Can NRI/USC/OCI invest in agricultural/ farmland /revenue land

[kovai23]

What is defined as Agricultural Land, that an NRI or OCI is not eligible to buy?

During my last trip to India I met with a lawyer to find out about it. He claimed that there is no zoning criteria here. As long as the land is not in an agricultural belt and someone is not pursuing agriculture actively on that land, it can be categorized as 'Non Agricultural Land'.

According to him, if it is barren land it can be bought by NRI/OCI. His argument is that the reason the clause about Agricultural land is part of the NRI/OCI rules about real estate to protect farmers from foreign conglomerates buying up agricultural land.

While is argument is reasonable, I am not sure if there is specific 'zoning' done in India. Is there specific zoning done which classifies land as 'agricultural' ?

[DosaiLvr]

AFAIK, in KA, any agricultural land (revenue land) has to be converted by the District Commissonor (aka DC conversion) into non-agricultural land prior to it being used for other purposes. If I'm not mistaken, only a current agricultralist-owner can apply for the DC conversion

(When the farmers pay revenue tax, relief is extended on the barren land. Many revenue land have pockets of barren land within them for which the farmer gets relief from the collector. Barren land need to be converted too?)

So, many non-agri RE developers get into an agreement w/ the farmer, make a GPA etc. and then the farmer applies for a DC conversion. Upon the approval, the title deeds are transferred into the name of the non-agri developer.

Recently the KA Gov had stopped DC conversions, to prevent farmers from being lured by big bucks developers into selling their lands at below mkt. prices.

BTW, I'm not a lawyer, an agriculturalist or a developer. My info could be incomplete and/or flawed.

[kovai23]

DL,

Thanks for the info.

I am not familiar with Indian laws pertaining to agriculture. Based on your post, it looks like each state might have its own definition as to what is agricultural land.

I was googling for it and came across this link:
http://www.arunachala-property.com/problems.htm

It says: "Agricultural land is defined as land with a Well on it or with a water pump installed".

[DosaiLvr]

Moderator note:

This thread has been created w/ 10 posts moved from Land available to build Cottages, hence comments that refer posts or posters by #s will be out of sync. However posts and its replies (the thread) can be constructed by context.

Thanks

***************

As a resident I have no problem in buying agri property. ( thanks to Bobus for clarifying that !)[/quote]

One other point to consider, apart from residency, is that one must have verifyable credentials showing that the person or his ancestors have held agricultural land in the past.

[Bobus]

#9:

That is not a FEMA requirement. It may be a requirement in some states, under state law, but as far as I know, there is no such requirement in TN.

[DosaiLvr]

#9:

That is not a FEMA requirement. It may be a requirement in some states, under state law, but as far as I know, there is no such requirement in TN.[/quote]

I hope you are right - it would make me a happy camper if TN would allow non-agriculturalists to hold revenue lands.

My recent findings indicate otherwise... I need to do some more research and will do so post my R2I.


http://www.r2iclubforums.com/clubvb/showpost.php?p=20255&postcount=63

http://www.r2iclubforums.com/clubvb/showpost.php?p=20458&postcount=69

[Bobus]

My recent findings indicate otherwise...

Please feel free to elaborate about those findings and sources thereof. The links that you posted to posts in other thread(s) refer to a Jain Farms, some land on the border of Karnataka and TN, to an assertion by Jain Farms representative that USC resident of India aint allowed to buy that land. Is the land in TN or Karnataka? Karnataka has a (stupid and vested interest driven, IMNHO, that may be ignored*) law that prevents "non-agriculturalists" from owning agri land, but to the best of my knowledge and belief, TN has not fallen prey to such stupidity or vested interests**.

* I dont want to engage in a debate on this issue in this thread, but am expressing my opinion nevertheless.

** The intention is not to start some Karnataka-TN war or assert that TN is superior to Karnataka - it is merely an observation and opinion about a difference between the two states on this issue.

[ARGS]

#14,

I have no idea what you are referring to. The link that I had posted, http://wikimapia.org/#y=11450531&x=76676631&z=18&l=0&m=h&v=2 from wikimap clearly indicates the area of the property which is well within the TN border and around 6 Kms. from the town center. I am not sure of the sources of your "recent findings" but I can certainly say that my property has got nothing to do with the "Jain Farms" that you are referring to.

I hope you are not trying to confuse other potential buyers who may be following this thread. Everyone is entitled to their own doubts and concerns which may be genuine and I take it as my responsibility to clear them to the best of my knowledge. But I hope the intentions are not maliciously formed to create an unnecessary rumor or debate.

-ARGS

[DoctorJ]

#14,

I have no idea what you are referring to. The link that I had posted, http://wikimapia.org/#y=11450531&x=76676631&z=18&l=0&m=h&v=2 from wikimap clearly indicates the area of the property which is well within the TN border and around 6 Kms. from the town center. I am not sure of the sources of your "recent findings" but I can certainly say that my property has got nothing to do with the "Jain Farms" that you are referring to.

I hope you are not trying to confuse other potential buyers who may be following this thread. Everyone is entitled to their own doubts and concerns which may be genuine and I take it as my responsibility to clear them to the best of my knowledge. But I hope the intentions are not maliciously formed to create an unnecessary rumor or debate.

-ARGS[/quote]
#14 Bobus is responding to #11 DosaiLvr...where both of them are trying to make all of us more knowledgable about FEMA requirement/s. I'm sure there is no attempt to confuse any potential customers of yours and the intentions are noble at best. Based on the track history of the members, I think I can vouch for either of them. Please revisit the said posts and hopefully your confusion will be cleared.
==============================================
If literate people get confused easily, one can only imagine the plight of illiterate and ignorant people. -DJ :cool:

[ARGS]

DoctorJ,

Thanks for clarfiying that for me.

And Bobus, I'm sorry for jumping the guns on that one. I had misunderstood your posting and hence the reply. Pls. disregard.

Thanks,
ARGS