I have executed a registered gift deed couple of months ago in favour of my cousin (my mother's elder sister's daughter) for transferring part of agriculture land which I got from my grandfather by way of registered gift deed. Recently I came across the news that an NRI cannot acquire agriculture land in India by way of sale deed or gift deed. Is this law still in force?
My cousin, with her family, is staying in USA for the past 10 years and her last trip to India is in 2009 for about 3 to 4 weeks during March & April. Also early this year they have got US green card. By this I am considering my cousin becomes an NRI under law.
Since we did not know the above law, we went ahead and registered the gift deed. In order to avoid hassles in future, I want to cancel the gift deed and I need your help on that.
Q-1) Since the gift deed is againt the law, as per below notification, is it void by its nature itself or do we need to get it cancelled through legal course?
https://www.rbi.org.in/scriptts/
3. The regulations under Notification No. FEMA 21/2000-RB dated May 3, 2000, as amended from time to time, permit a NRI or a PIO to acquire immovable property in India, other than agricultural land or, plantation property or farm house. Further, foreign companies who have been permitted to open a Branch or Project Office in India are also allowed to acquire any immovable property in India, which is necessary for or incidental to carrying on such activity. Such dispensation is however not available to entities which are permitted to open liaison offices in India.
Thanks in advance.
Venkat
Q-2) If we have to get it cancelled, what is procedure for the same?
Q-3) Do I need to get my cousin's consent for cancelling the gift deed? If you need to know, the agriculture land is self acquired property of my grandfather and he transferred to me through registered gift deed.
