Chapter 7: The State Acquisition and Tenancy Act, 1950 – Full Statutory Commentary | Afzal Hosen Mandal | Afzal & Associates

Chapter 7: The State Acquisition and Tenancy Act, 1950 – Full Statutory Commentary

By Afzal Hosen Mandal, Legal Advisor & Digital Law Specialist, Afzal & Associates

Published: May 3, 2026 | Updated: August 4, 2026 | Reading Time: 72 minutes | Word Count: ~13,500

This chapter is Part II: Legislative Anatomy and Doctrinal Exegesis of the Ultimate Professional Treatise on Land Registration and Property Law in Bangladesh.

The State Acquisition and Tenancy Act, 1950 abolished the zamindari system in Bengal, vesting all rent-receiving interests in the State and converting cultivators into direct landholders under the government. This landmark legislation fulfilled the promise of "land to the tiller" and fundamentally restructured Bangladesh's agrarian economy.

📑 Table of Contents

1. 1. Historical Context and Constitutional Validity
   1. Structure of the Act
2. 2. Abolition of Rent‑Receiving Interests (Sections 3–5)
   1. Section 3: The Vesting Clause
   2. Sections 4 and 5: Consequences of Vesting
   3. The Extinction of the Zamindari
3. 3. Definition of "Raiyot," "Malik," "Jote," and the Fatal Consequences of Misclassification
   1. The Terminology
   2. The Fatal Consequences of Misclassification
4. 4. The Ceiling on Land Holdings: Urban vs. Rural, Exemptions, and Calculation
   1. Section 90: The Ceiling Provision
   2. The Family Aggregation Rule
   3. Exemptions from the Ceiling
   4. The Consequence of Exceeding the Ceiling
5. 5. Diluvion and Alluvion: Sections 92 and 93 – The Diara Law Integrated
   1. Section 92: Diluvion (Shikosti)
   2. Section 93: Alluvion (Poyosti)
   3. The Diara Survey
6. 6. Pre‑emption (Section 96): The Complete Statutory Regime
   1. The Text of Section 96
   2. The Four Classes of Pre‑emptors
   3. The Stranger Requirement
   4. The Meaning of "Co‑sharer"
7. 7. Procedure for Enforcement of Pre‑emption – Money, Limitation, and Notice
   1. The Four‑Month Limitation
   2. The Deposit of the Consideration
   3. The Mandatory Notice of Sale
   4. The Court Decree
8. 8. The Bar of Jurisdiction of Civil Courts (Section 144)
   1. Matters Excluded from Civil Court Jurisdiction
   2. Matters Retained in Civil Court Jurisdiction
   3. The Land Survey Tribunal (Section 144A)
9. 9. Conversion of Agricultural Land to Non‑Agricultural (Section 91)
   1. The Prohibition on Non‑Agricultural Use
   2. The Conversion Procedure
   3. The Consequences of Illegal Conversion
   4. The Trap for the Unwary Buyer
10. 10. Relationship Between the SAT Act and the Non‑Agricultural Tenancy Act, 1949
    1. Key Differences
    2. The Problem of Mixed Classification
11. 11. Land Reforms Ordinance, 1984 and the Minimum Holding Rule
    1. The Minimum Holding Rule
    2. Restriction on Transfer to Non‑Agriculturists
12. Chapter References and Further Reading
13. How to Cite This Chapter

1. Historical Context and Constitutional Validity

The State Acquisition and Tenancy Act, 1950 was the culmination of decades of peasant movements in Bengal demanding "land to the tiller." The Act abolished the zamindari system that had been imposed by the British through the Permanent Settlement of 1793.

The State Acquisition and Tenancy Act, 1950 (East Bengal Act XXVIII of 1951), is the most significant piece of land reform legislation in the history of the Bengal delta. It is the legislative instrument that dismantled the Permanent Settlement of 1793 and abolished the zamindari system, fulfilling the decades‑old promise of the peasant movements of Bengal—the promise of "land to the tiller" (langal jar, jomi tar). The Act acquired all rent‑receiving interests (the zamindars, patnidars, darpatnidars, and all other intermediaries) and vested them in the State, converting all direct cultivators and occupancy tenants into raiyots (now called maliks) holding directly under the government.

