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From whom can NRIs inherit immovable property?
A person resident outside India (i.e. NRI or PIO or foreign national of non-Indian origin) can inherit immovable property from
(a) a person resident in India.
(b) a person resident outside India
However, the person from whom the property is inherited should have acquired the same in accordance with the foreign exchange regulations applicable at that time.

II. TRANSFER OF IMMOVABLE PROPERTY IN INDIA
A. Transfer by sale
Can an NRI/PIO/foreign  national sell his residential/commercial property?
(a) NRI can sell property in India to:
i)   a person resident in India or
ii)  an NRI or
iii) a PIO.
(b) PIO can sell property in India to
i)   a person resident in India.
ii)  an NRI or
iii) a PIO — with the  prior approval of the Reserve Bank of India
(c) Foreign national of non-Indian origin including a citizen of Pakistan or Bangaladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan can sell property in India with prior approval of the Reserve Bank of India to:
i)  a person resident in India
ii) an NRI
iii) a PIO.

Can an agricultural land/plantation property/farm house in India owned/held by a non-resident be sold?
(a) NRI/PIO may sell agricultural land/ plantation property/farm house to a person  resident in India who is a citizen of India.
(b) Foreign national of non-Indian origin resident outside India would need prior approval of the Reserve Bank of India to sell agricultural land/plantation property/farm house
A. Transfer by gift

Can a non-resident gift his residential/commercial property?
Yes.
(a) NRI/PIO may gift residential/commercial property to
(i) a person resident in India or
(ii) an NRI or
(iii) a PIO.
(b)  a foreign national of non-Indian origin needs prior approval of the Reserve Bank of India.

Can an NRI/PIO/foreign national holding agricultural land/plantation property/farm house in India gift the same?
(a) NRI/PIO can gift but only  to a person resident in India who is a citizen of India.
(b) foreign national of non-Indian origin needs prior approval of the Reserve Bank of India.

Can residential/commercial property be mortgaged?
i) NRI/PIO can mortgage to:
(a) an authorised dealer/housing finance institution in India without the approval of the Reserve Bank of India.
(b) a party abroad with prior approval of the Reserve Bank of India.
ii) a foreign national of non-Indian origin can mortgage only with prior approval of the Reserve Bank of India
iii) a foreign company which has established a branch office or other place of business in accordance with FERA/FEMA regulations has general permission to mortgage property with an authorized dealer in India.

I. MODE OF PAYMENT FOR PURCHASE
How can an NRI/PIO make payment for purchase of residential/commercial property in India?
Payment can be made out of
(a) funds remitted to India through normal banking channels
(b) funds held in NRE/FCNR (B)/NRO account maintained in India
No payment can be made either by traveller’s cheque or by foreign currency notes. No payment can be made outside India.