• Agricultural land

Hi, I am an overseas citizen of India(OCI). I want to buy some land in Rajasthan which is agricultural. 
As an OCI, I am not allowed to purchase agricultural land. What options do I have?
A limited company route possible?
My parents live in Rajasthan and all my other details are Rajasthan based like aadhar card and so on.
I want this land to use it as a 
1. school & sports academy
2. little horticulture like poly houses and so on. 
Also, if the limited company route possible, then can or will I get subsidy for these poly houses?
Regards
VJ
Asked 7 years ago in Property Law
Religion: Hindu

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4 Answers

It is better you purchase agricultural land in name of your parents

2) on your parents demise you can inherit agricultural land

3) if you want to purchase agricultural land for promotion of sports then apply to state govt for permission to purchase land for sports academy

4) Section 17 of the Rajasthan Imposition of Ceiling on Agricultural Holdings Act 1973, has been amended adding a sub-section taking away the ceiling on buying agricultural land from the ‘khatedars’ (small landowners/farmers).

5) company can purchase land in Rajasthan

Ajay Sethi
Advocate, Mumbai
95221 Answers
7612 Consultations

5.0 on 5.0

Company can purchase agricultural land in Rajasthan . However as far as subsidy is concerned you better approach state govt in this regard

s a general rule, under the extant foreign exchange norms, agricultural land, plantation property or a farm house in India is not permitted to be acquired by a non resident, even if such a non resident is an Indian citizen or a person of Indian origin.

The above restriction may not apply to the acquisition of agricultural land by an Indian company, which has foreign investment where the acquisition of the agricultural land by the Indian company is for undertaking an activity which is consistent with the FDI Policy.

Ajay Sethi
Advocate, Mumbai
95221 Answers
7612 Consultations

5.0 on 5.0

As an OCI you may not be able to buy agricultural land not only in ?Rajasthan but in any part of the country.

However to your question to buy the agricultural land as a company, here is the news favoring you:

Rajasthan has amended its 37-year-old land ceiling Act to facilitate the direct purchase of agricultural land by investors. Section 17 of the Rajasthan Imposition of Ceiling on Agricultural Holdings Act 1973, has been amended adding a sub-section taking away the ceiling that existed on buying agricultural land from the ‘khatedars'.

The provision in the Section 17 of the 1973 Act prohibited even companies from acquiring agricultural land beyond prescribed ceilings. This provision proved a major impediment to those who wanted to set up various types of projects after purchasing agricultural land in excess of the ceiling limits and then getting that land converted for the proposed non-agricultural purpose.

Those who acquire land under the provisions of the new law will have to apply for conversion within a year of acquisition and commence the proposed non-agricultural use within a period of three years from the date of conversion.

T Kalaiselvan
Advocate, Vellore
85420 Answers
2239 Consultations

5.0 on 5.0

When you say "company can purchase land" - can i assume it is agricultural land even if I as an OCI holder is the director and shareholder of the company.

and if i were to purchase this agricultural land in company for horticultre / poly house - will I get subsidy for these from the govt through the limited company?

It is pertinent that one director of the company should be from Rajasthan.

The benefits and subsidies from the government side would be available after conversion of the agricultural land as per prevailing law.

T Kalaiselvan
Advocate, Vellore
85420 Answers
2239 Consultations

5.0 on 5.0

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