Are you an NRI or OCI? Want to settle in India? Don't fall trap on Agents tricks for buying the Agriculture lands in India.

Agricultural land laws in India are regulated by each state. Many states have their own rules regarding the purchase of agricultural land by NRIs. Generally, these rules tend to be restrictive, with many states not allowing NRIs to purchase agricultural land at all. Most of the agents trick you with attractive offers and landscape and engage you in buying the land but, after some time, you may face state and union authorities show cause notices, acquisition etc.

Your purchase and sale deeds may put on-hold and subsequently cancellation, and seller might get the land again to their enjoyment. In this circumstances, you may not able to retrieve you money back and required a legal suit where you may questioned about the land laws. "ignorance of the law is no excuse" is a core principle of the modern legal system. This means that a person cannot claim they didn't know the law to avoid liability for their actions.

Reason:

o?? The primary reason for this restriction is to prevent the conversion of agricultural land into non-agricultural uses (like real estate development or commercial activities), which could negatively impact food production and the rural economy.

o?? The Indian government aims to protect agricultural land for cultivation purposes and prevent speculation or misuse of farmland by individuals or entities who are not actively involved in farming.

However, You may get the agriculture land by inheritance or gift or will your family member who is an Indian Citizen.

Non-Resident Indians (NRIs) are generally restricted from purchasing agricultural land in India due to legal and regulatory constraints. According to Indian law, particularly the Foreign Exchange Management Act (FEMA) and the Agricultural Land Laws and the Reserve Bank of India Regulations, NRIs are not allowed to buy agricultural land in India unless they fulfill certain conditions. However, this does not guarantee permission to buy agricultural land in all states, as agricultural land laws vary across India. Many states may have laws preventing even Indian citizens from buying agricultural land unless they meet specific requirements (e.g., having farming experience).

1.??? If the agricultural land is converted into non-agricultural (e.g., commercial or residential) land, the NRI may be able to purchase it, but this conversion must be approved by the state authorities.

2.??? In some cases, an NRI may be allowed to buy agricultural land if he having an Indian Citizenship and they intend to use it for agricultural purposes with all residency compliances.

3.??? Maharashtra and Punjab and Haryana generally prohibit NRIs from buying agricultural land unless it is for agricultural use and the NRI has a strong link to the land or the region.

4.??? Inheritance: An NRI can inherit agricultural land from a family member (such as a parent, grandparent, or relative) who is an Indian citizen. In this case, the NRI does not need to fulfill any additional requirements apart from the inheritance laws.

5.??? Kerala has some conditions under which NRIs can buy land, but this is typically related to residential land, not agricultural land. Agricultural land in Kerala is generally restricted for non-residents.

Conversion of agricultural land is subject to approval by the local development authority and may require the NRI to submit documents proving the intended use of the land. You have consult with lawyers before you commit anything on agriculture land because There are states permits the agriculture projects development with joint ventures including green farming, organic and eco system promotion etc.

For those interested, it is advisable to check with us about the specific laws of the state where they intend to purchase the land, as agricultural land laws vary significantly across India and We suitably advise in which state law, which projects suitable to you.

Article Written by

V.Ravikumar [Ph.D In Law]

International Expansion Expert & Corporate Lawyer.