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.

AI Summary

NRI Seeks to Sell Agricultural Land in India; Must Comply with Regulation 6 for Repatriation of Sale Proceeds. A Non-Resident Indian (NRI) purchased agricultural land in India without realizing that NRIs are prohibited from holding such property under the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000. The NRI now wishes to sell the land and transfer the proceeds abroad. An expert advised that the sale is permissible only to an Indian resident citizen and suggested approaching the Reserve Bank of India (RBI) for guidance due to non-compliance with initial regulations. Repatriation of the sale proceeds must follow Regulation 6 of the mentioned rules.