• Buying Agricultural land/ farmhouse with money earned abroad

Dear Sir,
I am on overseas assignments since last three years and shall be back to India next year. I want to know:
1. Can my wife, who is working in M.P., purchase agricultural land or farm house in her name with my earnings, parked in Indian bank with her having POA to operate the account and
2. Can I purchase the same with my overseas earning, parked in Indian bank, after surrendering my NRI status.
I would be grateful for your advice please.
Regards,
Sanjay
Asked 4 years ago in Civil Law

2 answers received in 30 minutes.

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6 Answers

 

  1. She can certainly purchase in your name paying out of your account, there is not legal problem for that.
  2. Immovable property can also be purchased by you through SPA issued to your wife. The procedure is, draft a special power of attorney on Indian stamp paper of 100 rupees which  is available in all countries  or even on white paper giving SPA to any of you relatives/friend/wife to purchase the property.  Go to Indian consulate/high commissioner and get SPA attested which  the consulate official will readily do. Due to pandemic walk-ins are to Consulate are suspended, you can get the SPA attested online. Send the SPA to the person named, she will take the SPA to the District Registrar who will validate it by putting his seal and signature. Fee for validation of SPA is 1 % if it is given to blood relation if given to other person it is 2% of government valuation of the property. With validated SPA property can be purchased by you through wife.  

 

Ravi Shinde
Advocate, Hyderabad
5133 Answers
42 Consultations

If you are considered as a NRI then you are not eligible for buying agricultural land in India. 

However your wife can purchase the agricultural property on her name  using your funds which you may transfer it to her as gift.

 

How can you surrender your NRI status while you are living/residing in a foreign country for years together.

You may first return to India and become a resident Indian as per the prevailing rules and then you can buy the proposed agricultural land in your name.

T Kalaiselvan
Advocate, Vellore
90295 Answers
2513 Consultations

Your wife can purchase agricultural land in her own name with your earnings 

 

2) once you cease to be NRI you can purchase agricultural land in MP 

Ajay Sethi
Advocate, Mumbai
100092 Answers
8174 Consultations

- 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 in MP, 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 wife with your earnings.

- Further, when you will ceased to be an NRI , then you are free to purchase the agriculture land in MP.

Mohammed Shahzad
Advocate, Delhi
15881 Answers
244 Consultations

Dear sir,

1. Your wife can purchase the agricultural property on her name, using your earnings.

2.yes after you return to India and become Indian citizen, you can purchase the property by yourself.

Anik Miu
Advocate, Bangalore
11114 Answers
125 Consultations

1. If agricultural land can be purchased by a non-agriculturists in the state where you want to purchase the said land then she can purchase it. otherwise not.

 

2. On the same count, you can also purchase the same if a non-agriculturist is allowed to buy agricultural land in MP.

Krishna Kishore Ganguly
Advocate, Kolkata
27738 Answers
726 Consultations

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