• NRI buying or leasing farm house in India

Hi,

I am a NRI( OCI ) living in US. I know I can not buy agricultural land or farm house in India. Can I lease it from my nearest relative who owns it. Can I and my nearest relative form a corporation in india and then lease this property to the company. 

If the land is converted to non-agricultural property (Gharabari), can the NRI buy it after conversion.

Thanks for your help

Ratikant
Asked 12 days ago in Property Law
Religion: Hindu

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8 Answers

1. It's not legally permissible for an N.R.I. to get the leased agricultural land.

2.  Whether as an individual NRI or a corporate company owned by NRI can't take agricultural property on lease.

3.  If the agricultural land is converted to non-agricultural use like residential or commercial, then NRI can buy it legally, after conversation.

Shashidhar S. Sastry
Advocate, Bangalore
3251 Answers
180 Consultations

5.0 on 5.0

In many states in India only agriculturist can purchase agricultural land 

 

2)if land is converted into NA then NRI can purchase land 

 

3) leasing of agricultural land is governed by state laws 

Ajay Sethi
Advocate, Mumbai
79719 Answers
4806 Consultations

5.0 on 5.0

The legal fact is that you can neither buy an agricultural land nor can get it on lease.

However you can buy a non agricultural land provided the agricultural land has been converted to NA and the owner has complied with necessary formalities/conditions for conversion approval.

T Kalaiselvan
Advocate, Vellore
69750 Answers
951 Consultations

5.0 on 5.0

- As per FEMA21/2000 RBI rules , an NRI or PIO cannot acquire agricultural land /farm house/plantation property in India.

- If you will purchase an agriculture land , then it will be a violation of FEMA laws , that can result in a penalty or even confutation of that property.

- Further, to purchase an agricultural property in India, an NRI has to take a prior approval from Reserve Bank of India, But you can acquire this property only by way of inheritance.

- Being an NRI , you are only allowed to purchase residential or commercial property in India. 

- Yes, you can use money to purchase property in the name of your parent. 

Mohammed Shahzad
Advocate, Delhi
5666 Answers
55 Consultations

5.0 on 5.0

With the permission of RBI you can buy agricultural land which is permissible in many states including WB.

Devajyoti Barman
Advocate, Kolkata
21787 Answers
318 Consultations

5.0 on 5.0

Any land, duly converted for any non-agricultural purpose under these rules will not be transferred within two years, after two years such land can be transferred without payment of premium or obtaining permission from the prescribed authority.

Ajay Sethi
Advocate, Mumbai
79719 Answers
4806 Consultations

5.0 on 5.0

1. After the conversion of the land from agricultural status to non-agricultural residential or commercial or industrial status, then you can get the property transferred in your name.

2. There's no waiting period after conversion of the land for the transfer of ownership in your name.

Shashidhar S. Sastry
Advocate, Bangalore
3251 Answers
180 Consultations

5.0 on 5.0

Some States have restrictions on land where the use has been converted. It cannot be transferred for a certain period of time without payment of a premium or obtaining permission from the prescribed authority. Similarly, some States have a provision that if the purpose for which the land was converted is not carried out in a certain period of time, the permission is cancelled and the land reverts back to agricultural. So, any agricultural land, converted for a non-agricultural purpose, should be used for such converted purpose within the specified time from the date of issue of the conversion order, failing which the conversion order will be withdrawn and the amount of premium deposited will be forfeited to the State government.

T Kalaiselvan
Advocate, Vellore
69750 Answers
951 Consultations

5.0 on 5.0

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