Can a overseas citizen of Indian origin buy agricultural land/coffee estate in karnataka for setup of educational institution for commercial purpose.
i am planning to incorporate a company/business for this future school and wants to buy agricultural land ?
An OCI cannot buy agricultural land anywhere in India.
NRIs (Non Resident Indians), PIOs (Persons of Indian Origin), OCI holders (Overseas Citizens of India) or even Indian citizens with hard cash may be tempted to invest in lush farmlands or plantation properties in Karnataka, India.
Reason - the produce from agricultural land, or the rental income by leasing out such land to a farmer or income from house constructed on such a land, is totally tax free.
Such verdant lands are also exempted from wealth tax; a tax that is, by and large, levied on benefits that accrue from any owned property.
There are some stringent restrictions imposed upon by the central and the state governments on buyers locally and abroad, even on those of Indian origin.
No agricultural land can be legally purchased by foreigners in Karnataka. In fact this rule is uniformly applicable all over India. No Indian state permits foreign nationals to buy farmlands.
2. NRIs and PIOs also cannot buy agricultural land in Karnataka. Same rule applies all over India. RBI’s approval is mandatory and it will surely not be easily attainable.
Even if the apex Indian bank allows the same, it would largely depend on individual circumstances.