Agricultural Land purchased by NRI

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

can anyone please help me in sorting the following issue?

One of my client who is an Non Resident Indian has got a agriculture land in India. At the time of purchase also he was an NRI. He wasnt aware that NRI cant hold agriculture land in india. The land has also been registered in his name. Now, he being an NRI wants to sell this land purchase by him years ago and wants to take the consideration abroad. Will he face any problem? Will it be possible for him to take the total consideration abroad? If yes, what is the procedure to be followed.

Kindly guide me with the above.

[Surender Gupta]

Regulation 4 of FOREIGN EXCHANGE MANAGEMENT (ACQUISITION AND TRANSFER OF IMMOVABLE PROPERTY IN INDIA) REGULATIONS, 2000 prohibits acquisition of agriculture property by a person of Indian origin resident outside India.

Further, in the prescribed form, an intimation is required to be submitted within 90 days before RBI.

Further, Regular 4(e) permits sale of agriculture property to a person resident India, who is a citizen of India.

Since, there is not compliance of above first two conditions, you may approach RBI / ADs for further actions in order to sell that property now.

Repatriation of sale proceeds shall be in the manner provided under Regulation 6 of such rules.

AI Summary

Prohibition on NRI acquisition of agricultural land restricts sale and requires regulatory approval for repatriation of proceeds. Acquisition of agricultural land by a person of Indian origin resident outside India is prohibited; an intimation to the Reserve Bank of India is required within the prescribed period, sale is permitted only to a resident Indian citizen, and repatriation of sale proceeds must follow the regulations' repatriation provision and obtain necessary regulatory approvals.