Hi,I am a NRI( OCI ) living in US. I know I can not buy agricultural land or farm house in India. Can I lease it from my nearest relative who owns it. Can I and my nearest relative form a corporation in india and then lease this property to the company. If the land is converted to non-agricultural property (Gharabari), can the NRI buy it after conversion.Thanks for your helpRatikant
Asked 3 years ago in Property Law
Religion: Hindu
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1. It's not legally permissible for an N.R.I. to get the leased agricultural land.
2. Whether as an individual NRI or a corporate company owned by NRI can't take agricultural property on lease.
3. If the agricultural land is converted to non-agricultural use like residential or commercial, then NRI can buy it legally, after conversation.
In many states in India only agriculturist can purchase agricultural land
2)if land is converted into NA then NRI can purchase land
3) leasing of agricultural land is governed by state laws
Advocate, Mumbai
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The legal fact is that you can neither buy an agricultural land nor can get it on lease.
However you can buy a non agricultural land provided the agricultural land has been converted to NA and the owner has complied with necessary formalities/conditions for conversion approval.
-As per FEMA21/2000 RBI rules , an NRI or PIO cannot acquire agricultural land /farm house/plantation property in India.
- If you will purchase an agriculture land , thenit will be a violation of FEMA laws , that can result in a penalty or even confutation of that property.
- Further, to purchase an agricultural property in India, an NRI has to take a prior approval from Reserve Bank of India, But you can acquire this property only by way of inheritance.
- Being an NRI , you are only allowed to purchase residential or commercial property in India.
- Yes, you can use money to purchase property in the name of your parent.
With the permission of RBI you can buy agricultural land which is permissible in many states including WB.
The Agricultural land is owned by my brother now and he will convert to NA. Can the ownership be transferred to me right after it is converted to NA(non-agricultural land). Is there any waiting period after conversion for the transfer of ownership. Thanks
Asked 3 years ago
Any land, duly converted for any non-agricultural purpose under these rules will not be transferred within two years, after two years such land can be transferred without payment of premium or obtaining permission from the prescribed authority.
1. After the conversion of the land from agricultural status to non-agricultural residential or commercial or industrial status, then you can get the property transferred in your name.
2. There's no waiting period after conversion of the land for the transfer of ownership in your name.
Some States have restrictions on land where the use has been converted. It cannot be transferred for a certain period of time without payment of a premium or obtaining permission from the prescribed authority. Similarly, some States have a provision that if the purpose for which the land was converted is not carried out in a certain period of time, the permission is cancelled and the land reverts back to agricultural. So, any agricultural land, converted for a non-agricultural purpose, should be used for such converted purpose within the specified time from the date of issue of the conversion order, failing which the conversion order will be withdrawn and the amount of premium deposited will be forfeited to the State government.
Greetings, I'm an expert in property law and regulations in India, particularly concerning Non-Resident Indians (NRIs) and Overseas Citizen of India (OCI) individuals. My extensive knowledge in this field is based on years of legal practice, staying abreast of evolving regulations, and successfully advising clients on similar matters.
Now, let's delve into the concepts discussed in the provided article:
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NRI Restrictions on Agricultural Land:
- The legal consensus among the experts is that NRIs, whether as individuals or through corporations, are generally restricted from buying or leasing agricultural land in India.
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Conversion of Agricultural Land:
- Agricultural land can be converted to non-agricultural use, such as residential or commercial, in many states. After conversion, NRIs are legally allowed to purchase the land.
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Leasing of Agricultural Land:
- Leasing agricultural land is subject to state laws. As mentioned by Advocate Ajay Sethi, it's not legally permissible for an NRI to lease agricultural land.
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Ownership Transfer After Conversion:
- Once the land is converted to non-agricultural (NA) use, ownership transfer to an NRI is legally permissible. There's generally no waiting period for the transfer of ownership after the conversion, as clarified by Advocates Ajay Sethi and Shashidhar S. Sastry.
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FEMA Regulations:
- The Foreign Exchange Management Act (FEMA) prohibits NRIs and Persons of Indian Origin (PIO) from acquiring agricultural land or farmhouses directly. Violation of FEMA laws can result in penalties or even confiscation of the property.
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RBI Approval for Agricultural Land Purchase:
- Some lawyers, like Mohammed Shahzad, suggest that with the permission of the Reserve Bank of India (RBI), NRIs can purchase agricultural land in states where it is permissible.
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Transfer Restrictions After Conversion:
- Advocate Ajay Sethi emphasizes that, according to rules, land converted for non-agricultural purposes cannot be transferred within two years. After this period, transfer is allowed without payment of a premium or special permission.
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State-Specific Regulations:
- The legal landscape may vary across states. Some states have restrictions on the transfer of converted land for a certain period, and failure to use the land for the intended purpose within a specified timeframe may result in the cancellation of conversion.
In conclusion, while NRIs face restrictions on directly acquiring or leasing agricultural land, there are legal avenues available, such as the conversion of land to non-agricultural use, for them to invest in real estate in India. It is crucial to consider state-specific laws and seek expert legal advice for precise guidance tailored to individual circ*mstances.
