Guides · 5 min read
Can an NRI buy or keep agricultural land in India?
FEMA rules on farmland, plantations and farmhouses for NRIs and OCIs — what you cannot buy, what you can inherit or receive as a gift, and how to sell it later.
Can an NRI buy agricultural land in Telangana or anywhere in India?
No. FEMA and the RBI's rules prohibit NRIs and OCIs from purchasing agricultural land, plantation property, or farmhouses in India — even where a state (like Telangana) lets any Indian citizen buy farmland. Sub-registrar offices around Hyderabad ask NRI buyers to sign a FEMA declaration that the property is not agricultural.
What can an NRI legally hold?
You may inherit agricultural land from a resident, receive it as a gift from a resident relative, and keep land you already owned before you became an NRI. There is no cap on residential or commercial property.
Can I sell inherited farmland?
Yes, but only to a resident Indian citizen — not to another NRI or OCI. Complete mutation in your name first (see the mutation guide) or the buyer's bank will stall. Sale proceeds go to your NRO account and follow the normal repatriation route.
What if I already bought farmland as an NRI?
The purchase can be treated as a FEMA contravention. The usual path is compounding with the RBI and, if required, transferring the land to a resident. Speak to a FEMA-aware CA or lawyer before doing anything else; we can coordinate the local records side.
General information only; rules vary by state and change often. Confirm with a lawyer or CA before acting.