If you are holding NRE/NRO account you are deemed to be a NRI hence you may not become eligible for purchase of agricultural land in India
Purchase of agricultural land
Hello everyone. I am a Indian passport holder living in Pune, working in the merchant Navy holding a NRE/NRO account. I have also got a farmers certificate made for my name as it is required for an individual to purchase agriculture land in Maharashtra. My question is, whether I can purchase agriculture land using the funds from the NRE/NRO account.
Asked 7 months ago in Property Law
Religion: Other
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8 Answers
You cannot purchase agricultural land as you are NRi
Yes, you can purchase agricultural land in Maharashtra as an Indian citizen with a valid Farmer Certificate. Use funds from your NRO account, not NRE. NRE funds cannot be used for agricultural land purchases as per RBI rules.
Being NRI you can’t buy agricultural land in India only you can inherit or receive from gift through resident Indian. Special permission of rbi is required in some cases
- 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 Maharashtra, then it will be a violation of FEMA laws , that can result in a penalty or even confutation of that property.
- Futher, 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.
- The NRE/NRO account is for non resident Indian only
- Since, you have an NRE/NRO account , it means you come under the category of NRI
Any Indian passport holder with farmer certificate is entitled to purchase agricultural and in Maharashtra by all means.
SIR/MADAM,
It is suggested that you can very well purchase the land using the money from said account. Just keep in mind to pay the requsite charge, as applicable, if any for the same.
Dear Client,
As per the Foreign Exchange Management Act (FEMA), 1999, the NRIs are usually not allowed to buy agricultural land, plantation property, or farmhouses in India. RBI imposes this ban so that speculative purchases of agricultural land do not take place. Having only a farmer's certificate is not enough to be exempted from this limitation. Even with the certificate, being an NRI, you cannot buy agricultural land directly with money from your NRE/NRO accounts without RBI's prior permission.
Exceptions:
You can inherit agricultural land from a resident Indian relative.
You can accept agricultural land as a gift from a resident Indian relative.
In exceptional circumstances, you can get special permission from the RBI to buy agricultural land, but this is challenging and will be strictly scrutinized.
NRE/NRO account funds:
Even assuming you were entitled, the money for such acquisition needs to be compliant with FEMA regulations. Normally, NRI purchase of agricultural land is not permissible through NRE/NRO funds without RBI permission.
