Buying Property in Nagpur as an NRI or Outstation Buyer

Whether you are a buyer residing in another city or abroad, buying property in Nagpur can be a challenging process. While the property can be sold online, the process of buying property requires site visits for inspection of the property, verifying documents and attending to the registration process, which can all be a big challenge for an outstation buyer.

It is advisable to keep a clear distinction between the two separate issues: the legality of buying a property as an outstation buyer/NRI and the verification of land/project and subsequent payment/registration plans.

What Changes for an NRI Compared With an Outstation Indian Buyer?

An Indian citizen living outside a state can also buy property in Nagpur under the same property laws as a citizen living in Nagpur. The major concern for someone looking to purchase property outside Nagpur is the practicality of site visits to verify original documents and to complete registration.

An NRI or OCI buyer has an additional FEMA layer.

Can an NRI Buy Land in Nagpur?

RBI rules permit NRIs/OCIs to acquire immovable property in India (other than agricultural land/farmhouses/plantation property), and this can be paid for by money transfer to India through banking channels or by debit to eligible Non-Resident (External) Accounts. Foreign currency notes/travellers' cheques are not permitted for payment.

When considering a residential plot, it is essential to note the land status of the said property. Even if it is being referred to as a “plot”, it could be agricultural land or NA land.

Hence, while making comparisons of property in Nagpur, it is important to ascertain:

• If the land is agricultural or non-agricultural
• Use that is allowed for the property
• Approval of the plotted layout, if any
• Registration of the project with MahaRERA wherever required
• Identification of the individual plot in the sanctioned layout

For a more detailed explanation, refer to the guide on differences between NA land and agricultural land in Nagpur. Importantly, under FEMA, agricultural land is treated differently from normal residential property.

Complete Independent Verification Before Paying Remotely

Distant buyers can’t be expected to carry out less due diligence merely because they live far away. They are more likely to need a formal process for verifying facts than someone based locally because they are unlikely to be able to go to the property or local government offices in person.

Obtain and verify key documents prior to payment of large booking fees or token amounts. Do not rely solely on documents provided by a seller or their sales representative.

The review must include:

• Owner at present and chain of title
• Survey/Gat/CTS and plot details
• Latest land records
• History of mutation
• NA or residential-use status, if any
• Sanctioned plotted layout
• MahaRERA information, if applicable
• Legal access to the plot
• Existing mortgage or lien on the plot
• Dimensions of the plot and its location in the project

Local property lawyers and surveyors can verify the title and check the property documents whilst also inspecting the physical plot(s). They should report their findings to the buyer directly.

Do Not Skip the Physical Site Visit

While remote documents can be helpful to establish a first understanding of a legal matter, it is recommended to carry out a physical check by the buyer or their representative before the transaction progresses too far.

Verify the approach road, plot boundary, frontage, ground level, drainage and surrounding property use. For project plots, verify that the plot shown is the actual plot number and location within the overall project layout.

For outstation and NRI buyers, it is also important to make a distinction between the current and proposed infrastructure of a project. For example, a road, club, gardens or utility shown in the project materials may be in the process of development, and hence their status needs to be verified at the time of the purchase.

The buyer may not be able to travel for the registration to be completed. The buyer can appoint someone to act on their behalf by completing a Power of Attorney, where such is permitted by the relevant legislation. The document should be a specific document prepared for the particular transaction and contain provisions as to execution, stamping and registration, as appropriate, and not a general document.

How Should an NRI Pay for Property in India?

Consideration for permitted property transactions by NRIs and OCIs has to be routed through banking channels as per RBI rules. Payment can be made by inward remittance or by crediting from eligible accounts in India, like their NRE/FCNR(B) accounts or their NRO accounts, subject to banking regulations and FEMA rules applicable in such cases.

Further, proof of all payments, including payment of the booking amount and all subsequent instalments until full consideration is paid, should be kept by the buyer, and such payments should be reflected in the agreement against the payment schedule.

Also note that prior to making any payments, it is vital that the buyer checks tax compliance on the transaction. If a non-resident buyer is purchasing property from a resident, then TDS may be applicable under the Income-tax Act, 2025. Such transactions will need to be reported on the relevant schedule of Form 141 with reference to the buyer’s category and applicable tax rules.

Tax implications for consideration paid by an NRI vary depending on the NRI, the resident seller and the transaction structure. A tax professional should be consulted to establish the relevant TDS and PAN requirements before payments are made.

Why a Planned Project Can Be Easier to Evaluate Remotely

Buyers who reside outside of Nagpur can take comfort from the fact that a planned plotted development offers a more organised set of project-related information to study. However, all independent checks need to be done and verified in order to ensure authenticity.

Marina Nagpur by The House of Abhinandan Lodha features 78 acres, and the sizes of plots on offer start from 1,250 sq. ft. The project is registered with MahaRERA under PP1190002502095.

For an outstation or NRI buyer, verification of plot number and area, the project’s regulatory disclosures, payment schedule and registration process are crucial. It is always a good idea to make a site visit to the project and rely on more than just a presentation on their website.

A Practical Buying Process for Remote Buyers

Following a simple sequence can help ensure that important checks are not missed:

• Ensure that you are legally qualified to purchase this kind of property.
• Ensure the title, land status and project approval independently.
• Check out the site physically or assign someone who will.
• Look into the contract, payment plan and all extra fees included.
• In case you are an NRI, check out compliance with FEMA and other financial aspects.
• Make sure of your participation in registration or another legally accepted representative's availability in advance.
• Keep the registered documents and make changes in the land records later on, if necessary.

The sequence works better than doing a digital booking first and solving the issues later.

Conclusion

Purchasing a property in Nagpur from another city in India involves verification and logistics. For an NRI, verification is further complicated by additional requirements under FEMA with respect to the type of property and method of payment that can be used.

Whether you are buying a property from another city or abroad, the verification process may have to change, but due diligence need not decrease. For an NRI or outstation buyer, verification of a property in Nagpur can be done by an independent title check, verification of land use, a physical site visit to understand the actual property and a clear payment and registration plan.

FAQs

Can an NRI buy a residential plot in Nagpur?

Yes, generally. As per RBI rules, immovable property such as residential or commercial properties can be purchased by NRIs and OCIs except for agricultural land, farms or plantations. The status of the land and other required approvals need to be verified for the plot in question.

Can an NRI pay for property directly from an overseas account?

Payment can be made via permitted inward remittance via normal banking channels or via eligible non-resident accounts such as NRE/FCNR(B)/NRO accounts. Payment by foreign currency notes/travellers' cheques is, however, not allowed under current RBI rules.

Does an outstation buyer need to visit Nagpur before buying?

Although there is no general requirement that all buyers have to physically visit a property prior to purchase of a plot, it is strongly recommended that a buyer visit the plot prior to purchase. If the buyer cannot travel, then the buyer can appoint someone else, such as a family member or friend, or a qualified professional to inspect the plot and verify information such as access to the plot, boundaries of the plot and site conditions prior to the buyer proceeding with the transaction.