• Planning to Buy Agriculture land in MP

Hi Sir,
This is Rokhs, i am indian citigen but working in Singapore on Employement Pass, planning to buy agriculture land in Madhya  Pradesh or Rajasthan.
my queries are:
1) by google, i came ot know that NRI Can not buy agriculture land, just want to confirm that.
2) if i buy in my parents name, is it allowed? and is there maximum limit in MP/Rajasthan
3) my parents are basically from Jaipur, my father is retired pentioner and mother is housewife.
4) I will be transferring money from Singapore to buy land to MY NRE Account and from there to  my parents account, is it okay or shall i do some some other way.
3) Later i can inherit that property from my parents
4) plan is, me and my friend both are working here, buy 100 Acre and start farming, once income sustainable, we might leave job and do it full time and increase our landbank.
5) what is your best legal advise to own farming land to do future agriculture business.
Asked 2 years ago in Property Law from Asia/Pacific Region
Religion: Hindu
an NRI cannot purchase agricultural land 

2) you can acquire agricultural land by inheritance

3)your parents can purchase agricultural land 

4)you are at liberty to transfer money to your parents account 

5) as far as limit for purchase of land in MP / Rajasthan is concerned contact a local lawyer 

6) check whether title to land is clear and marketable . then only your parents should purchase agricultural land 
Ajay Sethi
Advocate, Mumbai
45573 Answers
2677 Consultations

5.0 on 5.0

1. NRIs cannot buy agricultural land in India without the permission of RBI, which is exceptionally given.
2.  Section 17 of the Rajasthan Imposition of Ceiling on Agricultural Holdings Act 1973, has been amended adding a sub-section taking away the ceiling on buying agricultural land from the ‘khatedars’ (small landowners/farmers).
3. You can inherit the land from your parents. 
4. The amount can be transferred to NRE account and then to parents account.
Ashish Davessar
Advocate, Jaipur
22977 Answers
634 Consultations

5.0 on 5.0

NRIs/foreign nationals of Indian origin can acquire agricultural land only by way of inheritance.

Many State governments in India now allow only farmers to purchase agricultural land. The purpose being to protect farmland. 

Non farmers are in the market to purchase agricultural land, normally with the idea of not farming, but with the intent of purchasing cheap land for commercial purposes. 

The government of India also exempts agricultural income from taxes in most cases. 

This allows those who own even a small piece of agricultural land, which may have no income, to claim income generated from other avenues as being agricultural income, to avoid taxes

Acquisition of immovable property in India by persons resident outside India (foreign national) is regulated in terms of section 6 (3) (i) of the Foreign Exchange Management Act (FEMA), 1999.  Under FEMA, residential status is determined by operation of law. The onus is on an individual to prove his / her residential status, if questioned by any authority.

In terms of the provisions of Section 6(5) of FEMA 1999, a person resident outside India can hold, own, transfer or invest in Indian currency, security or any immovable property situated in India if such currency, security or property was acquired, held or owned by such person when he was a resident in India or inherited from a person who was a resident in India.

The regulations under Notification No. FEMA 21/2000-RB dated May 3, 2000, as amended from time to time, permit a NRI or a PIO to acquire immovable property in India, other than agricultural land or, plantation property or farm house.

NRIs and PIOs can freely acquire immovable property by way of gift either from
i) a person resident in India; or 
ii) an NRI; or
iii) a PIO.
However, the property can only be commercial or residential in nature. Agricultural land / plantation property / farm house in India cannot be acquired by way of gift.
T Kalaiselvan
Advocate, Vellore
35750 Answers
388 Consultations

5.0 on 5.0

1. NRIs can very well  buy properties in India,

2. You can buy agricultural land in India in any state if there is no restriction in purchasing agricultural land by non agriculturist,

3. Since you are staying abroad and earning heavily from non agricultural  source, you won't be able to buy agricultural land in MP/Rajasthan,

4. The agricultural land can not be purchased in the name of your father if there is a restriction in the said states for selling agricultural land to non agriculturists as prevails in may Indian Sates like Karnataka, Chennai etc.  
Krishna Kishore Ganguly
Advocate, Kolkata
18510 Answers
448 Consultations

5.0 on 5.0

1) All over India, NRIs and PIOs can’t purchase agricultural land/plantation property/farm houses. They can, however, inherit agricultural lands.

2) In the event of your parent's  buying agricultural lands in Madhya Pradesh or Rajasthan, then can buy agricultural lands on their name. There are no restrictions for purchase of agricultural lands by indians in these states. The provisions of this section were amended in 2010 and people from other states can now purchase agricultural land here. 

3) However the buyer has to apply for conversion within a year from acquisition and commence the proposed non-agricultural use within three years from the date of conversion in Rajasthan.

4) Transferring money from Singapore to buy land - You can transfer money from your NRE account to your parent's account- No issues on this. 
5) Yes. You can inherit these properties later by a WILL. 
6) Farming in 100 acre land- Good idea. this trend is now picking up in India and we see lot of professionals returning to india to start agricultural operations/ Business. Also with many facilities such as Drip Irrigation, Logistics, Cold storage etc being aggressively promoted/ Improved, Farming in both traditional crops and non traditional crops are slowly turning in to cash positive situation. 
Wishing you good luck.
Rajgopalan Sripathi
Advocate, Hyderabad
1307 Answers
159 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer