Could a landowner in India lease their agricultural property with a condition allowing the tenant to convert it for commercial use and cover the conversion costs? Could the lease also include a clause where the landowner becomes a trustee of the tenant’s company, receiving regular payments like salary in addition to rent?

Under Indian law, a landowner can lease agricultural land for commercial use, but the lease must comply with state-specific regulations regarding land use conversion. Including a clause making the landowner a trustee of the tenant’s company and receiving payments beyond rent might be legally permissible, but it would be crucial to ensure compliance with tax and company law regulations, and the arrangement should be clearly defined in the lease agreement to avoid potential legal disputes.