Can NRI Sell Inherited Agricultural Land in India?
NRI (Non-Resident Indian) investors often have questions about the legalities and regulations surrounding the sale of inherited agricultural land in India. One common query is whether NRIs are allowed to sell inherited agricultural land in India. In this article, we will explore the legal aspects and the process involved in selling inherited agricultural land by NRIs.
Legal Status of NRI Selling Inherited Agricultural Land
Yes, NRIs can sell inherited agricultural land in India, but there are certain conditions and restrictions that must be adhered to. According to the Foreign Exchange Management Act (FEMA), NRIs are allowed to purchase agricultural land in India, but they are not permitted to sell it. However, when it comes to inherited agricultural land, the rules are a bit different.
Conditions for Selling Inherited Agricultural Land
1. Proof of Inheritance: The NRI must provide proper documentation to prove that the agricultural land was inherited from a relative. This may include death certificates, wills, or any other legal documents that establish the inheritance.
2. Residency Requirement: The NRI must have resided in India for a minimum of 182 days in the previous financial year. This condition ensures that the NRI has a genuine connection with the land and is not merely purchasing it for speculative purposes.
3. Non-Agricultural Use: The NRI must ensure that the agricultural land is not used for any non-agricultural purposes. If the land is being used for non-agricultural activities, the NRI must stop such activities before selling the land.
4. Reporting to RBI: The NRI must report the sale of the agricultural land to the Reserve Bank of India (RBI) within 90 days of the transaction. This is to ensure that the sale is compliant with FEMA regulations.
Process of Selling Inherited Agricultural Land
1. Valuation: The NRI should get the agricultural land valued by a registered valuer to determine its market value.
2. Legal Documentation: Ensure that all legal documents, such as the title deed, inheritance proof, and residency proof, are in order.
3. Advertising: Advertise the land for sale through various channels, including online platforms, newspapers, and local agents.
4. Negotiation and Sale: Once a buyer is found, negotiate the terms of the sale and execute the necessary legal documents.
5. Payment and RBI Reporting: Complete the transaction by receiving the payment and reporting the sale to the RBI within the stipulated time frame.
Conclusion
In conclusion, NRIs can sell inherited agricultural land in India, but they must adhere to the specific conditions and regulations outlined by the government. By ensuring proper documentation, following the residency requirements, and reporting the sale to the RBI, NRIs can successfully sell their inherited agricultural land while remaining compliant with the law.
