Q743. Can NRI buy Agricultural land in Telangana, India

Question: Hi, I am Shekar Tatikonda, basically from Telangana state of India. I have moved to Malaysia along with my family on job purpose on 20th September 2014. My family moved back to India on 27th August 2015, since we blessed with a baby boy on 10th December 2015. My family is still in India. Now we are planning to buy agriculture land for Investment purpose with amt 40 lakh. Rs : 4 lakh is gifted by my uncle in form of gold armament. The rest is earned in Malaysia. Please advice on legal rules of Telangana. Whether I can purchase the agriculture land or not. Thanks, Shekar Tatikonda [March 12, 2016]

Answer: Although NRIs or Person of Indian Origin (PIO) are allowed to own both residential as well as commercial properties in India without any restriction to the number of properties they can own, they are not permitted to purchase any agricultural land, farm house and plantation property. The only way NRIs or Persons of Indian Origin can have ownership of agricultural land, farm house or plantation property is if they are inherited. Despite what some websites claim, NRIs and Persons of Indian Origin such as OCI holders etc. cannot acquire Agricultural land / plantation property or farm house in India by way of gift.

Buying agricultural land in Telangana

Indian residents buying agricultural land in Telangana should be aware that the state law prohibits purchase of some categories of land. There are also some areas of land that can only be purchased by Tribal people. Potential buyers of land in Telangana confirm whether the land which they are contemplating on buying does not fall under any of the prohibited categories.