Q567. Can NRI lease Agricultural

land in India

Question: Hi Is NRI allows to take the agriculture land for lease to grow tree. Thanks. Tenzin Answer: There are many legal restrictions when it comes to leasing agricultural land in India, this applies to not only NRIs but also to resident Indian citizens. The Government of India, in an effort to protect farmers from exploitation have made agricultural rules quite stringent. In some States of India, the leasing of agricultural land is completely banned. Going into details of this topic is beyond the scope of this article, briefly: • The State of Kerala* & J&K have banned leasing out agricultural land. • The State of Andhra Pradesh, Bihar, Karnataka, Madhya Pradesh, Chattisgarh, UP, Uttranchal, Himachal Pradesh and Orrisa allow leasing of agricultural land by only some specific categories such as defense personnel or widows. • In some states where leasing restrictions are not specifically banned, there are provisions where the tenant may acquire right to purchase the leased land within a set time period. All said and done, Non-Residents cannot lease agricultural land and if you are in the process of doing so, you would be well advised to seek legal guidance in India from a professional. Those interested on finding out more detailed information on this topic can look up the ‘Land Reform Acts’ of various State Governments of India for latest information as rules do change from time to time. [*Kerala land reforms Act Section 72 - 73 - 74]