NRI Buying Property in Delhi NCR: The Legal Checklist

NRIs are among India's largest property investors — and among the most vulnerable to property fraud, title disputes, and regulatory violations. The combination of geographical distance, trust in local intermediaries, and complexity of Indian property law creates significant risk. **What NRIs Can Buy Under FEMA** FEMA regulates NRI investment in Indian property. Under current rules: - **Residential property**: NRIs can buy any number of residential properties in India. Acquisition is on a repatriation basis (can repatriate sale proceeds) if funded from NRE account or foreign inward remittance - **Commercial property**: NRIs can buy commercial properties - **Agricultural land, farmhouses, and plantations**: NRIs cannot purchase these without RBI permission **Funding the Purchase** The source of funds matters for repatriation: - Funds from NRE account or foreign inward remittance: sale proceeds can be repatriated (maximum 2 properties) - Funds from NRO account: sale proceeds go into NRO account; repatriation limited to USD 1 million per year **The Power of Attorney Risk** Most NRIs executing property transactions in India use a Power of Attorney (POA) — a general or specific authority given to a local representative. The risks: 1. **Overly broad POA** — a POA that gives authority to sell, mortgage, or transfer without specific limitations can result in the PoA holder transacting without the NRI's knowledge 2. **Unregistered POA** — POAs for immovable property transactions must be registered; an unregistered POA has limited evidentiary value 3. **PoA fraud** — forged or revoked POAs are used in property fraud Best practice: specific POA (limited to the particular property and transaction), registered, with built-in reporting obligations. **The Due Diligence Checklist** Before any property purchase: 1. **30-year title search** at the Sub-Registrar of Assurances 2. **Encumbrance certificate** — 15-30 years 3. **Revenue records** (Fard, Jamabandi, Mutation) 4. **Court search** — local civil, revenue, and High Court records 5. **RERA registration** for under-construction property 6. **Approved building plans** from the local authority 7. **No-objection certificates** from applicable authorities 8. **Society/apartment association NOC** for existing apartments **The Repatriation Documentation** To repatriate sale proceeds after selling the property: 1. Form 15CA and 15CB (tax clearance) 2. FEMA documentation confirming the original source of funds 3. Bank certificate of original remittance 4. Sale deed registration and stamp duty receipts Maintain all original purchase documentation securely — missing documentation at the time of sale creates significant complications.