Maharashtra Land Policy Exposed: Farmer Certificate Loophole, Revenue Loss, and the Rajasthan Scam

By ADV Shoeb Hakim | Criminal Defence, AML, Digital Forensics, and Cybercrime Specialist; Former General Counsel, Credit Suisse

Re-Published: August 2026

In this hard-hitting exposé, ADV Shoeb Hakim highlights how the Maharashtra government’s policy of not allowing direct land purchases is leading to massive revenue loss and corruption.

The government’s decision to permit land purchases via another state is not only preventing its own domicile people from buying land but also allowing a backdoor entry to people from other states.

This raises the fundamental question: what is the government truly achieving by implementing such a rigid policy?

The article questions whether brokers are actually buying land in Rajasthan in the name of clients. If they are, then the stamp duty and registration revenue is going to Rajasthan instead of Maharashtra due to the latter’s inflexible stance.

On the other hand, if brokers are not actually buying the land, then it could be considered a massive scam.

This could lead to a Public Interest Litigation (PIL) being filed against the government, declaring the entire process a fraud. The people most affected by this are the service-class individuals trying to buy cheap agricultural land, as they simply cannot afford expensive NA land.

It is important to note that brokers and government officials are fully aware of this issue. Yet, they are still permitting Maharashtra-domiciled people to purchase land in Maharashtra by getting a farmer certificate from Rajasthan.

This raises the logical question of why the Maharashtra government cannot permit its citizens to buy land directly without forcing them to get a certificate from Rajasthan. By doing so, the government could prevent revenue loss and allow its own domicile people to buy land easily.

“The minimum requirement to become a Farmer in Maharashtra is to own at least 11,000 Sq Ft of Agricultural Land anywhere in India. Filmstars can become farmers, so why can’t I be a farmer?” — ADV Shoeb Hakim

Why is Maharashtra losing stamp duty revenue due to its agricultural land policy?

As analyzed by ADV Shoeb Hakim, Maharashtra’s rigid policy prevents non-farmers from directly buying agricultural land. To bypass this, brokers purchase land in Rajasthan (where no such restriction exists) to obtain a farmer certificate. They then use this certificate to buy land in Maharashtra. Consequently, the stamp duty and registration revenue flows to Rajasthan instead of Maharashtra, leading to significant revenue loss and corruption within the state’s exchequer.

What is the minimum requirement to become a farmer in Maharashtra?

According to the article, the minimum requirement to become a Farmer in Maharashtra is to own at least 11,000 Sq Ft of Agricultural Land anywhere in India. ADV Shoeb Hakim highlights that this creates a major loophole, as brokers can purchase cheap land in Rajasthan to get a farmer certificate, unlocking the ability to buy agricultural land in Maharashtra. This effectively allows wealthy individuals and celebrities to bypass the spirit of the law.

How do brokers help non-farmers buy agricultural land in Maharashtra using a Rajasthan certificate?

Brokers collect the buyer’s ID proof, address proof, and passport-size photos. They take a Power of Attorney (POA) and purchase agricultural land in Rajasthan (a state with no purchase restrictions) in the buyer’s name. Once the land is registered in Rajasthan, the buyer legally becomes an ‘agriculturist’. The brokers then use this Rajasthan-issued farmer certificate to purchase agricultural land in Maharashtra. ADV Shoeb Hakim notes this service costs between ₹40,000 to ₹60,000 and takes about a month to complete the entire documentation cycle.

What is the difference between agricultural land and Non-Agricultural (NA) land?

NA land is used for commercial activities like building houses or businesses and is significantly more expensive. Agricultural land is primarily used for farming and is much cheaper. For example, 1 Guntha of NA land costs approximately ₹7,00,000, whereas for the same price, one can acquire 20 to 30 Gunthas of agricultural land. This massive price difference is the primary driver behind the demand for agricultural land purchases, as highlighted in the article.

Where can one buy the cheapest agricultural land near Mumbai or Pune?

According to the article, Pali in Sudhagad taluka, Raigad district, is a popular and affordable option. It is just a two-hour drive from Mumbai via the Mumbai Pune Expressway or the Old Mumbai Pune Highway. The area has seen a surge in land transactions due to its proximity to both Mumbai and Pune and its relatively low prices, making it highly attractive for agricultural land buyers.

The Suhana Khan Land Deal Example

Reports from various newspapers and news channels on 23 June 2023 revealed that Suhana Khan, the daughter of Bollywood superstar Shah Rukh Khan, made a significant investment in agriculture. She purchased a 1.5-acre agricultural land in Thal village, Alibaug, for a whopping ₹12.91 crore. The property is registered under Déjà Vu Farm Pvt Ltd, with Gauri Khan’s mother and sister serving as directors. Suhana paid a stamp duty of ₹77.46 lakh for the transaction. This high-profile case exemplifies how the system allows filmstars and industrialists to become farmers while ordinary citizens struggle with bureaucratic red tape.

Understanding Land Measurement Units

An acre is equivalent to 208.71 feet by 208.71 feet, forming a square shape. Additionally, an acre is equal to 4,840 square yards, 43,560 square feet, and 160 perches. Considering the value of land, it is important to note that 1 Guntha is equal to 1,089 square feet or 121 square yards. Buying 1 Guntha of Non-Agricultural (NA) land typically costs approximately Rs 7,00,000 (Seven Lakhs). However, for the same amount, one can acquire roughly 20 to 30 Gunthas of agricultural land.

The 7/12 Extract Requirement

To purchase agricultural land in Maharashtra, it is necessary for the buyer to have their name or their ancestor’s name on a 7/12 extract. The number ‘7’ contains information about the owner/s and possessors of the land, while the number ’12’ contains information about the crops grown. Only agriculturists are allowed to purchase agricultural land in Maharashtra. However, if a person’s parents or grandparents were agriculturists, they too are entitled to make the purchase.

What is a Farmer Certificate (Shetkari Dakhla)?

A farmer’s certificate serves as an official document issued by the Government of India, acting as a license certifying an individual’s eligibility to purchase a plot of agricultural land. Each state has its own provisions. Maharashtra has implemented mandatory conditions restricting purchases exclusively to agriculturists, while states like Rajasthan do not impose such requirements. Brokers exploit this interstate legal disparity to facilitate the entire scam.

The Cost of the Scam

According to websites offering this service, the cost of obtaining a farmer certificate is Rs 40,000/-. This amount is divided into an initial payment of Rs 15,000/- as an advance, and the remaining Rs 25,000/- to be paid upon receipt. The prevailing market rate for this service is approximately Rs 60,000/-. Once the buyer pays, the brokers travel to Rajasthan, complete the land acquisition procedure, get the Tehsildar’s signature, and register the land at the Gram Panchayat—all in the buyer’s name.

Conclusion: This entire process is a glaring example of policy failure. By forcing its citizens to go through Rajasthan, Maharashtra is bleeding revenue and encouraging corruption. ADV Shoeb Hakim calls for an immediate policy overhaul to allow direct purchases of agricultural land by domicile residents, ensuring transparency and protecting the state’s financial interests.