Many Non-Resident Indians (NRIs) dream of owning a piece of land in India, whether for investment, farming, or simply staying connected to their roots. However, when it comes to agricultural land, India has strict rules. Let’s break them down in a simple way! ๐
๐ซ NRIs & Agricultural Land: What the Law Says
As per Foreign Exchange
Management Act (FEMA), 1999, NRIs cannot purchase:
✅ Agricultural land
✅ Farmhouses
✅ Plantations
These restrictions are in place to protect
farmlands and ensure they are used for their intended purpose – farming! ๐ฑ
๐ How Can NRIs Own Agricultural Land?
Even though direct purchase is not
allowed, there are some legal ways NRIs can acquire agricultural land:
1️⃣ Inheritance ๐ช – If an NRI inherits farmland from parents or grandparents,
they can legally own it.
2️⃣
Gift ๐ – Agricultural land can be gifted to an NRI by a resident
Indian who is a relative (as per the Income Tax Act).
3️⃣
Special Permissions ✅
– In rare cases, NRIs can apply for permission from the Reserve Bank of
India (RBI) or the state government to purchase agricultural land.
๐ก What About Selling Agricultural Land?
If an NRI already owns
agricultural land (through inheritance or gift), they can sell it, but only
to:
✔️ An Indian citizen
✔️ A resident Indian farmer
✔️ A resident Indian agriculturalist
NRIs cannot sell agricultural
land to another NRI or a foreign national. ๐ซ
๐ก Key Takeaways
✅ NRIs cannot directly buy agricultural land.
✅ They can inherit or receive it as a gift from a
relative.
✅ Selling such land is restricted to resident Indians
engaged in farming.
✅ Any exception requires special government approval.
๐ Why the Restriction?
The Indian government protects
agricultural land to ensure food security, prevent excessive
commercialization, and support local farmers. ๐ง๐พ
If you're an NRI looking for real
estate investment, you can buy:
๐ข Residential property
๐ฌ Commercial property
But when it comes to farmland, the
rules remain strict and clear! ๐ง
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