Where Outsiders Cannot Freely Buy Land in India: Himachal, Uttarakhand, the North-East and More

An Indian citizen cannot freely buy land everywhere in India. Himachal Pradesh needs state permission under section 118 for any non-agriculturist; Uttarakhand bars outsiders from farmland in 11 of 13 districts; Sikkim, Nagaland, Mizoram, Arunachal Pradesh and Lakshadweep keep land with locals or tribes; and Scheduled Areas such as Jharkhand's CNT and SPT belts restrict tribal land. Most allow a flat or a small house plot, with conditions.

Key takeaways

• Himachal: a non-agriculturist, Himachali or not, needs government permission to buy land, generally capped at 500 sq m for a house and 300 sq m for a shop. Built-up property inside municipal limits is exempt.
• Jammu and Kashmir opened non-agricultural land to all Indians in October 2020. Ladakh did not follow.
• In Sikkim, Nagaland, Mizoram, Arunachal Pradesh and Lakshadweep, outsiders are in practice shut out of land ownership.
• Workarounds through a local name or a GPA bundle are how buyers get caught: benami deals carry one to seven years' jail and a fine of up to 25% of the property's value.

Why these restrictions exist

The rules come from three places. Some are state land-reform laws meant to keep farmland with farmers, like Himachal's Tenancy and Land Reforms Act, 1972. Some are constitutional: Articles 371A (Nagaland), 371F (Sikkim) and 371G (Mizoram) protect local land laws and customary ownership. And some come from the Fifth and Sixth Schedules, which protect tribal land in Scheduled Areas and autonomous districts. The result is not one rule but a patchwork, and the test that matters is usually not your state of origin but whether you are a tribal, an agriculturist or a certified local of that state.

These rules are about land. The separate question of who may buy farmland in states without such restrictions, and whether an NRI can, is covered in agricultural land buying rules in India and can an NRI buy agricultural land in India.

State by state

The hill states

Himachal Pradesh and section 118

Section 118 bars transfer of land to a non-agriculturist without state permission. It catches Himachalis who are not agriculturists as well as outsiders. Permission is applied for in Form LR-XIV under Rule 38-A of the 1975 rules, and practitioners report it takes six to 12 months, with the Collector inspecting the site and sending the file on to the revenue department. For a dwelling, the land is generally capped at 500 sq m, and some guides give a 150 sq m floor; for a shop, 300 sq m. For any other purpose you need an essentiality certificate from the relevant department.

The route most outsiders actually use is a built-up flat or house inside a municipal corporation, municipal committee, notified area committee or cantonment, which several legal guides say needs no section 118 permission, as do properties in HIMUDA and development-authority schemes. Confirm the exemption for the specific property with a local lawyer before paying.

Uttarakhand

Uttarakhand tightened its law in February 2025; what an outsider can still buy, and the 250 sq m house-plot cap, are set out in our Dehradun market study.

Jammu and Kashmir, and Ladakh

The October 2020 order let any Indian buy non-agricultural land in Jammu and Kashmir. Agricultural land stays barred to non-agriculturists under a new section 133-H, but with exceptions, and the government can allow conversion. Ladakh was not covered by those changes, and the Centre said in 2023 that no outsider had bought land there since 2019.

The North-East and the islands

In Sikkim, only Sikkim Subjects (people on the pre-merger register and their descendants, shown by a Certificate of Identification) can own land, and Revenue Order No. 1 of 1917 further bars sale of Bhutia and Lepcha land to anyone outside those communities. Nagaland's Article 371A means no Act of Parliament on land applies without the state assembly's consent; land sits with Naga communities and outsiders cannot own it. Arunachal Pradesh keeps land with tribes under customary law and the Inner Line. Mizoram's Article 371G gives the same protection to Mizo customary law.

Meghalaya is a permit regime rather than a flat ban: the competent authority weighs whether the non-tribal already holds land in the state, whether a tribal buyer is willing at market value, and whether the buyer works in the area. Assam restricts land in its tribal belts and blocks, which matters even around Guwahati; see our Guwahati market study. In Lakshadweep, a sale to a non-islander is void.

