For Canadians holding an Overseas Citizen of India (OCI) card who want to invest in Indian real estate without physically travelling to India, the question is common:

👉 Can you buy property through a Power of Attorney (POA)?

👉 What is the exact lawful process?

👉 What are the required documents, legal risks, and government rules?

This guide answers these questions in simple language — but with professional legal precision — so you and your family can make informed, compliant investment decisions in Indian property law.

Can an OCI Card Holder Buy Property in India Without Coming to India?

Yes — Generally, Yes

As per Indian law under the Foreign Exchange Management Act (FEMA) and its Rules (especially Foreign Exchange Management (Non-Debt Instruments) Rules, 2019), an OCI card holder is legally allowed to:

✅ Purchase residential & commercial property in India

❌ Except agricultural land, plantation property, or farmhouses (unless inherited)‎  

Under FEMA Section 5 & Section 46, OCIs enjoy general permission to acquire immovable property without prior approval of the Reserve Bank of India (RBI), provided all payments are made through permissible banking channels.  

📌 Important Legal Foundation

📜 1. FEMA 1999 & Non-Debt Instruments Rules

Contains the core rules on foreign acquisition and transfer of immovable property.

OCIs fall under the permitted class (similar to Non-Resident Indians (NRIs)).

Purchase of residential or commercial property requires no RBI approval; agricultural-related property does.  

📜 2. Transfer of Property Act, 1882

Governs how property rights can be transferred through sale deeds, wills, or POA.

Under Section 5 & Section 54 (Definitions) it recognises valid conveyance through registered instruments.  

📜 3. Indian Registration Act, 1908

All instruments dealing with immovable property (including sale deeds and POA) must be registered at the local Sub-Registrar’s office for legal effect.

Notarised but unregistered POA is legally ineffective as a transfer instrument.  

Can a POA Be Used to Buy Property Without Physical Presence?

Yes — But Only If Done Correctly.

A Power of Attorney allows your appointed representative in India to act on your behalf for specific property dealings including:

➡ Identifying property

➡ Negotiating price

➡ Signing the sale agreement

➡ Executing the sale deed

➡ Attending registration formalities

But there are legal requirements:

1️⃣ Special/Specific Power of Attorney (SPA)

a. Must be carefully drafted to clearly list powers — e.g., negotiation, signing agreements, registration, tax payments.

b. A general POA is insufficient for property purchase.  

2️⃣ Attestation/Apostille

If executed outside India, the POA must be:

a. Notarised in Canada (or local state)

b. Then either:

✔ Apostilled (if Canada is Hague member), or

✔ Attested by the Indian Consulate/Embassy

This ensures Indian authorities accept it as authentic.  

3️⃣ Registration in India

The POA must be:

📍 Registered with the Sub-Registrar Office where the property is located

📍 Paid applicable stamp duty (state-specific)

Note: A notarised POA alone — without registration — is not legally effective to deal with property.  

🧭 Step-by-Step Process to Buy Property via POA (Canadian OCI)

This process helps you purchase legally and securely without traveling:

🔎 Step 1: Identify the Property

a. Confirm seller’s title

b. Conduct title and encumbrance search

c. Ensure no litigation or fraud history

‼ This is where legal due diligence done by an expert law firm like KHA Advocates protects you.

🖋️ Step 2: Draft and Execute Power of Attorney

Your Canadian OCI must:

✔ Choose the attorney (trustworthy person in India)

✔ Draft a specific SPA

✔ Notarise it in Canada (state)

✔ Apostille/Consulate attestation

✔ Ship properly sealed to India

✔ Get it registered locally with stamp duty paid

📌 POA must be time-bound, specific & covers registration authority.

💸 Step 3: Arrange FEMA-Compliant Payment

Payment for property must follow FEMA guidelines:

✅ Through inward remittance

OR

✅ From your NRE, NRO, or FCNR(B) account

❌ Cash/Foreign currency notes/Traveler’s cheques NOT ALLOWED.  

📄 Step 4: Sale Agreement & Registration

Your attorney will:

1. Sign the Agreement to Sell

2. Pay earnest deposit

3. Prepare the Sale Deed

4. Pay stamp duty & registration fees

5. Register the sale deed at Sub-Registrar’s Office

Only a registered Sale Deed transfers ownership. — POA itself does not transfer rights legally.  

🧾 Step 5: PAN & Tax Compliance

OCI must hold:

✔ Indian PAN Card (Income Tax purpose)

✔ Comply with TDS requirements (if applicable)

✔ File Income Tax return if rental income earned

PAN is essential for registration and taxation.  

🏦 Step 6: Repatriation of Sale Proceeds (Future)

If the OCI sells later and wants to bring money abroad:

✔ Repatriation of sale proceeds is allowed subject to RBI rules and compliance with FEMA and tax laws.

📌 Common Legal Pitfalls to Avoid

❌ Using a Notarised POA only without registration

❌ Ambiguous or blank powers

❌ POA not consulate-attested or apostilled

❌ Missing PAN or TDS compliance

❌ Paying outside permissible channels

Yes — a Canadian OCI card holder can legally buy residential or commercial property in India without coming to the country, provided all legal formalities are followed, especially through a registered Power of Attorney and FEMA-compliant payment methods.

This method is entirely lawful and widely used, but depends heavily on:

✔ Properly drafted, attested & registered POA

✔ Clear title & due diligence

✔ RBI/FEMA compliance

✔ Local Registration compliance

Why Choose KHA Advocates?

We specialize in:

✔ OCI & NRI Property Transactions

✔ Power of Attorney Drafting & Registration

✔ FEMA & RBI Compliance

✔ Property Title Verification

✔ Sale Deed Registration Support

✔ Cross-Border Real Estate Advisory

We assist clients globally — including Canada, USA, UK, Australia & Middle East.

Contact Details :

KHA Advocates [Law Firm]

Google Location : https://share.google/oFGKBu7PpPPNJalp0 

New Town, Hatiara, Dhankal, Noapara, Kolkata, West Bengal 700157

📞 Phone: +91-94-777-5-888-5

📱 WhatsApp: +91-8010-555-666

📧 Email: contact@khaadvocates.in

🌐 Website: https://www.khaadvocates.com 

🗓 Book Consultation: 👉 https://khaadvocates.com/book-consultation