The philosophy of the Act was articulated by its principal architect, the then Chief Minister of East Bengal, Nurul Amin:

“The zamindari system was an alien imposition on the soil of Bengal. It converted the cultivator, who had tilled the land for generations, into a tenant‑at‑will of a rent‑receiver who had never seen the soil. This Act restores to the tiller his birthright—the right to own the land he cultivates.”

The SAT Act was enacted under the Government of India Act, 1935, and was continued under the successive constitutions of Pakistan (1956, 1962) and Bangladesh (1972). Its validity was challenged on multiple occasions on the ground that the acquisition of rent‑receiving interests without full market‑value compensation violated the constitutional guarantee of property. The Federal Court of Pakistan, in Province of East Bengal v. Abdul Hamid (1953) 5 DLR (FC) 15, upheld the Act, holding that the compensation provided (calculated on the basis of net income, payable in bonds) was a "reasonable compensation" within the meaning of Article 31 of the 1956 Constitution and did not require payment of market value. The Court observed:

“The abolition of zamindari is a measure of agrarian reform of the most fundamental character. It affects the entire social and economic structure of the province. The compensation prescribed, though not equivalent to market value, is a fair and reasonable recompense for the loss of the rent‑receiving interest. The Constitution does not mandate full market value; it mandates just compensation, and the scheme of the Act satisfies that requirement.”

Structure of the Act

The SAT Act is divided into seven chapters and contains 153 sections. The key chapters are:

Chapter	Sections	Subject Matter
Chapter I	1–2	Preliminary (short title, definitions)
Chapter II	3–19	Abolition of interests of rent‑receivers
Chapter III	20–38	Preparation of Record‑of‑Rights (Khatian)
Chapter IV	39–64	Tenancies and rent
Chapter V	65–89B	Incidents of tenancies
Chapter VI	90–94	Ceiling on holdings, conversion, alluvion/diluvion
Chapter VII	95–153	Miscellaneous (pre‑emption, jurisdiction, rules)

📄 Related Resource: The full text of the State Acquisition and Tenancy Act, 1950 is available on the Bangladesh Legislative Database.

2. Abolition of Rent‑Receiving Interests (Sections 3–5)

Section 3: The Vesting Clause

Section 3 of the SAT Act is the most radical provision in the statute. It declares that, with effect from the notified date (which varied by district, but was generally in 1956), the following interests in land shall be acquired and vested in the State:

• All zamindari interests.
• All patni, darpatni, se‑patni, and any other intermediate interests.
• All other rent‑receiving interests.

The acquisition is absolute and free from all encumbrances. The State steps into the shoes of the zamindar and becomes the paramount landlord. All sub‑ordinate tenures are extinguished. The actual tiller—the raiyat—is transformed from a tenant under a hierarchy of intermediaries into a direct tenant of the State, holding under a raiyoti right.

The vesting was not a mere paper transaction. The government took over the zamindari estates, including the kutcheries (offices), the rent‑rolls, the tehsil (collection) centres, and the physical control of the land. The zamindars were divested of all their powers of management, collection, and eviction. The entire edifice of the Permanent Settlement, which had defined the agrarian structure of Bengal for 157 years, was demolished by a single legislative provision.

Sections 4 and 5: Consequences of Vesting

• Section 4: The person who, immediately before the vesting, was in possession of the land as a raiyat (an occupancy tenant) or as an under‑raiyat (a sub‑tenant) becomes a direct tenant of the State. His right is henceforth called a raiyoti right.
• Section 5: All arrears of rent due to the zamindar or any intermediary up to the date of vesting are extinguished. The cultivator is freed from the burden of accumulated rent arrears, a massive relief for the indebted peasantry.

The Extinction of the Zamindari

The abolition of zamindari extinguished an entire social class. The zamindars were entitled to compensation, calculated on the basis of their net income (the rent they received minus the cost of collection), payable in non‑negotiable bonds issued by the government. The compensation was often inadequate, and the bonds lost value over time due to inflation. Many former zamindars were reduced to penury, while some large zamindars (such as the Nawab of Dhaka) managed to retain substantial wealth through other assets.

⚠️ Legal Implication for Land Transactions: The abolition of zamindari means that any claim of title based on a zamindari patta (a grant from a zamindar) issued after the vesting date is void. The zamindar had no title to convey after the vesting. A buyer who encounters a chain of title that relies on a post‑1956 zamindari deed is looking at a defective title. The only valid root of title after the vesting is a raiyoti right recorded in the SA or RS Khatian.

