432. How NRI - PIO - OCI can

do farming in India . . .

Questions: Hello: I have read with great interest your articles and answers to various questions about acquiring/purchasing Agricultural Land and/or Farm Land in India either by an NRI/PIO/OCI. It appears that none (NRI/PIO/OCI) are allowed to buy/purchase Agricultural Land and/or Farm Land in India. I am a Canadian Citizen of Indian origin (born, raised and educated in India) and have been living outside India for the past 45 years. My question is: Can a "Foreign Citizen of Indian Origin" buy Agricultural Land and/or Farm Land solely for the purpose of Farming? Your response would be much appreciated. Thanks Arthur Noronha Answer: The intent of articles written on this website are simply to highlight the law when it comes to purchase of agricultural land in India. This does not in any way mean that NRI/PIO/OCI are branded for life that they cannot purchase agricultural land in India. There may be many such people who have gone ahead and purchased agricultural land, whether they have done it legally, erroneously or have been mislead into such purchases is another question. Currently foreign nationals of Indian origin can acquire agricultural land only by way of inheritance.

PIO/OCI getting approval of

starting agricultural project in

India

While I do not in any way claim to be an expert in such matters, I would assume that OCIs who return to India, with farming in mind would have a good chance to get such projects approved by the government authorities, if their projects have merit, will provide employment and benefit the State, where the project is proposed to be setup. Many State governments in India now allow only farmers to purchase agricultural land. The purpose being to protect farmland. Non farmers are in the market to purchase agricultural land, normally with the idea of not farming, but with the intent of purchasing cheap land for commercial purposes. The government of India also exempts agricultural income from taxes in most cases. This allows those who own even a small piece of agricultural land, which may have no income, to claim income generated from other avenues as being agricultural income, to avoid taxes. I’m sure those with a genuine intentions of actually getting into the farming business, can find legal methods to go ahead. In cases where only farmers can buy agricultural land, the question here for many people would be, how does one become a framer if they do not already hold and cannot buy agricultural land?

How to become a farmer in India?

For a person who is considering starting a agricultural project in India currently there may be two routes of entry. 1. Approach the concerned State authorities for permission. This would be the ideal method to proceed for those who have a good project, approval may take some time but would be legal. 2. Find a farmer and buy land in farmers name. At a later stage, a farmer / agriculturist status can be requested from the collector of the location where the land is situated. I am not sure of the legality of such a method, however legal opinion in India should be sought by those considering this method.