.1.01. Purchase / Acquisition
A foreign citizen of Indian origin can freely acquire any immovable property in India other than agricultural land, plantation or farm-house property by way of purchase, provided the payment is made out of forex inward remittance or out of balance held in NRE, FCNR or NRO account.
.1.02. Acquisition by way of Gift
General permission is granted to acquire any immovable property other than agricultural land, plantation or farmhouse property by way of gift from a person / donor who is resident in India or an NRI who may be an Indian citizen or foreign citizen of Indian origin.
.1.03. Acquisition by way of inheritance :
Immovable property including agricultural land, plantation or farm-house property can be inherited from resident of India or a person resident outside India being an Indian citizen or foreign citizen of Indian origin provided such person had acquired said property in accordance with the provisions of Foreign Exchange Law in force at the time of acquisition. i.e. FERA, 1973 or FEMA 1999.
Hence Agricultural land, plantation or farmhouse property can be acquired by way of inheritance only
.2.01. Transfer / Sale
A foreign citizen of Indian origin can sell immovable property other than agricultural land, plantation or farmhouse property only to a person who is resident in India.
.2.02. Transfer of residential or commercial property by way of gift:
General permission is granted to gift residential or commercial property to a resident or an NRI who is an Indian citizen or foreign citizen of Indian origin.
.2.03 Transfer of agricultural land, plantation or farmhouse property by way of sale/ gift :
Agricultural land, plantation or farmhouse property can be sold or gifted to a person resident in India who is also an Indian citizen.
Mode of Payment
.1. The Payment for purchase of immovable properties is required to be made from NRI's bank account, being;
.01. Non Resident External Account (NRE);
.02. Foreign Currency Non Resident (B) Account (FCNR)(B),
.03. Non Resident Ordinary Account (NRO), or
.04. Foreign Exchange Inward Remittance from abroad.
.2. It is advisable to retain records of payment made i.e. banker’s certificate.
.3. All incidental expenses such as stamp duty, registration fees etc. should also be paid through bank only.
.4. From Feb.10,2006 ,payment for acquisition of immovable property shall be not be made by traveler's cheque or foreign currency notes or by other mode other than those specifically permitted by this clause ,
Although FEMA does not specify any regulations in this regard, property can be jointly held by an NRI with another NRI.
Like wise FEMA is also silent about acquisition of immovable property jointly with residents of India. Under the general laws an NRI can purchase properties with close relatives in India.