Agricultural Land in Punjab: What NRIs Must Know Before Buying, Selling, or Managing It

A practical legal guide for NRIs explaining ownership rules, sale restrictions, and management of agricultural land in Punjab under Indian law.

PROPERTY LAWSNRI LEGALCIVIL LAWS

Advocate Harshit Sachar, District Courts Ludhiana

1/1/20262 min read

Agricultural Land in Punjab: What NRIs Must Know Before Buying, Selling, or Managing It
Agricultural Land in Punjab: What NRIs Must Know Before Buying, Selling, or Managing It

Introduction

Agricultural land in Punjab holds immense emotional and financial value for many Non-Resident Indians (NRIs). For several families, such land represents ancestral heritage, long-term security, or a potential investment. However, Indian law treats agricultural land differently from residential or commercial property, and NRIs must be especially cautious while dealing with such land in Punjab.

Lack of physical presence, outdated revenue records, and misuse by occupants or relatives often turn agricultural land into a source of prolonged disputes. This blog explains what NRIs are legally permitted to do with agricultural land in Punjab and what precautions are essential.

Can NRIs Own Agricultural Land in Punjab?

Under Indian law, NRIs are generally not permitted to purchase agricultural land in India. This restriction applies uniformly, including in Punjab.

However, NRIs can legally own agricultural land if it is acquired through:

  • Inheritance

  • Succession

  • Will

If agricultural land devolves upon an NRI through lawful inheritance, ownership is recognised.

Sale of Agricultural Land by NRIs in Punjab

NRIs who legally own agricultural land through inheritance are permitted to sell it, but only to:

  • A person resident in India

  • A person eligible to purchase agricultural land under state laws

Sale to another NRI or foreign national is generally not permitted.

Before selling, it is crucial to:

  • Verify land classification in revenue records

  • Check mutation and ownership entries

  • Ensure there are no pending disputes or encumbrances

Importance of Revenue Records in Punjab

Punjab follows a revenue-based land record system. For NRIs, maintaining correct entries is critical.

Key documents include:

  • Jamabandi

  • Girdawari

  • Mutation records

Incorrect or outdated records often result in:

  • Illegal possession

  • False ownership claims

  • Difficulty in sale or transfer

Regular verification of land records is essential, especially when living abroad.

Risks Faced by NRIs Owning Agricultural Land

NRIs commonly face:

  • Illegal possession by relatives or third parties

  • False claims based on long possession

  • Unauthorized leasing or cultivation

  • Forged sale deeds or agreements

Delay in addressing these issues often strengthens illegal occupants’ position.

Power of Attorney for Agricultural Land

NRIs often manage agricultural land through Power of Attorney (POA) holders. While legally permissible, POAs must be:

  • Carefully drafted

  • Limited in scope

  • Properly stamped and registered

Blind delegation of authority frequently results in misuse or unauthorized transfers.

Leasing and Cultivation Issues

Leasing agricultural land without proper documentation can be risky. Tenancy laws and long possession may complicate eviction if disputes arise. Written agreements and periodic supervision reduce such risks.

Inheritance and Succession Issues

Agricultural land often becomes the subject of family disputes after the owner’s death. Absence of a will leads to:

  • Multiple co-owners

  • Complicated partition

  • Lengthy litigation

NRIs owning agricultural land in Punjab should consider proper succession planning to avoid disputes among heirs.

Can Agricultural Land Be Converted?

Conversion of agricultural land for non-agricultural use is subject to:

  • State laws

  • Local authority approvals

NRIs should not assume automatic conversion rights and must seek legal verification before relying on future development potential.

Legal Remedies for Protection of Agricultural Land

Indian law provides remedies such as:

  • Civil suits for possession

  • Injunctions against illegal occupation

  • Revenue authority proceedings

  • Criminal action in cases of fraud or forgery

Timely legal action is the strongest protection.

Conclusion

Agricultural land in Punjab requires greater legal caution than urban property, especially for NRIs. Ownership rights exist, but purchase restrictions, revenue complexities, and local practices demand informed decision-making.

NRIs should remember that distance does not dilute ownership, but delay weakens protection. Regular record verification, cautious delegation of authority, and timely legal advice are essential to safeguard agricultural land in Punjab.