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Business News/ Money / Personal Finance/  OCIs can transfer agricultural land by way of gift to an Indian citizen
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OCIs can transfer agricultural land by way of gift to an Indian citizen

An Overseas Citizen of India may transfer agricultural land by way of gift to a resident in India and Indian citizen

It is advisable to obtain the Reserve Bank of India’s approval before gifting the land (Mint)Premium
It is advisable to obtain the Reserve Bank of India’s approval before gifting the land (Mint)

We have the Overseas Citizenship of India (OCI) status. Our grandfather has gifted us agricultural land by way of a registered gift deed. How can we cancel the deed and give the land to our grandmother.

—U. Veluvolu

An Overseas Citizen of India may transfer agricultural land by way of gift to a resident in India and Indian citizen, under the Foreign Exchange and Management Act, 1999 (Fema) and its regulations. We are assuming you complied with Fema norms when the land was gifted to you.

It is advisable to obtain the Reserve Bank of India’s approval before gifting the land. Thereafter, a gift deed in your grandmother’s favour should be executed and registered with the appropriate sub-registrar of assurances.

What is the best recourse for a coparcener of a Hindu Undivided Family (HUF) who is not being given his rightful share of income by the karta in connivance with other coparceners.

—Name withheld on request

A coparcener acquires right in the HUF upon his birth and thus has an undivided interest in the property. A karta, as the head and custodian, can alienate the coparcenery property by sale or mortgage for legal necessity or the benefit of the estate. A karta is also not required to obtain the consent of coparceners for alienation and if alienation is for legal necessity, then it will bind other coparceners. However, all these acts should be done for bonafide purpose and not for selfish and vested interest.

We understand that in your case, the properties of the HUF are being used by karta along with other coparceners for their use. If you are deprived of your legitimate rights, then you can bring about a separation in the status of HUF by a clear declaration of your intention to separate yourself from the HUF. You, as a coparcener, may call upon other HUF members for its partition, which can happen either by a registered deed of a partition or by a decree of the court.

Aradhana Bhansali is partner, Rajani Associates. Queries at mintmoney@livemint.com

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Published: 14 Jul 2020, 10:30 PM IST
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