No. The rules do not let an NRI buy agricultural land, a farmhouse, or plantation property in India through a direct purchase. Under Rule 24 of the FEMA (Non-Debt Instruments) Rules, 2019, an NRI or OCI may acquire immovable property outside these three categories, so what is barred is the direct purchase, not every way of holding land.
The rule sits in Chapter IX, Rules 24 to 33, of the NDI Rules, 2019. From 17 October 2019, the power to make these rules moved to the Central Government, and the RBI monitors transactions through Authorised Dealer banks. Where older guidance simply says “FEMA”, the precise bar an NRI runs into is Rule 24, and naming it matters when a bank or a sub-registrar asks for the basis.
Why can’t NRIs buy agricultural land in India
NRIs cannot buy agricultural land because Indian policy reserves farmland for resident cultivators and guards against speculative, non-cultivator holding. FEMA carries that policy into exchange-control law, and Rule 24 draws the line at agricultural land, farmhouses, and plantations.
The residual power to allow an exception has not vanished, it has narrowed. The RBI can consider a case-by-case approval under Section 6(3)(i) of FEMA, 1999 read with Rule 7 of the NDI Rules, and the current position is consolidated in the RBI Master Direction on Acquisition and Transfer of Immovable Property. For the deeper mechanics of how these rules operate, read the FEMA rules for NRI farmland, in detail.
What legal ways can an NRI own agricultural land in India?
An NRI can lawfully come to hold agricultural land in four ways: by inheriting it, by keeping land already owned before becoming an NRI, by returning to resident status, or, rarely, with specific RBI permission. Direct purchase is not one of them.
Inheritance
Inheritance is the clear, unambiguous route. An NRI may inherit agricultural land in India, including from a person who was a resident. For the succession and mutation steps, see how an NRI inherits agricultural land in India.
Gift
The gift route is contested and should be treated conservatively. Residential or commercial property may be gifted to an NRI, but agricultural land is widely read as excluded from the gift route. Treat inheritance, not gift, as the clean way in until a specific case is confirmed in writing.
Land owned before becoming an NRI
Agricultural land bought while the person was a resident can be retained after they become an NRI. Prior lawful ownership is not undone by a change in residential status.
Returning to resident status
Spending 182 days or more in a year in India shifts a person’s status to Resident Indian, which restores eligibility to buy agricultural land, subject to the relevant state law.
RBI special permission
In rare cases the RBI may grant case-by-case approval under Section 6(3)(i) with Rule 7. This is an exception, not a general route, and it is not something to assume in advance of an actual approval.
Do OCI and PIO cardholders face the same rule
Yes. OCI cardholders face the same bar as NRIs, because an OCI card is a lifetime visa, not Indian citizenship. The PIO card was merged into OCI in 2015, so the same restriction applies to former PIO holders.
The distinction people miss is between residence and citizenship. Holding an Indian passport as a resident is what allows agricultural-land purchase, and an OCI card, whatever convenience it carries, does not change residential status for this rule.
What happens if an NRI buys agricultural land anyway
A purchase in breach of FEMA is a contravention, not a clean title. In one RBI compounding case, an NRI who had bought agricultural land was directed to sell it within six months to a resident Indian and to compound the contravention. The RBI can require divestment, and property acquired in violation can be confiscated without compensation.
The practical lesson is that the transaction does not become safe simply because it completed at the sub-registrar’s office. For the penalty figures and the enforcement process in full, see the penalties for an NRI buying agricultural land.
Can an NRI who wants managed farmland do it legally
Direct purchase of agricultural land by an NRI is barred, so any lawful route runs through the mechanisms above, chiefly inheritance and pre-NRI ownership, rather than a straight buy. If you are an NRI who still wants managed farmland in India, the lawful path is set out separately.
Hasiru Farms works only within this legal position and does not offer a way around it. Rather than claim a shortcut, the honest step is to look at how Hasiru works with NRIs within the law, which explains the compliant options in detail.
Land is also a state subject, and the position can vary from one state to another. For a state-level view, see the Karnataka position for NRIs.
EVIDENCE: WHAT AN NRI CAN AND CANNOT DO
| Action | Permitted for an NRI? | Legal basis / note |
|---|---|---|
| Buy agricultural land | No | Barred by Rule 24, NDI Rules 2019 |
| Inherit agricultural land | Yes | The clear, permitted route |
| Receive agricultural land as a gift | Restricted / contested | Widely read as excluded from the gift route; treat inheritance as the clean route |
| Hold land owned before becoming an NRI | Yes | Pre-NRI ownership can be retained |
| Sell inherited agricultural land | Yes, to a resident Indian only | Transfer restricted to resident Indians |
| Get RBI special permission to buy | Possible, rare | Case-by-case under Section 6(3)(i) with Rule 7 |
| Buy non-agricultural or converted land | Yes | Rule 24 bars only agricultural land, farmhouses, plantations |
Frequently asked questions
Can an NRI sell agricultural land in India?
Yes, but only to a resident Indian. An NRI who holds agricultural land, for example through inheritance, can sell it, and the buyer must be a resident Indian citizen.
Can an NRI buy non-agricultural or converted land in India instead?
Yes. Rule 24 bars only agricultural land, farmhouses, and plantations. An NRI can buy residential, commercial, or converted non-agricultural land in India.
Who cannot buy agricultural land in India directly?
NRIs, OCI cardholders, and former PIO holders cannot directly buy agricultural land in India under FEMA. Resident Indians can, and an NRI who returns to resident status regains eligibility, subject to state law.
Does an NRI have to sell agricultural land they inherit?
No. Inherited agricultural land can be retained. Only land bought in breach of FEMA must be divested, typically by sale to a resident Indian within a set period.
Conclusion
The rules will not let an NRI buy agricultural land in India through a direct purchase, so the honest starting point is the law, not a promise of returns. Hasiru Farms has been operating since 2021, with 100+ acres delivered and 250+ families as owners. Every project goes through documented due diligence before a parcel is offered, covering parent-title checks, encumbrance and RTC verification, PTCL and Nil Tenancy checks, and zoning review.
If you are an NRI weighing managed farmland, begin with the lawful route rather than a workaround. Read how Hasiru works with NRIs within the law. For the full picture of NRI farmland ownership and how each route works, read the complete NRI farmland ownership guide.