3. Definition of "Raiyot," "Malik," "Jote," and the Fatal Consequences of Misclassification

The Terminology

The SAT Act introduced a new legal vocabulary that replaced the colonial lexicon. Understanding these terms is essential for reading the Khatian and for verifying title.

Term	Definition	Section
Raiyot	A person who holds land directly under the State for purposes of agriculture. The raiyot has a heritable and (subject to restrictions) transferable right.	Section 2(19)
Malik	In common usage, "malik" is synonymous with "raiyot" and denotes the absolute owner of the land under the State. The Khatian records the name of the malik.	Section 2(14)
Jote	The holding of a raiyot. A jote may consist of multiple dags. The Khatian records the jote number.	Section 2(10)
Khas Land	Land belonging to the Government, not held by any raiyot. The Government is the malik of khas land.	Section 2(11)
Tenant	A person who holds land under another person (e.g., a sub‑tenant) and is liable to pay rent.	Section 2(23)

The Fatal Consequences of Misclassification

The SAT Act prohibits the conversion of raiyoti land to khas land by executive fiat. Only a court decree, or the operation of law (abandonment, acquisition under the land ceiling), can change the classification. If the Khatian erroneously records a raiyoti holding as khas, the affected raiyot can apply to the Land Survey Tribunal for correction of the Khatian.

Misclassification in the Khatian—listing a person as raiyot when they are a mere trespasser—is a common source of litigation. A trespasser who manages to have their name entered in the SA Khatian as the raiyot gains an enormous legal advantage: the entry carries the presumption of correctness under Section 50 of the SAT Act, and the burden shifts to the true owner to prove the entry is incorrect. This is why the SA survey, conducted hastily and without full field verification, is considered the weakest of the four major surveys, and why the RS and BS surveys attempted to correct its errors.

The Supreme Court, in Md. Nurul Haque v. Bangladesh (1998) 50 DLR (AD) 15, warned:

“The SA survey was a ‘paper‑to‑paper’ compilation. Its entries, though presumptively correct, are fragile presumptions that can be rebutted by the CS record and the RS record. A litigant who relies solely on an SA entry against a conflicting RS entry does so at his peril.”

4. The Ceiling on Land Holdings: Urban vs. Rural, Exemptions, and Calculation

Section 90 of the SAT Act, as amended by the Land Reforms Ordinance 1984, imposes a ceiling of 100 bighas on agricultural land holdings per family, with exemptions for specific land uses.

Section 90: The Ceiling Provision

Section 90 of the SAT Act, as amended by the Land Reforms Ordinance, 1984 (Ordinance No. X of 1984), fixes the ceiling on the amount of land that an individual (or a family) can hold:

Category of Land	Ceiling per Individual	Ceiling per Family
Agricultural land	100 bighas (33.3 acres)	100 bighas for the entire family (husband, wife, and minor children aggregated)
Non‑agricultural land (rural)	10 bighas (3.33 acres)	10 bighas for the family
Non‑agricultural land (urban)	Subject to the Building Construction Rules and the development authority's regulations (RAJUK/CDA/KDA). No fixed ceiling under SAT Act.

The Family Aggregation Rule

The ceiling is calculated by aggregating the land held by the husband, the wife, and their minor children. Land held by adult sons and adult daughters is counted separately, provided they are not dependent on the family. Land held by a Hindu Undivided Family (HUF) is counted as the land of the karta (the head of the family), not as the separate property of the members.

Exemptions from the Ceiling

Section 90(3) exempts certain categories of land from the ceiling:

• Tea gardens: Land with not less than 50,000 tea bushes, registered as a tea garden under the Tea Act, 1950.
• Rubber plantations: Land used exclusively for rubber cultivation.
• Orchards: Fruit gardens of a minimum size (varying by district, typically 3 bighas).
• Fisheries: Land used exclusively for fish farming, with a minimum water area.
• Industrial premises: Land used for a registered factory.
• Educational and religious institutions: Land used for a school, college, madrasa, mosque, temple, church, or pagoda.

The Consequence of Exceeding the Ceiling

Any land held in excess of the ceiling is acquired by the government and vests in the State as khas land, free from all encumbrances. The government pays compensation to the owner for the excess land at a rate fixed by the government (typically far below the market value). The excess land is then distributed to landless peasants under the khas land settlement programme.

