FEMA compliance, permissible categories, repatriation rules, and the role of a local attorney. A structured guide for non-resident investors.
Non-resident buyers face the same title risks as everyone else, plus a regulatory layer that determines whether the purchase is permissible at all.
What you may and may not buy
Under FEMA, a non-resident Indian or person of Indian origin may acquire residential and commercial immovable property in India without prior approval. Agricultural land, plantation property and farmhouses may not be purchased. They can only be acquired by inheritance.
This single restriction disqualifies a large share of what is marketed to overseas buyers as an investment opportunity in Telangana, because a great deal of the available land is classified agricultural regardless of what is planned for it.
Paying for it
- Funds must move through normal banking channels, or from an NRE, NRO or FCNR account.
- Traveller's cheques and foreign currency notes are not permissible.
Getting the money out again
Sale proceeds from residential property are repatriable, subject to limits: the amount repatriated cannot exceed the foreign exchange brought in for the purchase, and the concession applies to no more than two residential properties.
Signing from abroad
Most non-resident buyers execute a Power of Attorney in favour of someone in India to handle registration. It must be executed before the Indian consulate in your country of residence, or notarised locally and apostilled, and then registered in India. A POA that has not been properly attested will be refused at the sub-registrar's office.
