A NRI cannot buy an agricultural land, plantation property or farmland if the acquisition is by an NRI through a sale-purchase or a gift. This restriction will not prevent an NRI from inheriting agricultural land, plantation property or farmland; however, there are certain restrictions imposed on an NRI with respect to dealing with such type of property once inherited.
NRIs who have acquired foreign citizenship, are sometimes mislead into believing that they cannot continue to hold agricultural land as foreigners cannot hold agricultural land in India. But this is not all encompassing, because Indian NRI’s can continue to hold agricultural land or any other property they own in India provided they had acquired them legally before accepting foreign citizenship. NRIs and Foreign Citizens of Indian Origin cannot acquire agricultural land, even by way of gift. However they can acquire agricultural land by way of inheritance and an agricultural property or land thus acquired can only be sold to a resident in India and not to an NRI.