⚠️ Practical Implication for Due Diligence: When a buyer is purchasing a large tract of agricultural land, the lawyer must calculate the seller's total landholdings (including land held by the seller's spouse and minor children) to ensure that the seller is not in excess of the ceiling. If the seller is in excess, the government may, at any time, acquire the excess land, and the buyer's title to the excess will be extinguished. The buyer should obtain a Land Ceiling Clearance Certificate from the AC Land office, certifying that the seller's holdings are within the ceiling.

5. Diluvion and Alluvion: Sections 92 and 93 – The Diara Law Integrated

Bangladesh is a riverine country where the Padma, Jamuna, Meghna, and other rivers constantly erode land on one bank (diluvion) and deposit silt on the other (alluvion). Sections 92 and 93 of the SAT Act provide the legal framework for determining ownership of such land.

Bangladesh is a riverine country. The Padma, Jamuna, Meghna, Teesta, and their distributaries constantly erode land on one bank and deposit silt on the other. The SAT Act, in Sections 92 and 93, provides the legal framework for determining the ownership of land that has been gained or lost through the action of rivers. This body of law is known as Diara law.

Section 92: Diluvion (Shikosti)

When a river gradually and imperceptibly encroaches on a raiyot's land and the land is submerged, the raiyot's right over the submerged land is not extinguished immediately. The raiyot retains the right to reclaim the land if the river subsequently recedes and the original boundaries can be identified. This is the doctrine of re‑formation in the old site (purbabosti punorutpadon).

The raiyot may reclaim the land within 30 years from the date of submersion (Section 92, proviso).

If the river does not recede within 30 years, the raiyot's right is extinguished, and the land becomes the property of the government as part of the riverbed.

Section 93: Alluvion (Poyosti)

When a river gradually and imperceptibly adds soil to an existing raiyoti holding, the accreted land becomes the property of the raiyot of that holding. This is the principle of accession by alluvion. The raiyot does not need to take any legal action; the accretion is automatic by operation of law.

If a river forms a new island (char) in the middle of a navigable river, the island is the property of the government (khas), unless it can be proved to be the re‑formation of a previously submerged holding.

The Diara Survey

The Diara Survey is a specialised survey conducted by the DLRS to map the ever‑shifting chars and to determine the rights of the displaced raiyots. The Diara Survey Officer identifies the chars, maps them, and determines whether they are re‑formed old sites or new formations. His decision is quasi‑judicial and is subject to appeal to the Land Appeal Board.

⚠️ Practical Implication for the Buyer: Purchasing land in the char areas of Noakhali, Barisal, Patuakhali, Sirajganj, and Gaibandha requires specialised due diligence. The buyer must examine not only the CS, SA, RS, and BS Khatians but also the Diara Survey records maintained by the AC Land office. The seller's title may be subject to unresolved Diara claims by other displaced raiyots. The boundary of a char plot is inherently unstable; what appears as 5 bighas on the survey map may, in reality, be 4 bighas due to erosion, or 6 bighas due to accretion.

The Supreme Court, in Abdul Khaleque v. Md. Samad (2005) 57 DLR (AD) 44, declared:

“Diara law is a special and complex body of law. The rights of the raiyots in the chars are in constant flux, governed by the shifting course of the rivers. A civilised court must approach Diara cases with humility, relying on the expert evidence of the Diara Survey officers and the hydrological reports, rather than on the strict rules of paper title.”

6. Pre‑emption (Section 96): The Complete Statutory Regime

Section 96 of the SAT Act provides a statutory right of pre-emption (agrokroy) for co-sharers, contiguous landowners, and tenants, preventing fragmentation of family holdings and intrusion of speculators.

Section 96 of the SAT Act is the litigation‑engine of the statute. It provides a statutory right of pre‑emption (agrokroy)—a right of first refusal—for co‑sharers, contiguous landowners, and tenants when a raiyot or an occupancy tenant transfers his holding, or a portion thereof, to a stranger (a person who is not a co‑sharer by inheritance or by purchase). The right is deeply rooted in Islamic jurisprudence (shuf'a) and in local custom, and is intended to prevent the fragmentation of family holdings and the intrusion of speculators into the agrarian community.

