Pradeep Mishra Vs Special Director Directorate of Enforcement (Appellate Tribunal Under Safema At Delhi)
FEMA Tribunal Ruling on Residential Status and Purchase of Agricultural Land – Case Analysis
Introduction
The determination of “residential status” under the Foreign Exchange Management Act, 1999 (FEMA) often has significant implications on the permissibility of certain transactions in India, particularly the acquisition of immovable property. The case of Pradeep Mishra vs. Directorate of Enforcement (Appellate Tribunal under SAFEMA, Order dated 01.07.2025) highlights how the interpretation of Section 2(v)(i) of FEMA — and especially clause (B) — can materially affect the outcome of proceedings.
This case involved the purchase of agricultural land in the name of a resident spouse by an NRI who had returned to India permanently but had not completed 182 days of stay in the preceding financial year. The matter raises important questions on whether intention to settle should outweigh the numerical 182-day test.
Detailed Facts of the Case
Shri Pradeep Mishra, the appellant, had been employed in Saudi Arabia since 2000. After over a decade abroad, he returned to India in May 2012 with his family, having wound up his overseas employment and business activities.
Following his return, between August 2012 and January 2014, he purchased several properties in India. Among these was an agricultural land in his wife’s name in August 2012,
