Restrictions on NRIs Purchasing Agricultural Land in Kerala – Laws & Process Explained
Wondering if NRIs can buy agricultural land in Kerala? Learn about the legal restrictions, exceptions, and the process of purchasing land for NRIs in simple terms.
Table of Contents
Kerala, known for its lush landscapes and fertile land, is a dream destination for many Non-Resident Indians (NRIs) who wish to invest in agricultural land. However, before making such an investment, it’s crucial to understand the legal framework surrounding land ownership in the state. Can NRIs
Buy agricultural land in Kerala?
In this blog, we’ll explore the restrictions, legalities, and the process that NRIs must follow to buy agricultural land in Kerala. We’ll also answer some frequently asked questions to guide you through the entire process.
Can NRIs Buy Agricultural Land in Kerala?
In simple terms, NRIs are not allowed to buy agricultural land in Kerala under normal circumstances. This is due to the Kerala Land Reforms Act, which places certain restrictions on non-residents purchasing agricultural land.
The primary goal of this law is to protect local farming communities and prevent outsiders from acquiring large amounts of agricultural land. That being said, there are exceptions to this rule under specific circumstances.
Key Restrictions for NRIs on Agricultural Land Purchases
1. NRIs Cannot Directly Buy Agricultural Land
As per the Kerala Land Reforms Act, agricultural land in Kerala can only be purchased by residents of the state. Since NRIs are not considered residents, they are generally prohibited from directly purchasing agricultural land.
2. Agricultural Land Must Be Used for Farming
Even if NRIs manage to acquire agricultural land under specific conditions, they are legally required to use the land for agricultural purposes. If they wish to develop the land for residential or commercial use, they would need to go through a complex land conversion process.
3. Limits on Land Ownership
There are also limits on the amount of agricultural land that an individual can own. NRIs are subject to these limits, which can vary depending on the land type and local government regulations. Typically, NRIs can only purchase small parcels of agricultural land.
Exceptions: When Can NRIs Buy Agricultural Land in Kerala?
While NRIs face restrictions on buying agricultural land, there are a few exceptions that allow them to invest in land. Let’s explore these in detail.
1. Inheritance of Agricultural Land
NRIs who inherit agricultural land from family members residing in Kerala can legally retain ownership of the land. Inheritance rights are not restricted, and NRIs can continue farming the land or even lease it out.
2. Land Conversion
If an NRI wishes to use agricultural land for non-agricultural purposes (e.g., constructing a house or setting up a business), they can apply for land conversion. This process involves submitting an application to the local authorities to change the land’s status from agricultural to non-agricultural. Once converted, the NRI may be allowed to purchase the land, but they must follow the legal procedures for conversion.
3. Legal Heir of a Farmer
An NRI who is the legal heir of a farmer in Kerala may be able to purchase and retain agricultural land. As a legal heir, the NRI may be exempt from certain restrictions, especially if the land is used for agricultural purposes.
Legal Process for NRIs to Buy Agricultural Land in Kerala
If an NRI is eligible to buy agricultural land, they need to follow a set process. Here’s a step-by-step breakdown of the process:
Step 1: Confirm Eligibility
NRIs must first confirm whether they qualify to buy agricultural land. This can include verifying if they are inheriting land or are legal heirs of farmers.
Step 2: Check Land Title and Documents
Before purchasing any land, NRIs should verify the land’s title and ensure that the documents are free from any legal disputes. It’s wise to consult a local property lawyer to avoid complications later.
Step 3: Apply for Land Conversion (If Required)
If the agricultural land is to be used for non-agricultural purposes, NRIs must apply for land conversion with the local authorities. This process can take several months, and the NRI must submit the required documents and pay conversion fees.
Step 4: Seek Government Approval
For certain land transactions, NRIs may require approval from the local or state government. This step ensures that the transaction complies with local laws and regulations.
Step 5: Sign the Sale Agreement
Once all the necessary approvals are obtained, the NRI can sign the sale agreement with the seller. This agreement will outline the terms, price, and conditions of the sale.
Step 6: Register the Land
The final step is to register the land with the local sub-registrar. Once registered, the NRI will officially become the legal owner of the agricultural land.
Challenges NRIs Face When Purchasing Agricultural Land in Kerala
While purchasing agricultural land in Kerala is possible for NRIs, there are a few challenges to consider:
1. Complex Legal Procedures
The laws governing land purchases in Kerala are complex, and NRIs must navigate various legal requirements to ensure compliance. It’s advisable to work with a local lawyer or property consultant to avoid errors.
2. Delays in Land Conversion
The process of converting agricultural land to non-agricultural land can be time-consuming. NRIs may experience delays in obtaining the necessary approvals from local authorities.
3. High Property Prices
Due to the high demand for agricultural land in Kerala, prices can be steep. This may make it difficult for NRIs to afford the land they wish to buy, especially in prime areas.
4. Limited Land Ownership
NRIs are typically allowed to purchase only a limited amount of agricultural land, which may restrict their investment options.
Final words
To summarize, while NRIs are generally prohibited from directly purchasing agricultural land in Kerala, there are exceptions. NRIs can buy agricultural land through inheritance, if they are legal heirs of farmers, or by following the legal process for land conversion.
It's essential for NRIs to understand the complexities involved and seek legal advice before attempting to purchase agricultural land in Kerala. With the right guidance and compliance with the local laws, NRIs can successfully invest in agricultural land in Kerala.
For further assistance, you can visit MaadiVeedu.com, where we provide expert guidance on property transactions.
Frequently Asked Questions (FAQ)
1: Can NRIs buy agricultural land in Kerala?
NRIs cannot directly purchase agricultural land in Kerala unless they are inheriting it or applying for land conversion.
2: What is the process for NRIs to buy agricultural land?
NRIs must confirm their eligibility, check the land title, apply for land conversion (if required), seek government approval, sign a sale agreement, and register the land.
3: What challenges do NRIs face when purchasing agricultural land in Kerala?
Challenges include complex legal procedures, delays in land conversion, high property prices, and limitations on land ownership.
Call to Action
Are you an NRI looking to purchase agricultural land in Kerala? Visit MaadiVeedu.com for expert advice and assistance on navigating the legal process. Our team is here to make your property investment journey hassle-free.