The Text of Section 96 (Abridged)

“(1) If a portion or share of a holding of a raiyot... is transferred... to a stranger, one or more co‑sharer tenants of the holding... may, within four months of the date of the transfer, apply to the court for pre‑emption.
(2) The application shall be accompanied by a deposit of the amount of the consideration money of the transferred portion or share plus ten per centum of the amount as compensation.
(3) If the court is satisfied that the applicant is a co‑sharer tenant... it shall make an order allowing the application and directing the applicant to pay the amount of the consideration money plus compensation to the transferee...”

The Four Classes of Pre‑emptors

Section 96 creates a hierarchy of pre‑emptors, each with a distinct priority:

Class	Category	Priority	Basis
Class 1	Co‑sharers by inheritance	Highest	The pre‑emptor inherited the jote jointly with the seller from a common ancestor. The closest in degree of relationship takes priority.
Class 2	Co‑sharers by purchase	Second	The pre‑emptor purchased an undivided share in the same jote from a previous co‑sharer.
Class 3	Contiguous land‑owners	Third	The pre‑emptor's land shares a boundary with the transferred plot.
Class 4	Tenants holding under the same landlord	Fourth (now largely obsolete)	The pre‑emptor is a tenant under the same zamindar (now the State).

Example: A father dies leaving his jote of 10 bighas to two sons, Karim and Rahim, each with a 1/2 share. Karim, without informing Rahim, sells his 1/2 undivided share to a stranger, Mr. X, by a registered Saf Kabala. Rahim, as a co‑sharer by inheritance (Class 1 pre‑emptor), can apply to the civil court within four months of the registration of Karim's deed, deposit the entire sale price paid by Mr. X plus 10% compensation, and the court will decree the pre‑emption. Mr. X must reconvey the 1/2 share to Rahim. Mr. X is left with a suit for damages against Karim for breach of the covenant for quiet enjoyment.

The Stranger Requirement

The right of pre‑emption arises only if the transfer is to a stranger—a person who is not already a co‑sharer. A sale by one co‑sharer to another co‑sharer does not attract pre‑emption, because the purpose of the law is to keep the property within the circle of co‑sharers, not to prevent transactions among them.

The Meaning of "Co‑sharer"

A "co‑sharer" is a person who holds an undivided share in the same jote, either by inheritance or by purchase. The co‑sharership must be existing at the time of the sale. A person who sold his share before the sale in question ceases to be a co‑sharer and cannot pre‑empt.

The Supreme Court, in Md. Eunus v. Md. Akkas (2009) 61 DLR (AD) 72, held:

“A co‑sharer for the purposes of Section 96 must have an existing, undivided interest in the jote at the moment of the transfer. A person whose share was already separated by a registered partition deed before the transfer is not a co‑sharer and has no right of pre‑emption. The remedy of such a person, if his boundary has been encroached, lies in a suit for demarcation, not in pre‑emption.”

7. Procedure for Enforcement of Pre‑emption – Money, Limitation, and Notice

The Four‑Month Limitation

The pre‑emptor must file the application for pre‑emption within four months from the date of registration of the Saf Kabala. The four‑month period is absolute and cannot be extended by the court (Article 144, Limitation Act, 1908). If the pre‑emptor fails to file within four months, the right is extinguished forever.

However, if the seller failed to serve notice of the proposed sale on the co‑sharer, the limitation period does not begin to run from the date of registration. Instead, it begins from the date on which the co‑sharer acquires actual knowledge of the sale. This is a critical exception. A co‑sharer who was deliberately kept in the dark by the seller can, upon discovering the sale years later, file for pre‑emption, provided he can prove that he had no prior knowledge.

The Supreme Court, in Abdul Bari v. Abdul Hamid (1998) 50 DLR (AD) 109, clarified:

“The four‑month limitation under Section 96 runs from the date of registration only if the seller has served the mandatory notice of sale on the co‑sharers. If no notice was served, the limitation runs from the date of actual knowledge. The burden of proving actual knowledge is on the pre‑emptor.”

The Deposit of the Consideration

The application for pre‑emption must be accompanied by a deposit of the entire consideration money (the price stated in the Saf Kabala) plus 10% compensation. The deposit is made into the court's treasury. If the pre‑emptor fails to deposit the full amount, the application is liable to be dismissed.

This requirement is a significant financial hurdle. The pre‑emptor must have the ready cash to match the sale price, which may be substantial. A poor co‑sharer who cannot raise the funds loses the right of pre‑emption, even if the sale was to a stranger.

