Sunday, 16 March 2025

🌾 Can NRIs Buy Agricultural Land in India? Legal Restrictions Explained


 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! 👇


🚫 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! 🌱


🔄 How Can NRIs Own Agricultural Land?

Even though direct purchase is not allowed, there are some legal ways NRIs can acquire agricultural land:

1️ Inheritance 👪 – If an NRI inherits farmland from parents or grandparents, they can legally own it.
2️
Gift 🎁 – Agricultural land can be gifted to an NRI by a resident Indian who is a relative (as per the Income Tax Act).
3️
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.


🏡 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. 🚫


💡 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.


🌏 Why the Restriction?

The Indian government protects agricultural land to ensure food security, prevent excessive commercialization, and support local farmers. 🧑‍🌾

If you're an NRI looking for real estate investment, you can buy:
🏢 Residential property
🏬 Commercial property

But when it comes to farmland, the rules remain strict and clear! 🚧

 

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