Q558. NRI purchased Farm Land in

India was unaware of rules . . .

Question: Hi, Being an NRI, I have purchased a farm land. Note that I was unaware of the rule that NRI can't buy farm land. Also, note that the land is already registered under my name. My questions are as follows: • Is there any issue in future for the land which I purchased as it is already registered under my name? • What steps can be taken by the govt. legally if it is discovered at any stage that I have purchased a farm land being an NRI? • Is there any problem if I transfer or sell the property to a resident indian citizen? I would appreciate if you can answer this query. Thanks & Regards, Amit Answer: Regarding your questions:As per Notification No. FEMA 21/2000-RB dated May 3, 2000, NRI or a PIO cannot acquire agricultural land or, plantation property or farm house in India. Purchase of any property in violation of FEMA laws can result in fines or even confiscation of such property. Courts do not accept Ignorance of the law as a defense. Even though property is registered in a persons name; The Enforcement Directorate (ED) can confiscate such property if it was acquired in violation of FEMA laws. Recently, many properties in Goa have been confiscated by the ED due to FEMA violations by such property owners. As long as no one finds out, you may be able to keep/sell/transfer the property. Normally I believe friends, relatives and even sometimes close family members or property brokers, are the ones who report such cases to the authorities out of spite or personal gain.