Tribal land in Scheduled Areas

Outside the North-East, the Fifth Schedule and state tenancy laws protect tribal land. In Jharkhand, section 46 of the Chotanagpur Tenancy Act lets a Scheduled Tribe owner sell only to another ST member resident in the same police-station area, with the Deputy Commissioner's prior approval; the Santhal Pargana Tenancy Act does similar work in the Santhal Parganas. In Andhra Pradesh's Scheduled Areas, Regulation 1 of 1970 makes transfers to non-tribals void, and the Supreme Court's 1997 Samatha ruling held that even a government lease to non-tribals there breached the regulation. A plot in or near Ranchi can still be CNT land, so check the land record before assuming a city is open.

How buyers get caught

Where a direct purchase is barred, sellers and brokers offer ways around it: registering land in a local employee's or friend's name, a long lease with an option to buy, or a "GPA sale" of agreement, power of attorney and will. Each fails the same way. The local name is the legal owner and may sell, mortgage or die. A GPA bundle transfers no title, as explained in the risks of a GPA sale. And where you pay and someone else holds, it is a benami transaction.

A worked example. You pay Rs 60 lakh for an orchard in Himachal without section 118 permission and register it in a local friend's name. Under section 53 of the Prohibition of Benami Property Transactions Act, the property can be confiscated, and on conviction you face rigorous imprisonment of one to seven years and a fine of up to 25% of fair market value: on Rs 60 lakh, up to Rs 15 lakh. The permitted sizes are smaller than they sound, too: Himachal's 500 sq m house cap is about 5,382 sq ft, and its 300 sq m shop cap about 3,229 sq ft.

Who should not try

• Anyone relying on a broker's assurance that "permission is a formality". It is a state decision and it can be refused.
• Buyers who want farmland as an investment in a restricted hill district. For outsiders, that door is legally shut.
• Anyone asked to pay before permission is granted. Make the permission, or the municipal-limits exemption, a condition precedent in the agreement.

Frequently asked questions

Can a person from another state buy a flat in Himachal Pradesh?

Generally yes, inside municipal corporation, municipal committee, notified area committee or cantonment limits, where legal guides say built-up property does not need section 118 permission, and in HIMUDA or development-authority schemes. Buying land, or a house outside those limits, needs state permission. Confirm the exemption for the specific property with a local lawyer before you sign.

Does Himachal's section 118 apply to Himachalis too?

Yes, if they are not agriculturists. The test in section 118 is whether the buyer is an agriculturist in Himachal Pradesh, not where the buyer was born, so a Himachali salaried professional who owns no farmland also needs permission to buy land. Built-up property inside municipal and cantonment limits is exempt for everyone, which is why most urban buyers never meet the rule.

Can any Indian buy land in Jammu and Kashmir?

Non-agricultural land, yes, since the October 2020 notification amended the local laws. Agricultural land is barred to non-agriculturists, though the law contains exceptions and the government can permit use for non-farm purposes. Ladakh was not covered by these changes, and outsiders have not been buying land there.

Is registering land in a local friend's name a safe workaround?

No. The friend becomes the legal owner and can sell, mortgage or leave it to heirs. If you paid, it is also a benami transaction: the property can be confiscated, and conviction carries one to seven years' rigorous imprisonment and a fine of up to 25% of fair market value. A GPA bundle does not help either, because it transfers no title.

Which North-Eastern states allow outsiders to buy land?

Assam is broadly open outside its tribal belts and blocks, and Meghalaya allows transfers to non-tribals only with official permission. Manipur requires the Deputy Commissioner's permission for tribal land. Sikkim, Nagaland, Mizoram and Arunachal Pradesh keep land with local communities under constitutional protections and customary law, so outsiders cannot realistically own there.

If you are drawn to a hill or North-Eastern property and want to know what you can legally hold before you commit, the Realty Hunting team is glad to help you check.