Restrictions on NRIs Purchasing Agricultural Land in Kerala – Laws & Process Explained

A Surprising Truth About Land in Kerala

Did you know that even if you are an NRI with strong roots in Kerala, you cannot simply walk into a registrar’s office and buy farmland there?

This comes as a surprise to many Non-Resident Indians who dream of returning to their hometown, buying a few acres, and building a farmhouse surrounded by coconut trees and paddy fields.

Kerala’s unique land laws protect agricultural land from speculative buying, especially by non-residents. So before you invest hard-earned money, it’s important to fully understand what the law allows and what it doesn’t.

Looking for genuine property options in Kerala? Verified listings online can help you compare choices before making any legal move.

In this blog, we’ll break down:

• Whether NRIs are allowed to directly purchase agricultural land in Kerala
• The restrictions and exceptions to this rule
• The step-by-step legal process NRIs must follow if eligible
• Common challenges and practical tips for avoiding legal troubles

By the end, you’ll know exactly what options are available — and just as importantly, what’s not.

Can NRIs Buy Agricultural Land in Kerala?

The short answer: No, NRIs cannot directly purchase agricultural land in Kerala.

This restriction comes from the Kerala Land Reforms Act, which was designed to:

• Protect farming communities from losing land to speculative buyers
• Prevent large-scale land ownership by outsiders
• Ensure agricultural land is actually used for farming and not hoarded for profit

But — and this is where most people get confused — there are exceptions where NRIs can still legally hold or acquire agricultural land.

Key Restrictions NRIs Must Know

No Direct Purchase of Agricultural Land

• NRIs, even if originally from Kerala, are not considered state residents in the legal sense.
• Hence, they cannot directly buy agricultural property.

Land Must Be Used Only for Farming

• Even in cases where NRIs inherit or hold farmland, that land must remain under agricultural use.
• If you want to build a house or start a business, you must apply for land conversion.

Limits on Land Ownership

• The state government imposes ceilings on how much agricultural land any individual can own.
• NRIs are subject to the same limits, typically allowing only small plots to be held.

Exceptions: When NRIs Can Own or Acquire Agricultural Land

1. Inheritance of Agricultural Land

If you inherit farmland from your parents or grandparents in Kerala, you can legally continue holding it.

Example: If your father owns 2 acres of paddy field in Thrissur and passes it on to you, you can retain it even as an NRI.

2. Land Conversion for Non-Agricultural Use

If you want to use agricultural land for residential or commercial purposes, you can file for land conversion with local authorities.

Example: Suppose you wish to build a house on inherited agricultural land in Kottayam. You can apply for conversion and, once approved, use it legally for your home construction.

For better clarity on land size and measurements, you can use an online land conversion unit tool to easily compare acres, cents, and square feet.

3. Legal Heir of a Farmer

If you are the legal heir of a farmer, you can also hold agricultural land.

This is treated differently from normal purchases since heirs continue the agricultural lineage.

The Legal Process NRIs Must Follow

If you qualify under inheritance, heirship, or conversion rights, here’s the step-by-step process:

Step 1: Confirm Eligibility

• Verify if you’re inheriting agricultural land or eligible as a legal heir.

Step 2: Due Diligence on Land Title

• Check for clear ownership, debts, or legal disputes.
• Hire a local lawyer or a property consultant — this step can save you major headaches later.

Step 3: Apply for Conversion (If Needed)

• File an application with village or district authorities.
• Provide documents, pay conversion fees, and wait for clearance (this often takes months).

Step 4: Obtain Government Approvals

• Some land transactions need state-level approval, especially for NRIs.

Step 5: Sign the Sale Agreement (If Applicable)

• Once approvals are received, enter into a legally valid agreement with the seller.

Step 6: Register the Land

• Final registration at the sub-registrar’s office makes you the legal owner.

Challenges NRIs Often Face

NRIs regularly report these issues:

• Complicated legal hurdles – Multiple approvals, forms, and unclear timelines
• Delays in land conversion – Converting farmland to residential plots can take months or even years
• High property prices – Kerala’s limited land supply keeps prices steep
• Ownership restrictions – You cannot purchase large tracts, limiting investment options

Read also:Do NRIs Pay Property Tax in India? 5 Facts You Must Know

Final Words – What NRIs Should Keep in Mind

To put it simply:

• Direct purchase of agricultural land by NRIs in Kerala is not allowed.
• Inheritance, heirship, and conversion are the only legitimate pathways.
• Always consult a Kerala-based property lawyer before making any move.

NRIs who understand and follow the process can legally own and retain agricultural property in Kerala, but rushing without legal guidance often leads to frustration.

For expert assistance on buying, selling, or converting land in Kerala, you can explore trusted real estate advisory platforms like MaadiVeedu.com and get more helpful property insights at blog.maadiveedu.com.

FAQs – Quick Answers

1. Can NRIs buy agricultural land in Kerala?

No, not directly. Only through inheritance, heirship, or conversion can they legally hold land.

2. What’s the process if an NRI wants to use land for a house/business?

They must apply for land conversion at the local authority level and wait for permission.

3. What are the key risks for NRIs in such transactions?

Lengthy paperwork, conversion delays, high land costs, and strict ownership limits.