Hi, buying agricultural land in India. Each state has its own law. The state law will prevail. So better you can mention which state in India you need to purchase a Agricultural land.
US citizen buying agriculture land in India
I'm US Citizen now. I did a lot of googling and understand very well that I (as a foreigner) can not buy agriculture land in India. Now on my situation, my parents and a brother live in India, we have some agricultural land and houses there. There is a small piece of agricultural land(costs under 10 lacs & money will be sent from US) next to the existing one so my father is insisting on me buying it. I do want to buy as well, and can have my father to buy under his name. But the issue is that when my father will be gone in a few years then all property will get split between me & my brother. Is it OK to let my father buy this piece of land in his name and then make a "will" so it will come to my name so no split will happen on it? In fact, I had bought some land before when I was not US citizen. Please advise and share any best possible solution to it. Thanks a lot.
Asked 4 years ago in Property Law
Religion: Hindu
11 Answers
This is in state Uttar Pradesh.
Asked 4 years ago
Father can buy agricultural land in his name
2) he can bequeath land to you by will
3) mention reasons why he is bequeathing land to you
Father should execute registered will bequeathing land to you
it should be attested by 2 witnesses
Hi, there is no restriction in buying agricultural land in Uttar Pradesh.
1. As you have understood clearly that a US Citizen can't buy agricultural property in India.
2. However, an US Citizen can inherit agricultural property in India.
3. As you have rightly proposed, your father can buy the instant agricultural land in his name and execute a WILL bequeathing it in your favour, so that after your father's lifetime, you can inherit it.
Yes you need to make him buy the same in his name and make a registered will for the same
- As per FEMA21/2000 RBI rules , an NRI or PIO cannot acquire agricultural land /farm house/plantation property in India.
- If you will purchase an agriculture land in Maharashtra, then it will be a violation of FEMA laws , that can result in a penalty or even confutation of that property.
- Further, to purchase an agricultural property in India, an NRI has to take a prior approval from Reserve Bank of India, But you can acquire this property only by way of inheritance.
- Hence, you can purchase the land in your fathers name and take a registered gift deed from him
- If he will write a WILL in your name , then also there may be trouble after his demise on the ground of family fund etc.
You may arrange to purchase the property in your father's name first and then request him to write a Will in your favour (maybe after a month or so) bequeathing it to you solely. It is the best solution, in my view.
Dear Client,
An OCI or NRI cannot buy agricultural land in India. However, on the conversion of the same to residential land, he/she can buy the same. Yes, your father can buy the agricultural land and execute a gift deed in your favor as this would be self-acquired land so the same is possible.
Thank you
You can buy agricultural land on the name of your father but you cannot acquire it by a testamentary disposition, i.e., by a Will after your father's lifetime.
You may inherit the same as a rightful share if he is reported to have died intestate.
In that case your brother shall be entitled to an equal share at par with you.
Therefore better drop the idea of funding for the purchase of agricultural property owing t the reasons cited above.
There is no problem for the property that are lying on your name before you acquired foreign citizenship.
You can continue to enjoy the same as an absolute owner.
The law is common across the country.