What NRIs and OCIs can buy in Tamil Nadu under FEMA, how to complete a purchase remotely with a power of attorney, and why verified diligence matters more from abroad.
Under FEMA, Non-Resident Indians and Overseas Citizens of India may generally acquire residential and commercial immovable property in India. They may not purchase agricultural land, plantation property or farmhouses, though such property can be inherited. Payments must be made through normal banking channels using NRE, NRO or FCNR accounts, not foreign currency in cash.
These are general positions; the precise treatment of a specific purchase, including repatriation of sale proceeds, should be confirmed with your bank and a tax advisor.
Most NRIs complete a purchase without travelling by granting a power of attorney (PoA) to a trusted person in India to sign and register on their behalf. The PoA should be specific to the transaction, properly executed and, if signed abroad, apostilled or attested at the Indian consulate, then registered or adjudicated as required in Tamil Nadu.
A loosely drafted or general PoA is a common point of failure, so it is worth getting the wording and attestation right before relying on it.
When you cannot walk the site or visit the Sub-Registrar yourself, you are relying entirely on the records and the people acting for you. That raises the bar on verification: clean title, a 50-plus-year encumbrance read, patta-chitta-FMB agreement, approvals and the bona fides of the seller all need to be confirmed at source.
A verification-first approach, plus a sound PoA and counsel validation, is what lets an overseas buyer commit with the same confidence as someone on the ground.
Yes. By granting a properly executed, transaction-specific power of attorney to a trusted representative, an NRI can have the purchase signed and registered in India without travelling.
No. Under FEMA, NRIs and OCIs cannot purchase agricultural land, plantation property or farmhouses, though they may inherit such property. Residential and commercial property is generally permitted.
Through normal banking channels using NRE, NRO or FCNR accounts. Cash or unaccounted foreign currency is not permitted. Confirm repatriation and tax treatment with your bank and advisor.