No you need to seek special permission from RBI
Can an Indian registered NRI Trust/Charity buy Agricultural Land
I am a Canadian citizen and want to create a trust/Charity in Telangana area and buy 2 acres of Agricultural Land to set up an Office, My single residence( ~2000 sq. ft), a small temple and help the local villagers in may ways. My intention is to settle down there permanently in 2/3 years of me moving to India. I wonder if I am allowed to do that. Thanks a lot for your answers in advance.
Asked 3 years ago in Property Law
Religion: Hindu
7 Answers
Indian courts have held that a non resident cannot be a trustee of an Indian resident trust unless he is domiciled in India. The principle behind this is that the trustee at all times must be within the reach of Indian Courts in order to ensure the enforcement of the terms of the trust.
There are no restrictions on religious trusts acquiring agricultural land. However, a charitable trust can own up to 5 standard acres of agricultural land, while hospitals and educational institutions can own up to a certain amount of agricultural land as per their rules or regulations as per the law.
Agricultural land can be purchased after forming a trust
Trust can purchase agricultural land in India
Indian courts have held that a non resident cannot be a trustee of an Indian resident trust unless he is domiciled in India. The principle behind this is that the trustee at all times must be within the reach of Indian Courts in order to ensure the enforcement of the terms of the trust.
Yes, its possible but as a trustee you have to take few local members in the trust.
According to the Foreign Exchange Management Act (FEMA), non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) are allowed to purchase agricultural land in India, subject to certain conditions. As a Canadian citizen, you may be able to purchase agricultural land in Telangana by fulfilling the eligibility criteria under FEMA.
However, it is important to note that the purchase of agricultural land in India by non-residents is subject to state-level regulations, which may differ from one state to another. Therefore, I recommend that you consult a lawyer in India who is well-versed in land acquisition and state-level regulations to ensure that you are following the proper guidelines and procedures.
Additionally, setting up a trust or a charity in India requires compliance with various laws and regulations. The registration and compliance process can be complex, and it is recommended that you consult with an Indian lawyer or a consultant who has experience in this area.
Dear client,
As a Canadian citizen, you are allowed to create a trust or charity in India, but there are certain legal requirements that you need to follow.
Foreign contributions and donations to charitable organizations in India are regulated by the Foreign Contribution Regulation Act (FCRA). You will need to register your trust/charity with the Ministry of Home Affairs and obtain prior permission from the government before accepting any foreign donations.
In addition, there are restrictions on non-resident Indians (NRIs) and persons of Indian origin (PIOs) owning agricultural land in India. However, there are some exceptions for NRIs and PIOs who have acquired Indian citizenship through naturalization. You should consult with a lawyer in India who specializes in property law to understand the specific regulations and requirements in Telangana.
If you plan to settle down in India permanently, you may need to obtain a visa that allows you to live and work in India. You should consult with the Indian embassy or consulate in Canada for more information on the visa requirements.
Overall, creating a trust or charity in India and owning agricultural land can be a complex process, and it's important to consult with legal and financial experts to ensure that you comply with all the necessary regulations and requirements.
Foreigners are not allowed to buy agriculture land in India even if the said purchase is for creation of a charitable trust.
