Introduction:
In Himachal Pradesh, there are certain similarities in terms of land investment restrictions when compared to Jammu and Kashmir. These restrictions pertain to the purchase of land for non-agricultural purposes such as residential, commercial, or industrial use. However, it is important to note that agricultural land has its own set of rules and regulations which differ from other types of real estate.

Despite these restrictions, non-residents still have opportunities to invest in real estate within Himachal Pradesh. This means that individuals who are not permanent residents of the state can purchase properties like houses, apartments, commercial buildings, or industrial land, provided they fulfil certain eligibility criteria

Who Is Eligible To Purchase Property In Himachal Pradesh?

Permanent Residents: Permanent residents of Himachal Pradesh, who are individuals who have resided in the state for a specific duration as defined by the Bonafide (Domicile) Policy, are eligible to buy both agricultural and non-agricultural land in the state.

Non-Resident Indians (NRIs): NRIs are also allowed to purchase property in Himachal Pradesh. They can invest in residential, commercial, or industrial properties, except for agricultural land. NRIs need to fulfil certain eligibility criteria and follow the necessary procedures, which may include obtaining permission from the state government under Section 118 of the Himachal Pradesh Tenancy and Land Reforms Act.

Other Indian Citizens: Indian citizens who are not permanent residents of Himachal Pradesh can purchase pre-constructed properties, such as houses, apartments, commercial buildings, or industrial structures in urban areas of the state. However, they cannot buy agricultural land.

It’s important to note that for all non-residents, the ownership rights are limited to the pre-constructed structures themselves, while the land remains under the ownership of a permanent resident of Himachal Pradesh.

PROPERTY PURCHASE IN HIMACHAL PRADESH

Benami Transactions
Benami transactions involve purchasing property in the name of another person, typically a permanent resident of Himachal Pradesh, on behalf of an outsider. This practice is employed to bypass the restrictions on property ownership by non-residents. However, such transactions are illegal and can lead to legal consequences.

Non-Agricultural Land
Outsiders looking to invest in property in Himachal Pradesh are generally restricted from purchasing agricultural land. The focus is on preserving agricultural resources and supporting local farming communities. Therefore, the rules primarily apply to non-agricultural lands, such as urban or commercial properties.

Ownership Of Pre-Constructed Property
Non-residents are allowed to purchase pre-constructed properties in urban areas of Himachal Pradesh. However, it is important to note that the ownership rights are limited to the constructed structure itself, and not the land on which it is built. The land continues to be owned by a permanent resident of Himachal Pradesh.

Bonafide (Domicile) Policy
The Bonafide (Domicile) Policy 1972 in Himachal Pradesh provides certain privileges to individuals who have been residing in the state for a specific duration, typically up to 20 years. These privileges may include preferential treatment in certain aspects, but they do not grant unrestricted rights to purchase property.

Section 118 of the Himachal Pradesh Tenancy and Land Reforms Act
Section 118 of the Himachal Pradesh Tenancy and Land Reforms Act, 1972 governs the sale and purchase of land and constructed property in the state. While it does not impose an absolute ban on such transactions by outsiders, it requires obtaining permission from the state government. This permission is typically granted on a case-by-case basis, subject to fulfilling certain conditions and requirements.

Seeking Permission
To purchase property in Himachal Pradesh as a non-resident, one must apply for permission from the state government under Section 118 of the Himachal Pradesh Tenancy and Land Reforms Act. The application process usually involves providing relevant documents, fulfilling eligibility criteria, and paying any required fees.

Legal Assistance and Due Diligence
Given the complexities surrounding property purchases in Himachal Pradesh, it is advisable to seek legal assistance and conduct thorough due diligence. Consulting with a real estate lawyer or professional can help navigate the legal requirements, understand the eligibility criteria, and ensure compliance with the regulations.

Rules To Purchase Property In Himachal Pradesh
In Himachal Pradesh, whether a buyer is a resident or a non-resident, they do not need to seek permission to purchase or lease a built-up property within the jurisdiction of a municipal corporation, notified area committee, or cantonment board. However, certain restrictions apply to land located outside these municipal limits. In such cases, the buyer must submit an application to the government, clearly stating the purpose of the land purchase. The government grants permission based on its satisfaction with the stated purpose and the individual’s ability to carry out the proposed project.

It is important to note that land in Himachal Pradesh can be acquired for various purposes, such as establishing industrial units, educational institutes, or tourism facilities. Buyers can obtain up to four acres of land for agricultural activities in the state. However, specific conditions apply when it comes to purchasing residential properties., The Land Reforms Act does not prohibit the purchase of residential properties as long as the size does not exceed 500 square metres.

However, an important condition is that the buyer should not already own a vacant plot or property in the municipal areas of Himachal Pradesh.

If you are planning to buy land for constructing a house, the minimum required size should be 150 square metres. For shops, the minimum threshold is set at 300 square metres.

These regulations and guidelines aim to ensure proper utilisation and management of land in Himachal Pradesh. When considering a property purchase in the state, it is advisable to seek advice from legal professionals or experts who are well-versed in the specific regulations and criteria applicable to such transactions.