Capital gain 54F

I was born and brought up in Cochin.  For job, I moved to Chennai.  In order to settle me down in Chennai, my mother (father died) sold house (the only property my family had) in Cochin.  I purchased flat in Chennai in joint name, i.e my and mother during 1990.  The balance mount (about 1/3) required to purchase flat in Chennai was managed by taking housing loan against my salary.   After few years of my marriage, my mother wished to move back to Cochin as it was the native place and she wanted to keep touch with roots.  Hence I purchased flat in Cochin in my wife’s name during year 2000.  Total money was funded by me.  My mother started staying in Cochin and also frequenting Chennai.

 During  2005, I purchased agricultural land in Chennai for sum of Rs 10 lacs.  This was in joint name, me and my wife.  Total money was funded by me.  It should be noted that although status of land is agricultural, but it is barren land.  No farming activities were carried out before purchase and I also did not perform any agricultural activity.  This land is not good for agricultural.  I applied to the concern authorities to convert the status of agricultural to non agricultural during 2005, immediately after purchase.  Due to the boom in IT the land price escalated to 70 lacs.  I sold this land during 2009.  At the time of transfer, the land was surrounded by housing societies, college infront of the land 400 flats complex was under construction and next area (about 50 acres) to my land was purchased by reputed developer.  Please note that at the time of transfer, I did not receive any land status upgrade, it was still under status of agricultural.

I immediately (within 2 months from transfer) booked another flat in Chennai for 100 lacs.  The total consideration 70 lacs were invested and 30 lacs is housing loan. As housing loan bank requires joint name, this new flat is on the name of me and my wife.  I claimed capital gain exemption of 60 lacs under section 54F.  Now I understand that person can not posses 2 residential houses at the date of transfer of land.  I can not sell current Chennai house as it is occupied by me.  My new flat will be ready during 2011.  I can not sell Cochin flat as my mother is staying there.  My questions are

1.      The Cochin flat is on my wife’s name.  Hence at the time of transfer of land, I was possessing only one residential house (note that 2/3 money for Cochin flat was financed by mother).  Am I correct?

2.      I understood that 2 residential houses condition is applicable within one city.  My family 2 houses are in two different cities.  Is this correct?

3.      I am not investor and actual user.  Once I get the possession of the new flat, I will sell current flat in Chennnai to clear of housing loan taken against the new flat.  In that case 2 residential house conditions under section 54F should not be applicable.  Correct?

4.        The status of land as agricultural is questionable.  How the land can be said as agricultural when it is surrounded by housing societies, IT offices and so on?

5.      I believe that tax wise I am safe and will not have any tax liabilities.  Corrct?

6.       If there are any tax implications, then how much and how it can be avoided.