• NRE -Can I buy Agricultural land in Tamil Nadu

Dear Sir,
I am from Kerala and an NRE, I wish to buy agricultural land in Didigul. Are NRE' s allowed to buy said land in Tamil Nadu. If not, can I set up a company using  an Indian Resident (my brother) and buy the said plot in that company name? The land will be used for Animal husbandry (goat farm). Also can I build a small house in that plot for manager quarters? Kindly help. Thanks
Asked 1 month ago in Property Law from Hong Kong
Religion: Hindu
1) NRI cannot purchase agricultural land in Tamil nadu

2) In Tamil Nadu, there is no restriction for Purchase of any Agricultural land  by resident indian . Anyone can Purchase an Agricultural land.  The provision of Land Reforms Act states that a family with five members can maximum own 15 standard acres of agricultural land. Additional five acres is allowed for every member of the family, but all put together the maximum a family can own cannot exceed 30 standard acres. 

3)  Any private company looking to purchase large acres of agriculture land in the state of Tamil Nadu, 
must take permission from the state government under section 37(A) of the Tamil Nadu Land 
Reforms Act, 1961 before going ahead with the purchase.
Any such land acquired by a company cannot be transferred by the way of sale, mortgage, gift, or 
lease without the prior consent of the state government.
Purchase of agriculture land is subject to some rules such as “special government permission must 
be obtained to purchase wet lands or dry lands benefited from irrigation projects”.

Ajay Sethi
Advocate, Mumbai
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you can build small house on said land 

2) the company should be incorporated , to carry on the business of agriculture and to acquire by purchase, taking on lease or otherwise land suitable for cultivation and agricultural operations and to carry on other business to further the above objects of the company.

3) . Section 3, Clause (2) of Act LVIII of 1961 defines "agricultural company" as meaning any company formed for the purpose of carrying on any business that has for "its main object the acquisition of gain by the company" from agricultural land.
Ajay Sethi
Advocate, Mumbai
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you would need permission from state govt   for purchase of land by the company 

2) since only 5 acres of barren land is being purchased better purchase it in name of your brother

3) contact a local lawyer in TN 

Ajay Sethi
Advocate, Mumbai
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Hi 
1) In Accordance to Reserve Bank of India Guidelines Non Resident Indian's cannot buy agricultural land in India and this is applicable to the whole of India. 

2) However you can form a company to buy an Agricultural land in Tamil nadu and the ceiling limit is 15 standard acres in accordance to Tamil Nadu Land Reforms Act. However repatriation of dividends / profits from the company  to its Non Resident Directors  will be governed by RBI guidelines

3) Since the land being purchased is about 5 acres and is less than ceiling limit of 15 standard acres, You do not need any  permission under section 37-A of Tamil Nadu land reforms act to acquire land which is less than the ceiling limit

4) Construction of Managerial quarters-  For construction of managerial quarters in an agricultural land,  you should apply for conversion in the gram panchayat where you intend to purchase the land and get conversion(agricultural to residential)to the extent you intend to construct the house for your employee and obtain permissions for constructions and then construct. 

Hope this information is useful

Rajgopalan Sripathi
Advocate, Hyderabad
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NRIs cannot buy agriculture land anywhere in the country. They can only get it by inheritance.
If you propose to buy the agricultural property through your brother  then you can do it and also by forming a company with you both as partners by observing necessary rules in that regard. 
T Kalaiselvan
Advocate, Vellore
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The said company will have myself (NRE) AND LOCAL Indian (my brother) as partners

This can be done legally by observing or complying with necessary formalities
T Kalaiselvan
Advocate, Vellore
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 noted on item 1. & 2. As for item 3, for purchase by private company, the said land is less than  5 acres of barren land.  In that case does the state Govt. Sanctions/approvals still apply.

This would be a compliance of the necessary formalities in this regard
T Kalaiselvan
Advocate, Vellore
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128 Consultations
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