PIO1 said:The indialiaison site then states "Investment in agricultural property, plantation and farmhouse is prohibited for all classes of persons resident outside India, be it NRIs/OCBs/ foreign citizens or other foreign entities." [So if a simple panjabi farmer goes to toronto for six months to be with his grandson, he automatically loses his farm??? Which law says this? Poor farmers of India will be up in arms! Nepal is looking like a safe haven!]
PIO1 - In your given example the Punjabi farmer does not become a 'person resident outside India' as per FEMA.
As per FEMA - Person Residing Outside India is defined as 'being a person who has gone out of India or who stays outside India for the purpose of employment or carrying on business or vocation outside India or any other circumstances which indicate his intention to stay outside India for an uncertain period'.
Now the farmer going out of India to visit his son etc still remains a person resident in India and therefore, no need to worry about any of the things above.
Remember definition of NRI is different under FEMA, 1999 (earstwhile FERA 1973) than Income Tax Act, 1961. And the definition of Resident / Non-resident under FEMA prevails in all cases except for the purpose of Income Tax. Income tax has another status called RNOR - Resident but not Ordinarily Resident (FEMA does not have such class).
One good link on all FEMA related matters is http://www.femaonline.com/index.htm
and specially section related to immoveable property is http://www.femaonline.com/fema/FAQ/acquisition_and_transfer_of_immovable_property.htm