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Prohibition of Agricultural Tenancies: The laws in two states (Kerala and Jammu & Kashmir) place a virtual or absolute prohibition on the creation of agricultural tenancies. General prohibition/limited leasing. The laws in eight states -- Andhra Pradesh (Telengana area), Karnataka, Madhya Pradesh, West Bengal, Bihar, Himachal Pradesh, Uttar Pradesh, and Orissa -- are characterized by a general prohibition on future tenancies combined with an allowance of leasing by certain defined categories of landowners and/or under certain other conditions. In some cases, the legal effect of such general prohibitions is fairly limited because the exceptions are very broad. For example, in the Telangana area of Andhra Pradesh, landowners who own less than three times a 'family holding' may lease out land.30 This includes at least 95 percent of all landowners in Andhra Pradesh.31 In other states, the exceptions are much more narrowly defined. Forexample, Karnataka's legislation only allows soldiers and sailors to lease out their land. Most other states that have a general prohibition combined with defined exceptions fall between these two extremes; although they tend to be more similar to Karnataka, only allowing additional exceptions for minors, widows, unmarried women, female divorcees, physically disabled, imprisoned, and/or students. Madhya Pradesh and West Bengal are unique. Madhya Pradesh's exceptions to its general prohibition on leasing include a provision allowing any landowner to lease out their land for at least one year during a consecutive three-year period. West Bengal does not allow fixed-rent tenancies, but does allow sharecropping (although, because the law gives permanent rights to such sharecroppers, it creates a powerful chilling effect on the creation of future sharecropping relationships).

a€￠ Permissible leasing with ownership potential. Five states permit leasing, but with a stipulation that the tenant acquires a right of ownership or a right to purchase ownership after some specified period. These states include Assam, Gujarat, Haryana, Maharashtra, and Punjab. The time period ranges from one year in Gujarat and Maharashtra to six years in Haryana and Punjab.

a€￠ No prohibitions on leasing. Three states place virtually no prohibitions on leasing. These include the Andhra area of Andhra Pradesh, Rajasthan, and Tamil Nadu. Even in these states, however, provisions on maximum rent, minimum length of term, and tenants' rights to purchase land can have the effect of preventing landowners from renting out their land or pushing tenancies 'underground.'

Regulation of Rent
Nearly all state laws include provisions designed to limit the amount of rent payable by those tenants who are legally permitted. These maximum rent levels are stated in terms of a multiple of land revenue (tax) or an amount equivalent to a portion of the gross produce. The maximum rent levels are typically well below prevailing market rents and have proven difficult if not impossible to enforce in nearly all states where they exist. Perhaps most importantly, since most agricultural tenants in India remain concealed and thus with little or no tenure security, any effort by them to enforce legal 'maximum rent' provisions is likely to result in eviction.

Length of Term
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