agriculture land acquired by mortgage

D. Venugopal (Querist) 23 November 2009 This query is : Resolved
My son is an NRI and lent some money to a friend of mine against mortgagage of some agricultural land around Hyderabad. As my friend could ot repay the loan, he wants to hand over the agricultural land.
As per FEMA, an NRI can not purchase agricultureal land.
Can my son acquire this Land? If not, how can he implement the condition of mortgage that the land would be registered in his name in case of default of payment? Because of the subdued market situation, this land can not be sold immediately as there is no buyer.
Please advise.

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Khaleel Ahmed (Expert) 23 November 2009
You are advised hereby get registered the said land in your name.Later execute a gift deed in favor of your son.

adv. rajeev ( rajoo ) Online

(Expert) 23 November 2009
Khalees has given good suggestion I agree with him.

G V S Jagannadha Rao (Expert) 23 November 2009
IF holding of land by an NRI is a bar under FEMA, it can be held even by gift. If the funds (advanced) as loan were routed through an NRE account (as against NRO account or a simple savings bank account) of NRI, the purchase of agricultural property may be allowed. please check on that.

Raj Kumar Makkad (Expert) 23 November 2009
NRI can purchase the agricultural land in India.

niranjan (Expert) 24 November 2009
However I would like to add that please also verify the provisions of tenancy law because there may be provision that land cannot be transferred in any way to non agruiculturist.

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