Continuing Our Series-Expert Tips To Property Rights Of NRI And PIO.
We Will Today Find Out-Can An NRI Buy Agricultural Land In India?
An NRI is an Indian citizen for almost all practical reasons, although he is not residing in India owing to his occupation, business or job requirements.
Therefore practically he doesn’t still lose his status as a citizen of India and can certainly buy or sell property just like a resident Indian would do.
But Investments in agricultural property, plantation and farmhouse are prohibited for all classes of persons resident outside India, be it NRIs/OCBs/foreign citizens or other foreign entities.
IS THIS BAR ONLY FOR NRIs?
Some State governments in India have rules that allow only farmers to buy agricultural land in their State and this restricts even Indian citizens from buying agricultural land.
Since general permission is not available to NRI/PIO to acquire agricultural land/ plantation property/farm house in India, such proposals will require specific approval of Reserve Bank and the proposals are considered in consultation with the Government of India.
APPROVAL AND PENALTIES
Approval is required from the Reserve bank of India which one can assume is not easily available and this would depend on individual circumstances.
If an NRI purchased land without the permission of RBI, then he is bound to pay penalty under section 13 of FEMA act.
Supreme Court of India
A-1/121 Janakpuri, New Delhi.
DISCLAIMER: Through this article, we wish to help those who are in genuine need of help and are willing to understand the law. This is not a solicitation, advertisement or a substitute of professional legal advice. It does not create any client-attorney relationship.