Short answer: No, not without RBI permission. Under FEMA and the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, NRIs and OCI cardholders may buy any immovable property in India except agricultural land, plantation property or a farm house. They may inherit such land, may keep land they acquired while resident in India, and may sell or gift agricultural land only to a person resident in India.
Who the rules cover
An NRI is an Indian citizen resident outside India. An OCI is a person resident outside India registered as an Overseas Citizen of India cardholder under Section 7A of the Citizenship Act, 1955. Both are treated alike for property under the RBI’s Master Direction on Acquisition and Transfer of Immovable Property under FEMA.
What NRIs and OCIs can and cannot acquire
An NRI or OCI can buy any immovable property in India other than agricultural land, plantation property or a farm house. Payment must come through banking channels, by inward remittance or from an NRE, FCNR(B) or NRO account, and not by traveller’s cheques or foreign currency notes. Residential and commercial property can also be received as a gift from a resident, or from an NRI or OCI who is a relative.
Agricultural land, plantation property and farm houses are outside this general permission. Any acquisition not covered by the Rules needs prior RBI approval. Citizens of certain countries, including Pakistan, Bangladesh, Sri Lanka, Afghanistan, China and Iran, need RBI permission to acquire or transfer any immovable property, except short leases; this restriction does not apply to OCIs.
Inherited land and land bought while resident
Inheritance is treated differently from purchase. An NRI or OCI may inherit immovable property from a person resident in India, and from a non-resident who acquired it lawfully. Section 6(5) of FEMA also allows a person resident outside India to hold, own and transfer immovable property acquired while he was resident in India, or inherited from a resident. So agricultural land bought before moving abroad does not have to be sold on becoming an NRI.
When it comes to transfer, the RBI’s FAQs record that agricultural land, plantation property and farm houses can be sold or gifted by an NRI or OCI only to a person resident in India.
Repatriation of sale proceeds
For property other than agricultural land, plantations and farm houses, an Authorised Dealer bank may allow repatriation of sale proceeds if the property was acquired lawfully, the price was paid in foreign exchange through banking channels or from NRE or FCNR(B) accounts, and, for residential property, for not more than two properties. Separately, the Master Direction on Remittance of Assets allows NRIs to remit up to USD 1 million per financial year from NRO balances, sale proceeds of assets and assets acquired by inheritance, subject to documents and taxes.
The RBI released draft Foreign Exchange Management (Foreign Investment) Rules, 2026 on 21 July 2026 to replace the 2019 Rules for foreign investment. Until new rules are notified, the 2019 Rules and the current Master Directions apply. State land laws on agricultural land also apply in addition to FEMA.
Related questions
Can an NRI inherit agricultural land in India?
Yes. FEMA permits an NRI or OCI to acquire immovable property by inheritance from a person resident in India, and the restriction on agricultural land applies to purchase and gifts, not to inheritance. State revenue laws on recording succession must also be followed.
Can I sell inherited agricultural land and send the money abroad?
The land can be sold only to a person resident in India. Remittance of the proceeds is possible through the Remittance of Assets route, within USD 1 million per financial year from NRO balances and inherited assets, subject to taxes and the bank’s documentation.
Can an OCI buy a farm house?
No. Farm houses are excluded from the general permission for NRIs and OCIs, along with agricultural land and plantation property. Acquisition would need prior RBI approval.
Can I gift my agricultural land to a cousin abroad?
No. Agricultural land, plantation property and farm houses held by an NRI or OCI can be gifted only to a person resident in India.
Practical points
- Check your residential status under FEMA before any land transaction.
- Keep the chain of title and inheritance documents for land held in India.
- Route all payments through banking channels and NRE, FCNR(B) or NRO accounts.
- Confirm the repatriation route with your bank before signing a sale deed.
Sources: RBI Master Direction on Immovable Property; RBI FAQs on Purchase of Immovable Property; RBI Master Direction on Remittance of Assets; FEMA, 1999 (Indian Kanoon).
For a confidential discussion on FEMA matters, see FEMA and Cross-Border Matters.
General legal information only; not legal advice or solicitation.
