Navigating NRI Ownership of Agricultural Land in India: What You Need to Know

As a non-resident Indian (NRI), purchasing and owning agricultural land can be a contentious and confusing issue. There are several questions that arise when it comes to owning agricultural land as an NRI, such as: Can an NRI buy agricultural land? Can an NRI inherit agricultural land? Can an NRI buy a farmhouse or construct a building on agricultural land? In this article, we will address these questions and clear up some of the confusion surrounding NRI ownership of agricultural land.

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Can an NRI buy agricultural land?

No, an NRI cannot buy agricultural land. However, if the NRI has purchased the agricultural land before he became an NRI, they can keep the property and do not have to sell it immediately upon becoming an NRI. Once an NRI becomes the owner of agricultural land, they cannot sell, gift, or transfer it to anyone else, regardless of whether that person is an Indian resident or an NRI.

Can an NRI inherit agricultural land?

Yes, an NRI can inherit agricultural land from a family member, and they can sell it if they wish. There is no prohibition on inheriting agricultural land for NRIs.

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Can an NRI buy a farmhouse or construct a building on agricultural land?

No, an NRI cannot buy agricultural land and construct a building on it. If the NRI wants to own a farmhouse, it must not be located on agricultural land. Farmhouses used for relaxation, tourism, or commercial purposes can be purchased by NRIs, as long as they are not located on agricultural land. If the NRI wishes to construct a building, it must be on non-agricultural land.

 

Can an NRI buy land and construct a building on it?

Yes, an NRI can purchase non-agricultural land and construct a building on it. However, they cannot purchase land for the sole purpose of speculation or appreciation. The Foreign Exchange Management Act (FEMA) prohibits this. If an NRI purchases a property only for gain and is not interested in constructing a building or any other infrastructure, it is considered speculative and prohibited under FEMA.

 

Conclusion

It is important to understand the restrictions and regulations surrounding NRI ownership of agricultural land. NRIs cannot purchase agricultural land, but they can inherit it. They can purchase a farmhouse as long as it is not located on agricultural land, and they can construct buildings on non-agricultural land. However, purchasing land for speculative or appreciation purposes is prohibited. By understanding these regulations, NRIs can make informed decisions when it comes to owning property in India.