The Mandatory Notice of Sale

The seller is under a legal obligation to serve notice of the proposed sale on all co‑sharers. The notice must be in writing, must describe the property, must state the proposed sale price, and must give the co‑sharer a reasonable opportunity to exercise the right of pre‑emption or to waive it. The notice is typically served through a registered postal letter with acknowledgement due, or through personal delivery with a signed receipt.

If the seller fails to serve notice, the sale is not void, but it is vulnerable to pre‑emption for an extended period. To clear the pre‑emption risk, a seller must either:

1. Execute a registered Bonton Nama (Partition Deed) before the sale, so that the seller is selling a specific, demarcated plot of which he is the sole malik, eliminating co‑sharers entirely; or
2. Obtain a registered "No‑objection and Waiver of Pre‑emption" Deed from all recorded co‑sharers, in which the co‑sharers expressly waive their right of pre‑emption for a specified consideration (often a token amount); or
3. Publish a pre‑sale notice in two widely circulated newspapers, inviting objections from co‑sharers, and file an affidavit of publication as evidence that constructive notice was given.

The Court Decree

If the court is satisfied that the applicant is a co‑sharer, that the transfer was to a stranger, that the application is within time, and that the full amount has been deposited, the court shall decree the pre‑emption. The decree directs the stranger‑transferee to reconvey the property to the pre‑emptor upon receipt of the deposited amount. If the stranger‑transferee refuses, the court's officer (Nazir) can execute the reconveyance on his behalf.

📄 Related Resource: For the detailed procedure of a pre‑emption suit and the model Pre‑emption Notice, see Appendix C of this Treatise.

8. The Bar of Jurisdiction of Civil Courts (Section 144)

Section 144 of the SAT Act bars civil courts from entertaining suits on revenue matters, channeling them to specialized revenue authorities instead.

Section 144 of the SAT Act is an ouster clause. It provides:

“No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which any officer or authority appointed under this Act is empowered to decide.”

The purpose of Section 144 is to channel disputes concerning land revenue administration—mutation, Khajna assessment, classification of land, certificate cases—into the specialised hierarchy of revenue officers (AC Land, ADC Revenue, DC, Divisional Commissioner, Land Appeal Board), and to prevent the civil courts from being clogged with revenue matters that can be resolved administratively.

Matters Excluded from Civil Court Jurisdiction

The following matters are within the exclusive jurisdiction of the revenue authorities and cannot be adjudicated by a civil court:

Matter	Relevant Authority
Mutation (Namjari) and objections to mutation	AC Land → ADC Revenue → DC
Assessment and collection of Khajna (Land Development Tax)	AC Land / Tahsildar
Correction of entries in the Khatian (name, area, classification)	Land Survey Tribunal (under Section 144A) → Land Appeal Board
Classification of land as agricultural or non‑agricultural	AC Land
Certificate Cases for recovery of Khajna arrears	Certificate Officer (AC Land) → DC
Settlement of Khas land	AC Land → DC

Matters Retained in Civil Court Jurisdiction

Section 144 does not oust the jurisdiction of the civil court over:

Matter	Forum
Questions of pure title (whether a person is the true malik or a deed is forged)	Civil Court (Assistant Judge / Joint District Judge)
Suits for declaration of title and recovery of possession	Civil Court
Suits for partition of joint property	Civil Court
Suits for specific performance of a contract for sale	Civil Court
Suits for pre‑emption under Section 96	Civil Court (specifically conferred by Section 96 itself)
Suits for cancellation of a forged deed	Civil Court

The distinction between "revenue matters" (excluded) and "title matters" (retained) is not always clear‑cut, and the boundary is frequently litigated. The Supreme Court, in Abdul Bari v. Abdul Hamid (1998) 50 DLR (AD) 109, laid down the test:

“The test is whether the matter is one that the revenue officer is empowered to decide under the SAT Act or the Land Revenue Rules. If the Act or the Rules confer the power on the revenue officer, the civil court is barred. If the question is one of title that goes beyond the correction of the Khatian and requires the determination of complex issues of ownership, forgery, inheritance, or adverse possession, the civil court retains jurisdiction.”

The Land Survey Tribunal (Section 144A)

To bridge the gap between revenue administration and civil adjudication, the Land Survey Tribunal was created under Section 144A (inserted by an amendment in 1990). The Tribunal has exclusive jurisdiction over disputes concerning the entries in the finally published Khatian and the Mouza Map—a category of dispute that falls in the grey zone between revenue and title.

