In case of NRI, OCI, PIO it is being governed by Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2018, section 3 of the act is recited as under:
3. Acquisition and Transfer of Property in India by a Non-Resident Indian or an Overseas Citizen of India:-
An NRI or an OCI may
(a) acquire immovable property in India other than agricultural land/ farm house/ plantation property:
Provided that the consideration, if any, for transfer, shall be made out of (i) funds received in India through banking channels by way of inward remittance from any place outside India or (ii) funds held in any non-resident account maintained in accordance with the provisions of the Act, rules or regulations framed thereunder.
Provided further that no payment for any transfer of immovable property shall be made either by traveler’s cheque or by foreign currency notes or by any other mode other than those specifically permitted under this clause.
(b) acquire any immovable property in India other than agricultural land/ farm house/ plantation property by way of gift from a person resident in India or from an NRI or from an OCI, who in any case is a relative as defined in section 2(77) of the Companies Act, 2013;
(c) acquire any immovable property in India by way of inheritance from a person resident outside India who had acquired such property (a) in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations or (b) from a person resident in India;
(d) transfer any immovable property in India to a person resident in India;
(e) transfer any immovable property other than agricultural land/ farm house/ plantation property to an NRI or an OCI.
Going through the above it is clear that an NRI /OCI cannot buy Agricultural land/farm/property without prior approval from RBI, however, they can inherit the property. Further, NRI /OCI also can not acquire agricultural property through gifts. The only manner to acquire the agricultural property by NRI / OCI is Inheritance.
If an NRI /OCI acquire agricultural property through inheritance then they can sell it only to a resident.
There is also some restriction on the repatriation of sale proceeds of immovable properties.
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