Can NRIs buy agricultural land in India?

Answer

A: No, NRIs cannot purchase agricultural land or farmhouse in India unless they are inherited..

Answer

A:

No, Non-Resident Indians (NRIs) are generally not allowed to buy agricultural land, plantation property, or farmhouse property in India. The acquisition of agricultural land by NRIs is governed by the Foreign Exchange Management Act (FEMA), 1999 and the related regulations issued by the Reserve Bank of India (RBI).

Key Points Regarding NRI Restrictions on Agricultural Land:

1. Restrictions Under FEMA:

   • FEMA and RBI regulations specifically prohibit NRIs and Persons of Indian Origin (PIOs) from purchasing any agricultural land, farmhouse, or plantation property in India. These restrictions are imposed to prevent the misuse of foreign funds in acquiring such properties, which are primarily intended for agricultural purposes.
   • NRIs can, however, inherit agricultural land from an Indian resident. In such cases, the NRI can hold the inherited property, but selling the land is subject to certain conditions.

2. What NRIs Can Purchase:

   • NRIs are allowed to purchase residential and commercial properties in India without any specific permission from the RBI. There is no restriction on the number of residential or commercial properties that an NRI can buy in India.

3. Seeking Permission:

   • If an NRI wishes to purchase agricultural land, they would need to seek specific permission from the RBI, which is rarely granted. Permission is generally considered only in exceptional circumstances and often not for investment purposes.

4. Inheritance:

   • While NRIs cannot buy agricultural land, they can inherit it from a resident Indian. If an NRI inherits such land, they are permitted to retain it or sell it, provided the sale complies with FEMA regulations.

5. Joint Ownership:

   • An NRI cannot become a joint owner of agricultural land in India if the property is not inherited. Even if the co-owner is an Indian citizen, the NRI cannot buy the land.

Conclusion:

NRIs are restricted from buying agricultural land in India under FEMA and RBI regulations. They are, however, allowed to inherit such properties or invest in residential or commercial real estate.

For more specific advice, it's recommended to consult a legal expert who specializes in property law or NRI regulations in India.