Q.944 OCI holder buying

agricultural land in India using

money earned in India

Question: Dear Sir, I am an NRI with an OCI card. In 1995 I received a sum of money from the sale of my mother's house, that I invested in Indian mutual finds. I never took the money out. Can I use the same to buy agricultural land even though I am an OCI? I heard this can be allowed if the money originated in India, and never left? The land I wish to purchase is in Tamil Nadu, and my dream (long term) is to return and do organic farming. Thank you kindly Paul Joseph Answer: Regardless of the source of money, the following cannot buy agricultural land in India: • NRI [citizen of Indian being a non-resident from India, such as living abroad for employment or business purposes but holding a Indian passport] • OCI holder whether living abroad or living in India • PIO [Foreign citizens who are of Indian origin] • Foreigners None of the categories mentioned above can purchase agricultural land in India. These are rules set by Government of India. Non-residents contemplating purchase of agricultural land any where in India are advised to check with the appropriate government authorities of the State where they intend to buy agricultural land to confirm legality. Do not be mislead by real estate agents or brokers that as NRI they can buy agricultural land. Persons who are resident outside India are also not allowed to make investments in India in any agricultural activity. NRI, PIO, OCI or Foreigners cannot invest in any company, firm or a proprietorship engaged in agricultural activities in India. As per provisions of Foreign Exchange Management Act, 1999 [FEMA] an Indian citizen or a foreign citizen of Indian origin residing outside India, can acquire any immovable property OTHER than agricultural land.

Buy Agricultural land in mother’s

name

If organic farming is indeed a dream of yours then perhaps you should look into the possibility of purchasing the land in your mother’s name [provide she is not also a non-resident]. NRIs/OCI/PIO/Foreigners can acquire agricultural land in India by way of inheritance.