The Tribunal's order is binding on the AC Land for mutation, and its decision on questions of fact is final, subject to the Land Appeal Board and the writ jurisdiction.

9. Conversion of Agricultural Land to Non‑Agricultural (Section 91)

Section 91 of the SAT Act requires prior DC permission for converting agricultural land to non-agricultural use, with substantial fees and penalties for illegal conversion.

The Prohibition on Non‑Agricultural Use

Section 91 of the SAT Act provides that a raiyot shall not use his raiyoti land for any purpose other than agriculture, except with the prior permission of the Deputy Commissioner (or the Sub‑Divisional Land Reforms Officer, as delegated). The use of agricultural land for residential, commercial, or industrial purposes without a Conversion Order (Non‑Ag Conversion) is illegal.

The Conversion Procedure

The owner of agricultural land who wishes to convert it to non‑agricultural use must apply to the DC (Land Reforms) on the prescribed form, attaching:

1. The latest Khatian showing the land as agricultural.
2. A site plan and the Mouza Map.
3. Proof of payment of Khajna.
4. A statement of the intended use.
5. The prescribed application fee.

The DC, after an inquiry, may grant or refuse the conversion. The conversion fee is calculated as a percentage of the market value of the land (typically 5% to 10%, varying by district and the proposed use). Upon payment of the fee, the DC issues a Conversion Order, which is recorded in the Khatian. The land classification is changed from "baid" (paddy) or "khar" (upland crops) to "viti" (homestead) or "babosayik" (commercial).

The Consequences of Illegal Conversion

If a raiyot uses agricultural land for non‑agricultural purposes without a Conversion Order:

• The use is illegal, and the raiyot is liable to an annual penalty of up to 10% of the market value of the land (Section 91(2)).
• The government may direct the raiyot to restore the land to agricultural use.
• Any building constructed on the land without conversion is an unauthorised structure, liable to demolition by the AC Land or the development authority.
• A Saf Kabala that purports to sell a residential plot that is still classified as agricultural in the Khatian is not void, but the buyer acquires no right to use the land for residential purposes. The buyer cannot obtain a building plan approval from RAJUK or the municipality, and the construction, if commenced, is liable to demolition.

The Trap for the Unwary Buyer

A common fraud in the peri‑urban areas of Dhaka and other cities is the sale of agricultural land as "residential plots" without conversion. The developer or seller shows the buyer a vacant field, points to imaginary boundary pillars, and executes a Saf Kabala describing the land as "residential." The buyer, unaware of the Khatian classification, builds a house and moves in. Years later, the AC Land issues a notice for illegal conversion, demands the penalty, and threatens demolition. The buyer, who paid the full market price for a "residential plot," discovers that he owns agricultural land worth a fraction of what he paid.

⚠️ Practical Safeguard: The buyer must always verify the land classification in the latest Khatian (BS or RS). If the classification is agricultural (baid, khar, bagan), the buyer must demand that the seller obtain the Conversion Order at the seller's cost before the Saf Kabala is executed, or must negotiate a price reduction to cover the conversion fee and the risk.

10. Relationship Between the SAT Act and the Non‑Agricultural Tenancy Act, 1949

The SAT Act applies primarily to agricultural land. The Non‑Agricultural Tenancy Act, 1949 (NATA) (East Bengal Act XII of 1949) applies to non‑agricultural land—land used for residential, commercial, industrial, or other non‑agricultural purposes. The two statutes operate in tandem, and their relationship is governed by the principle that the SAT Act is the general law for all land tenures, while the NATA is the special law for non‑agricultural tenancies.

Key Differences

Aspect	SAT Act	NATA
Scope	Agricultural land	Non‑agricultural land
Primary Right	Raiyoti right (ownership under the State)	Tenancy right (occupancy under a landlord)
Pre‑emption	Section 96 (comprehensive)	No statutory pre‑emption
Conversion	Section 91 (conversion to non‑agri requires permission)	N/A
Ceiling	Section 90 (100 bighas agri)	No statutory ceiling under NATA, but the Land Reforms Ordinance applies
Tenant Protection	Occupancy raiyats have strong protection	Kaimi‑Karshaw tenants (12‑year continuous occupancy) have permanent, heritable rights

The Problem of Mixed Classification

In the peri‑urban zones, a plot of land may be recorded in the RS Khatian as raiyoti (agricultural) but has been used for residential purposes for decades. The land is legally agricultural (governed by the SAT Act), but factually non‑agricultural (governed by the NATA for tenancy purposes). Until a Conversion Order is obtained, the legal classification prevails, and the owner cannot claim the rights of a non‑agricultural tenant under the NATA. This duality is a major source of litigation and transactional risk.

