Hello Sir/Madam, It's been my dream for more than the last 10 years to buy agricultural land for farming. Currently my status is NRI. First of all, I'm not sure what is the definition of NRI since I have been living outside of India for 1 year now. I guess I won't be able to buy it on my name, so below are a few questions. 1. Can I buy the agricultural land in my real brother's name? He is an Indian resident and the money which I am going to use is my Indian savings amount only. 2. Will he be able to gift the land to me in future? My brother's status is farmer, but my status is non-farmer? 3. What is the duration he needs to hold the land and then will be able to transfer me as a gift? 4. Do you think we can prepare any MoU document between us? 5. How can we safeguard our relations and not get into a dispute because of this transaction?
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Don’t purchase land in brother name as there is no guarantee that he would be able to fit land to you
2) since you are NRI agricultural land cannot be gifted to you
3) MOU would not be enforceable
4) litigation in india is long drawn and expensive proposition and it takes years to be disposed of
1. Irrespective of being an NRI, you still remain an Indian Citizen and you are legally entitled to exercise all rights (which includes buying any immovable property) in your own name.
2. To avoid any futuristic legal or family disputes with close relations .... it is best not to purchase any property in name of relations. IF required you may coordinate with me.
Keep Smiling .... Hemant Agarwal
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- 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 India , 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,
- Further, being an NRI , you are only allowed to purchase residential or commercial property in India.
1. Yes , you can purchase in his name after investing your amount
2. Yes, legally he can transfer the said land to you by way of gift deed even you are not a farmer.
3. Not limited.
4. Yes, for removing any hurdle in funder.
5. You can enter into an agreement with him after mentioning that the amount is invested by you for purchasing the land , and further he is bound to transfer the said land to you .
1. Your brother, being an Indian, can buy agricultural land by using your savings in India.
2. Your brother can't legally gift the agricultural land to you, as you are an NRI.
3. Not applicable. Since agricultural land can't be gifted to an N.R.I.
4. An MOU, barring agricultural land, may be executed.
5. Let your brother execute an Indemnity Bond in your favour for the money you would have invested on him.
1. The property so purchased shall remain on your brother's name only.
2. He cannot even transfer the property to your name at a later stage by any mode so long you remain a NRI.
However there is no legal infirmity in purchasing the agricultural property by him on his name though you have funded for the purchase because in any case you cannot claim ownership of agricultural property being a NRI.
3. Read the above answer
4. Since you cannot acquire agricultural land as a NRI for any reason, no such MOU will come to your rescue either now or later so long you remain a NRI.
5. It is advisable that you better do not enter into this venture which is not feasible as per your desire or dreams and which will actually end up in the apprehended dispute alone, spoiling your cordial relationship
Upu can buy but it may attract benami transaction law in India
1. You may finance your brother for purchase of an agricultural property. It can be registered in his name.
2. and 3. It is better if he gifts it to you after you too become a resident.
4. Yes, by means of an agreement to be duly registered.
5. You may have recourse to the registered agreement, if necessary.
Thanks for all your advice. The land is in Maharashtra. As I mentioned earlier my brother is farmer and below are few additional queries. 1. What if I would buy on my mother names (she is non-farmer and with no income)? Is there any income proof needed for my mother? 2. I am on temporary visa and in some years will definitely back to India, in that case will I become eligible to transfer the land on my name by gift deed from mother? 3. What kind of disputes you are seeing with above mentioned solution? 4. All I need your expert advice on how can I make this deal happen legally? Then I want you to continue the documentation and support from you going forward.
1)
Earlier in the State of Maharashtra, a non-agriculturist could not acquire agricultural land without the prior approval of the Collector. On 1 January 2016, an amendment was made to the existing law to allow a non-agriculturist to acquire agricultural land subject to certain conditions
2) the following lands would be excluded from the purview of Section 63 of the MTAL:
Land situated within the limits of a Municipal Corporation; or
Land situated within the limits of a Municipal Council; or
Land situated within the jurisdiction of Special Planning Authority; or
Land situated within the jurisdiction of New Town Development Authority; or
Any land allocated for residential, commercial, industrial or any other non-agricultural use as proposed in the draft/final Regional plan or Town Planning Scheme prepared under the Maharashtra Regional and Town Planning Act, 1966.
In short, a non-agriculturist can now acquire agricultural land for non-agricultural purpose (residential/commercial/industrial), if such land falls under any of the five exceptions to Section 63 of the MTAL as mentioned above.
1. There's no necessity to produce income proof of your mother to buy this property.
2. If you are eligible at that time you can very well get it transferred to your name.
3. What kind of disputes are expecting out of the above points.
You can make your question more clear.
4. You are giving this question in general in this public forum instead of approaching a particular advocate personality.
You may contact the chosen advocate and proceed with your queries
1. When you buy the same in your mother's name ensure that your sources are known sources of funds.
2. It can be only transferred to you back through will if you are nri
3. She needs to execute a will in your favour for the said transfer
1. Farmer background is necessary
- For a non-agriculturist , her annual income should be less than 25 Lakh P.A .
2. Property can be gifted to an NRI as well.
3. Family dispute , if brother refuse to transfer the land
4. You can purchase in your name after taking permission from the RBI.
1. to4. In most of the states in India, agricultural land can not be acquired by non agriculturists. So, you can under no circumstances, can legally acquire agricultural land in India.
5. You can not enter in to any MOU with him by which you can legally acquire the title of the said agricultural land which will initially stand in his name.
1. to 3. You being a non agriculturist can not legally acquire title of agricultural land.
4. The said illegal act can not be made absolutely legal for which it might be prudent on your part to buy the land in the name of a farmer by advancing him the sale proceeds to be repaid to you with interest within next certain period and then keep deposit of the original title deed of the said land creating mortgage on the said land.
5. You can thereafter use the said land and after the specified period to return you the said money, can file a civil suit to claim the mortgaged land.