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Ravi (Consultant)     24 July 2014

Nri can buy agricultural land in karntaka

I am a NRI from Agricultural family of Karnataka, we have Ancestor Agricultural land, now my brother want to buy land with my money(only half paid by me) , as per RBI, NRI can gift upto 2,50,000.00$ to close relative, and later he will transfer half of that land to my name once i am back to India.

Or i will give my FCNR FD to him and he will get loan on that FDs to buy land


is it Legal, Please let me know


 4 Replies

Rangee (Lawyer)     24 July 2014

If any agricultural land is existing in your brother name and your name you may buy  agricultural land in Karnataka with out any hurdles, as per Karnataka Land Revenue Act  and Rules. With regard to your investment it is different matter subject to NRI and FERA Rules. 



Ravi (Consultant)     24 July 2014

Thank you for the reply;

I have ancestor land in my name, but now i am NRI, so can brother or mother can buy land with my money ?

Ravi (Consultant)     24 July 2014

RBI i says this

Can an individual resident Indian borrow money from his close relatives outside India?

Yes, an individual resident Indian can borrow sum not exceeding USD 250,000 or its equivalent from his close relatives3 staying outside India, subject to the conditions that:

  1. the minimum maturity period of the loan is one year;
  2. the loan is free of interest; and
  3. the amount of loan is received by inward remittance in free foreign exchange through normal banking channels or by debit to the NRE/FCNR(B) account of the NRI.


can they use this money to buy land ?

Rangee (Lawyer)     24 July 2014

If you are citizen of India it is sufficient to buy property in India. Regarding your investment the above rule is applicable. 



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