In most of the cases, transfer of property through sale or gift or any related transaction is prohibited. Previously, section 42 of the Scheduled Caste and Secheduled Tribe Act provided some general restrictions on sale, gift and bequest of the interest of Scheduled Caste and Scheduled Tribe, in the whole or part of their holding. Though sec 122 of the Transfer of Property Act is applicable everywhere, certain restrictions are followed while transferring property by ST persons. But currently, the status regarding transfer of land and property varies across different states. In states such as Uttar Pradesh and Karnataka, acts have been enacted to prohibit any transaction of land or property by a SC ST person to people of other categories.
Section 157 A of the U.P. Zamindari Abolition and Land Reform Acts provide for restriction on transfer of land. This was further argued in a case Surajmal vs State Of U.P. And Others on 9 January, 2020 where it was observed that- “The restriction on a scheduled caste with regard to the transfer of land in favour of a person who does not belong to a scheduled caste under Section 157-AA is thus absolute and such transfer is not permissible in any contingency.” Similar provisions have been laid down in the Karnataka Scheduled Castes and Scheduled Tribes (Prohibition of Transfer of Certain Lands) Act, 1978
Reference: “Transfer of Property Act, 1882
Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act
U.P. Zamindari Abolition and Land Reform Acts
Karnataka Scheduled Castes and Scheduled Tribes (Prohibition of Transfer of Certain Lands) Act, 1978