Can NRIs Buy NA Plots in India? Rules, FEMA & Repatriation

Can NRIs buy NA plots in India? Yes. A Non-Resident Indian can buy a residential non-agricultural (NA) plot, but not a farmhouse or agricultural land. The difference between those two categories is exactly where NRIs get caught, so it is worth understanding before you do anything else.

If you are researching Karjat specifically, our Karjat location guide and the Karjat investment overview give you the destination context you need alongside the regulatory picture below. For a feel for what makes the area worth the trip, the monsoon experience in Karjat and a perfect Karjat weekend itinerary capture the lifestyle side.

Under the Foreign Exchange Management Act, 1999 (FEMA) and the Reserve Bank of India's rules, notably the FEMA Acquisition and Transfer of Immovable Property Regulations, 2018, and the RBI Master Direction on immovable property, an NRI or Overseas Citizen of India (OCI) can buy residential and commercial property freely. There is no cap on the number. What they cannot buy is agricultural land, plantation property, or a farmhouse.

A residential NA plot is allowed. An agricultural plot, or a farmhouse parcel, is not.

In Karjat, the word "farmhouse" is a FEMA trap. A house built on residential NA land is fine. A farmhouse on agricultural land is off-limits for an NRI, however it is marketed.

Karjat marketing leans heavily on "farmhouse plots", and many of those are agricultural or green-zone parcels. For a resident buyer that is a question of conversion and process. For an NRI it is a question of legality. Before you go any further, confirm the parcel is residential NA on the 7/12 extract and that an NA sanction order exists. See NA plot vs agricultural land for how to tell them apart, and how to read a 7/12 extract to understand what you are looking at on the land record.

The restriction on agricultural land is firm.

• You cannot buy agricultural land, plantation property or a farmhouse, even if you plan to convert it later.
• You cannot buy it through a company.
• You cannot buy it in someone else's name. That creates a separate set of benami-law problems.

The penalty is civil rather than criminal, but it is steep: up to three times the amount involved, and the property can be confiscated. In one 2024 case, an OCI cardholder who bought agricultural land for Rs 13.68 lakh was penalised Rs 41.04 lakh, three times the purchase price, even after cooperating and selling the land. The only legitimate ways for an NRI to hold agricultural land are by inheritance, or as a gift from a resident Indian relative as defined under FEMA. We cover those routes in why NRIs cannot buy agricultural land, and the workarounds.

Payment has to move through proper banking channels. NRIs fund purchases from a Non-Resident External (NRE) account, a Non-Resident Ordinary (NRO) account, or a Foreign Currency Non-Resident (FCNR) account. Payment in foreign currency notes or traveller's cheques is not allowed.

Financing is available too. Indian banks and housing finance companies typically fund up to about 80% of the property cost for NRIs, with repayment routed through NRE, NRO or FCNR accounts. See financing a plot: loans, LTV and construction loans. For more on how to move money into and out of India cleanly, read legal channels to send money home.

If you cannot travel for the transaction, a registered, specific Power of Attorney (POA) to a trusted person in India lets them sign the agreement, attend registration and complete the mutation for you. Keep it specific to the transaction rather than a broad general POA, and have it attested at the Indian consulate if you execute it abroad. See power of attorney for overseas buyers, done safely.

When you eventually sell, the rules on moving funds abroad depend on how you originally paid.

• Sale proceeds are first credited to your NRO account.
• If you bought the property with NRE or FCNR funds, you can repatriate up to the amount you originally brought in, for up to two residential properties.
• If you bought with NRO funds, meaning Indian-source income, you can repatriate up to USD 1 million per financial year from the NRO account.
• The paperwork runs through an Authorised Dealer bank and needs Form 15CA, a chartered accountant's Form 15CB, and Form A2. Skipping these can block the transfer.

More detail in legal channels to send money home.

When an NRI sells property, the buyer must deduct Tax Deducted at Source (TDS) before paying, at higher rates than apply to resident sellers, so factor that into your timing. At purchase, you will also need to account for stamp duty and registration; stamp duty and registration in Maharashtra has the current rates and what to expect at closing. Long-term capital gains, on property held more than 24 months, are currently taxed at 12.5% without indexation, while short-term gains are taxed at slab rates. If your country of residence has a Double Taxation Avoidance Agreement (DTAA) with India, you may be able to reduce or claim credit for the tax. See capital gains tax on selling land and TDS on property purchase.

1. Confirm the plot is residential NA. Check both the 7/12 extract and the NA sanction order.
2. Verify title and legal access independently, through a local property lawyer. See title search: verifying clear ownership for how the process works. If you can visit the plot in person, use the site visit checklist to make the most of the trip. Even for an NRI buyer, one on-ground visit before signing is worth the journey.
3. Fund the purchase through NRE, NRO or FCNR accounts and keep the money trail clean.
4. Use a registered, specific Power of Attorney if you cannot attend in person.
5. File Form 15CA and 15CB for any repatriation, and keep dated copies of every document.

A fuller version is in the NRI documentation checklist for buying land.

Once you have the regulatory picture clear, the transaction steps are the same as for any buyer. How to buy an NA plot: a step-by-step guide walks you through every stage from budget to mutation. When you are ready to look at specific properties in Karjat, Avacasa's Karjat listings are a curated starting point with verified legal status.

FEMA is not designed to keep NRIs out of Indian property. It is designed to keep the property type permitted, the money trail clean and the taxes paid. Get the residential-NA classification right, and a Karjat plot is a straightforward, compliant purchase. For answers to common questions about NA plots specifically, the NA plots FAQ is a good final reference. This is general information rather than legal or tax advice, so confirm your specifics with a qualified professional.

• FEMA rules for NRI property in India: 2026 guide (Assetly)
• Can NRI cardholders legally purchase agricultural land in India (Legum Attorney)
• FEMA guidelines for NRIs in 2026 (xflowpay)
• Agriculture land laws for NRI in India (India For NRI)