After understanding the ground realities and reading the reports of the colonial officers of Punjab, the colonial government was ready to pass an Act to protect the farmers’ land from moneylenders. Finally, the colonial government passed the ‘Land Alienation Act’ of 1900 and notified on 22nd May 1901. This act classified the agricultural classes district wise. Non-agricultural community could not purchase land from agricultural community. In case of mortgage, the Act empowered the collector to check the mortgage deed and time period. If everything was found to be in order, the collector could give permission to transfer land from an agriculturist to non-agriculturist. So, it is very important to know about land alienation act in detail for understanding the agricultural act during British period.