337. Building hospital on

agricultural land

Q: Dear Sir, i am an nri doctor. Now i am returning back to India to start a hospital business in andhra pradesh. i have registered a private limited company to run the hospital business. i am the majority investor in this company and the other partner is my nephew who is residing in India. his investment is very small. i came to know that as a individual nri , i am not allowed to buy agricultural land . My question is whether i am allowed to buy a agricultural land through the company that i have formed. Is it legal. After purchasing the land through the company i am planning to do the conversion of the land to commercial use and construct the hospital on the land. Please advise me on the legality of buying the land through the company. with regards, Dr. Srinivas A. You are correct, when you say that as an NRI you would not be allowed to buy agricultural land. You will also, not be able to buy agricultural land through the company that you form. Naturally, you don't want to construct a hospital on lands that may, in future, be deemed to have been illegally purchased. As per your current plan, if you approach the authorities for conversion of land after you purchase it, the questions would arise as to why, as an NRI, you purchased agricultural land. Your purchase may be deemed to be illegal. You need to plan your approach in a different manner. My suggestion would be, instead of purchasing agricultural land and then getting it converted to commercial use, you should approach the concerned authorities, clarify that your intention is to build a hospital and get land use converted before you purchase the property. Building a hospital is indeed a noble cause and the chances are you may be able to get the conversion approved. In such a case you may probe into the option of having a sale deed agreement prepared that clearly states that you would purchase the property subject to approval from the authorities.