; South: ______________; East: ______________; West: ______________.

LESSOR
Name: __________________
LESSOR
Name: __________________
LESSEE
Name: __________________

Witnesses

1. Name & Address: __________________________________________ Signature: ____________

2. Name & Address: __________________________________________ Signature: ____________

This is a general drafting format and not a substitute for State-specific legal review, title verification, stamp-duty assessment or registration advice.