• Questions related to Agriculture Land and NALA conversion

1. Who is NRI
2. Can an NRI purchase Agricultural land in Telangana 
3. Can we build Farm House on Agriculture Land with Gardening, swimming pool which will be open for public on daily rental basis
4. If above answer is NO, than the land to be converted thru NALA 
5. Conversion to residential is needed or Commercial or Industrial? What is the process to do
6. Which are the advantages and disadvantages for agricultural and commercial 
7. How many days are needed for NALA conversion 
8. Is it possible to sell the land after NALA conversion if yes are there any limitations or rules to follow.
9. Is it possible to convert the small portion of the land to commercial where farm house will be constructed as most of the area will be used for garden, playing area and swimming pool
Asked 1 year ago in Property Law
Religion: Muslim

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4 Answers

1) NRI cannot purchase agricultural land in india 

 

2) if you cannot purchase agricultural land how can you build a farm house and construct a swimming pool 

 

3) land is to be converted into NA 

 

4):make an application to revenue authorities for conversion of agricultural land into NA 

 

5) local authorities can guide you as to time taken for conversion 

 

6) NA land can be sold to NRI 

Ajay Sethi
Advocate, Mumbai
99782 Answers
8145 Consultations

1. The term NRI can have different meanings depending on the context, such as for FEMA, income tax, or acquiring immovable property. For example, students who study abroad with the intention of staying for an extended period and spend more than 180 days abroad in the previous financial year are considered NRIs. However, people who stay abroad for business, medical treatment, or other reasons that don't indicate an intention to stay indefinitely are not considered NRIs.

2. No, NRIs cannot purchase agricultural land in India,

3. Farm house cannot be let out on rent which is a commercial activity.

4. yes, it can be converted to NA

5. It depends on what you apply for

6. You can decide

7. Time taken will depend on how you move the papers and the time taken by authorities concerned

8. The land converted to NA can be sold 

9. No

T Kalaiselvan
Advocate, Vellore
89984 Answers
2492 Consultations

1. Under the FEMA Act, NRI is a person who is residing outside India , and who is either a citizen of India or is a Person of Indian Origin.

2. As per FEMA21/2000 RBI rules , an NRI or PIO cannot purchase agricultural land /farm house/plantation property in India including Telangana.

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

- Further, an NRI is only allowed to purchase residential or commercial property in India.

3. No, 

4. Yes

5. Commercial 

6. Commercial land can be used for swimming pool and other business purposes

7. May take 3 months 

8. Yes

9. No.

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

Dear Client,

  1. A Non-Resident Indian (NRI) is an Indian citizen who resides outside India for reasons such as employment, business, or other circumstances that indicate an intention to stay abroad for an extended period. NRIs are generally defined under the Income Tax Act, 1961, based on their stay duration in India.
  2. No, under the current regulations, NRIs are not permitted to purchase agricultural land in Telangana, or in other states, unless they have specific permissions or exceptions under certain conditions. The general rule restricts NRIs from owning agricultural land in India.
  3. Building a farmhouse on agricultural land is subject to restrictions. Typically, agricultural land is meant for farming and cultivation, not for constructing commercial or residential buildings. Constructing a farmhouse with amenities like a swimming pool and opening it for public rental may violate agricultural land use regulations.
  4. Yes, if you intend to use the land for purposes other than agriculture, such as constructing a farmhouse with commercial elements, you will need to convert the land from agricultural to a non-agricultural (NALA) use. NALA stands for Non-Agricultural Land Acquisition, and this process is required to change the land use classification.
  5. For constructing a farmhouse intended for commercial use, such as renting out to the public, you would need to convert the land to a commercial use. The process involves, applying for conversion by providing supporting documents and obtaining approval.
  6. Agricultural lands are generally lower cost, have tax benefits, and no conversion is needed for farming activities. However, have limited resale value for non-farming purposes, and potential regulatory hurdles for land use changes. Whereas, Commercial lands have higher resale value, potential for income generation, and flexibility for various business uses but they also have Higher cost, increased regulatory scrutiny, and additional taxes as disadvantages.
  7. The time required for NALA conversion can vary depending on the state and specific circumstances. Generally, it can take several months to complete the conversion process, involving administrative review and approvals.
  8. Yes, it is possible to sell the land after NALA conversion. However, ensure that the conversion process is properly documented and approved by the authorities. You must follow all legal requirements, such as updating land records and complying with any specific state regulations regarding the sale of converted land.
  9. Yes, it is possible to convert a portion of the land to commercial use, provided you get the necessary approvals from local authorities. The conversion of a small portion to commercial use while keeping the rest as agricultural land is feasible, but it requires clear documentation and adherence to zoning regulations. Ensure you obtain specific permissions for the mixed-use of the land and comply with the local planning guidelines.

 

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

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