Can an NRI or OCI buy, sell or inherit property in Odisha, and how is it done from abroad?

NRI property in Odisha: who the rules cover

NRI property in Odisha is governed by two sets of rules at once. Ownership, registration and land records follow the ordinary Odisha law (the Registration Act, the Indian Stamp Act as applied in Odisha, the Odisha Land Reforms Act and the Record of Rights). What a person living abroad may acquire and how money moves is governed by the Foreign Exchange Management Act, 1999 (FEMA) and the rules and directions made under it by the Central Government and the Reserve Bank of India.

The FEMA rules distinguish between a non-resident Indian (NRI), an Indian citizen resident outside India; an Overseas Citizen of India (OCI) cardholder, a foreign citizen registered as OCI; and other foreign citizens, who face much tighter limits and are not covered here. Residence for FEMA depends on where a person lives and intends to stay, not only on the passport.

What NRIs and OCIs can buy

• Allowed: residential and commercial immovable property, such as a flat in Bhubaneswar, a house plot with homestead (gharabari) kisam, or a shop. There is no limit on the number of such properties.
• Not allowed by purchase: agricultural land, plantation property and farm houses. In Odisha this means land recorded under an agricultural kisam in the Record of Rights cannot be bought by an NRI or OCI unless it has first been lawfully converted. See land conversion under Section 8-A.
• Payment: the price must be paid from money sent to India through normal banking channels or from the buyer's NRE, FCNR(B) or NRO account. Payment in foreign currency notes or traveller's cheques is not allowed.
• Home loans from Indian banks are available to NRIs under RBI rules; the bank will apply its own title checks.

Before buying, run the same checks a resident would: the RoR on Bhulekh, the chain of deeds, an encumbrance certificate and, for flats, ORERA registration and the apartment-law papers. See the land-buying checklist and apartment ownership in Odisha.

Gift and inheritance: what an NRI can inherit

• Inheritance: an NRI or OCI can inherit any immovable property in India, including agricultural land, from a person resident in India, or from a person resident outside India who had acquired it lawfully.
• Gift: an NRI or OCI can receive residential or commercial property by gift from a relative, but not agricultural land, plantation property or a farm house.

Inherited land in Odisha still has to be brought into the heir's name. The usual steps are a legal heir certificate or probate where there is a will, followed by mutation at the Tahasil. Banks and companies may ask for a succession certificate for deposits and shares. If several heirs live in different countries, they can divide the property by a registered partition deed or family settlement, each signing in Odisha or through an attorney.

Selling inherited or owned property from abroad

• Residential or commercial property can be sold to a resident Indian, another NRI or an OCI.
• Agricultural land, plantation property or a farm house (usually inherited) can be sold only to a person resident in India who is an Indian citizen.

The sale deed is executed and registered at the Sub-Registrar's office where the property lies, with stamp duty and fees paid as for any sale; see sale deed registration in Odisha. The seller can come to Odisha and sign in person, or act through an attorney.

NRI power of attorney to sell property

A person living abroad can sign a power of attorney before an Indian embassy or consulate, a notary or a court in that country. In outline:

1. Draft a specific power naming the property exactly as in the RoR (mouza, khata, plot, area) and listing each act allowed: signing the agreement and sale deed, receiving the price into a named account, appearing for mutation.
2. Execute and attest it abroad in the form the Registration Act accepts for presenting a deed.
3. Get it stamped in Odisha within three months of its first arrival in India, by presenting it to the Collector for adjudication under Section 18 of the Indian Stamp Act.
4. Check with the Sub-Registrar before the appointment what proof is needed that the principal is alive and the power is still in force.

Registration, stamp duty and revocation are covered in detail in power of attorney in Odisha. Insist that the price is paid into the owner's own bank account, not to the attorney in cash.

Tax at source when buying from an NRI

A buyer purchasing property from a non-resident seller must deduct income tax at source from the payment and deposit it, which requires the buyer to hold a TAN. This was Section 195 of the Income-tax Act, 1961; the Income-tax Act, 2025 has applied from 1 April 2026, so check the corresponding provision and current rates for payments made after that date. The seller can apply to the income-tax authorities for a certificate of lower or nil deduction, based on the actual capital gain, before the sale. Buyers who deduct at the lower rate meant for resident sellers can be held liable for the shortfall, so ask the seller to confirm residential status in writing.

Repatriation of sale proceeds

• Sale proceeds of property bought in accordance with FEMA can be sent abroad for up to two residential properties. Where the property was paid for in foreign exchange or from NRE/FCNR(B) funds, repatriation is limited to the amount originally paid in foreign exchange.
• Money in an NRO account, including the sale proceeds of inherited property, can be remitted abroad up to USD 1 million per financial year in total, after tax is paid, with the documentation the bank asks for (usually including a chartered accountant's certificate and the income-tax forms for foreign remittance).

Limits and procedures are revised by the RBI from time to time; confirm the current position with your authorised dealer bank before signing a sale.

Looking after land in Odisha while living abroad

• Check the RoR on Bhulekh every few months for unexpected changes in name or area.
• Keep land revenue paid online; see paying land revenue (khajana). In towns, keep holding tax paid as well.
• Fence and mark the plot, and get a periodic encumbrance certificate from IGR Odisha to spot a fraudulent sale early.
• If you let out a house, use a written, registered rent agreement; see renting in Odisha.
• If someone has encroached or forged a deed, act promptly: see cancelling a fraudulent sale deed and adverse possession.

Related work handled is described under land and property and drafting and opinions.

Frequently asked questions

Official sources

• Reserve Bank of India: foreign exchange management notifications and master directions
• Foreign Exchange Management Act, 1999 and Indian Stamp Act, 1899 (India Code)
• Income Tax Department: e-filing portal and lower deduction certificates
• IGR Odisha: registration, encumbrance certificates and market value
• Bhulekh: Odisha land records

General information, not legal advice. Every matter turns on its own facts and documents, and the law and official procedures change. Check the current position with the concerned office, or take advice on your own facts, before acting.