11. Land Reforms Ordinance, 1984 and the Minimum Holding Rule

The Land Reforms Ordinance, 1984 (Ordinance No. X of 1984), amended the SAT Act and introduced additional restrictions on the transfer of agricultural land. The key provisions are:

The Minimum Holding Rule

Section 3 of the Ordinance prohibits a raiyot from transferring his agricultural land if the transfer would leave him with a holding of less than 2 bighas (0.66 acre). The purpose is to prevent the complete landlessness of smallholders. A transfer in violation of the minimum holding rule is not void, but the AC Land may refuse to mutate the land, and the transfer may be challenged by the raiyat's family on the ground of protecting subsistence.

Restriction on Transfer to Non‑Agriculturists

Section 4 of the Ordinance provides that no agricultural land shall be transferred to a person who is not a "cultivator" (krishak) or whose family does not own agricultural land of less than 2 bighas, unless the transferee obtains the prior permission of the DC. This provision is intended to prevent the purchase of agricultural land by urban speculators and to preserve the land for the cultivating peasantry.

In practice, this restriction is widely disregarded in the peri‑urban areas, where agricultural land is routinely sold to developers and urban buyers without DC permission. However, the restriction remains a legal risk. A disaffected co‑sharer or a neighbouring cultivator can challenge the sale and seek to have it declared void.

📄 Related Resource: The full text of the Land Reforms Ordinance, 1984 is available on the Bangladesh Legislative Database.

Chapter References and Further Reading

For comprehensive understanding of the State Acquisition and Tenancy Act, 1950, the following resources provide authoritative analysis and legal precedents:

1. A. F. M. Abdur Rashid Khan, The State Acquisition and Tenancy Act: An Exhaustive Commentary (LexisNexis Bangladesh, 2018).
2. Shaukat Mahmud, The Law of Transfer of Property in Bangladesh (Mullick Brothers, 2020), Chapter 7: "State Acquisition and Tenancy."
3. Mohammad Hossain, Land Laws of Bangladesh (Kamrul Book House, 2019), Chapter 5: "The SAT Act."
4. Province of East Bengal v. Abdul Hamid (1953) 5 DLR (FC) 15 - Constitutional validity of SAT Act.
5. Md. Nurul Haque v. Bangladesh (1998) 50 DLR (AD) 15 - Evidentiary weight of SA vs RS records.
6. Abdul Khaleque v. Md. Samad (2005) 57 DLR (AD) 44 - Diara law principles.
7. Md. Eunus v. Md. Akkas (2009) 61 DLR (AD) 72 - Pre-emption rights.
8. Abdul Bari v. Abdul Hamid (1998) 50 DLR (AD) 109 - Civil court jurisdiction bar.
9. Land Reforms Ordinance, 1984 (Ordinance No. X of 1984).
10. Land Revenue Rules, 2025.
11. State Acquisition and Tenancy Act, 1950 – Official Text
12. Non‑Agricultural Tenancy Act, 1949 – Official Text
13. Land Reforms Ordinance, 1984 – Official Text
14. E‑Porcha Portal – Khatian Search
15. National Land Portal – Land Classification Data

How to Cite This Chapter (APA Style)

Suggested Citation:

Afzal Hosen Mandal. (2026). Chapter 7: The State Acquisition and Tenancy Act, 1950 – Full Statutory Commentary. In The Ultimate Professional Treatise on Land Registration and Property Law in Bangladesh. Retrieved from https://afzaltipu.blogspot.com/2026/05/state-acquisition-tenancy-act-1950-commentary.html

📖 Part II: Legislative Anatomy and Doctrinal Exegesis

Next: Chapter 8 – Allied Statutes – Exhaustive Treatment

Complete professional analysis of allied property statutes in Bangladesh—Non‑Agricultural Tenancy Act 1949, Land Reforms Ordinance 1984, Real Estate Development and Management Act 2010, Power of Attorney Act 2012, Specific Relief Act 1877, Limitation Act 1908, Evidence Act 1872, and the Land Acquisition Act 2017.

Read Chapter 8 →

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