Safeguarding NRI Property in India

The property in India stands as not just a tangible asset but a symbol of heritage, lineage and familial roots. For Non-Resident Indians (NRIs) owning property in their homeland often serves as a bridge to their origins, a tangible connection to their ancestral past and a potential home should they choose to return. However, the significance of NRI Property in India extends beyond sentimentality. From an economic perspective, these properties often represent significant investments with their values appreciating over the years, given India’s booming real estate market.

Yet, the very absence of the owners in the country has led to a rising trend that jeopardizes the security of these assets: property encroachment. The stories of unauthorized occupation of NRI-owned lands and homes have become increasingly common thus making it difficult for NRIs to maintain property ownership in India.

Rajesh’s Encounter with Encroachment

Rajesh Nambiar, an NRI residing in San Francisco. Born and raised in Kerala, Rajesh moved to the U.S. for higher studies and subsequently settled there. However, he always maintained a strong connection with his roots, a sentiment manifested in the form of a beautiful ancestral home in Kochi, Kerala. Built by his great-grandfather, the house was surrounded by lush coconut groves and its walls echoing stories of generations past.

After years of absence due to travel restrictions and personal commitments, Rajesh decided to pay a visit to his cherished home in 2022, intending to spend a few months there. But upon his arrival, he was met with an alarming sight. His ancestral home was occupied by strangers who claimed to have been living there for over a year. They had set up a small shop within the premises and the once pristine surroundings now bore the marks of neglect.

Stunned and devastated, Rajesh soon discovered that these occupants had taken advantage of his long absence and had produced fabricated lease documents, asserting their right to the property. With the local community having seen the family’s absence for years and with no immediate family in the vicinity there was no one to challenge or even question the encroachers.

Rajesh’s ordeal had just begun. He found himself plunged into a complex legal battle, navigating a system he was unfamiliar with all while trying to reclaim what was rightfully his. The narrative of Rajesh is not an isolated one. It mirrors the experiences of many NRIs who leave behind properties that become vulnerable in their absence.

As we delve deeper into this topic, we aim to equip NRIs with the knowledge and strategies to protect their prized possessions.

NRI Property in India: The Encroachment Dilemma

In India, the property encroachment of NRI properties in India is to an extent where even Indian cinema has touched upon this theme although often dramatizing the issue for cinematic effect. Movies like “Khosla Ka Ghosla” portray the agonizing battles of homeowners against powerful land sharks, drawing audiences into a world where the underdog fights against all odds. While these portrayals might be exaggerated for the silver screen, they are rooted in a harsh reality many face. For countless NRIs, the cinematic depiction isn’t too far from their own experiences. The NRI Properties in India which are left unattended become prime targets for encroachers. What the movies often fail to showcase is the emotional weight of these violations where homes filled with childhood memories or lands inherited from ancestors get overshadowed by the greed of opportunists.

The vulnerability of these unattended NRI properties is multi-faceted. In many instances the local community might be unaware of the actual ownership, especially if the property has remained unoccupied for extended periods. This lack of vigilance paves the way for encroachers to stake illegal claims and sometimes even fabricating documents to strengthen their position. Once encroached upon, the legal eviction process in India is notoriously complex and time-consuming. Navigating through layers of bureaucracy, court hearings and the intricacies of property laws becomes a daunting task for NRIs. Moreover, being geographically distant they often find themselves at a disadvantage, reliant on local contacts or legal representatives who may or may not act in their best interests. This combination of legal labyrinth and geographical separation makes property protection a pressing concern for the NRI community.

The Legal Landscape Surrounding NRI Property in India


Challenges in the Legal Eviction Process

The legal eviction process, especially in a country as vast and diverse as India is a complex mechanism. While it exists to ensure that property rights are upheld and justice is served, the very intricacies of the system present a myriad of challenges for property owners, especially NRIs, seeking to reclaim their rightful assets. 

Here are some of the primary hurdles faced during the legal eviction process:

  • Lengthy Proceedings: Court procedures in India are known for their protracted nature. An eviction case can stretch over months or even years before a final verdict is reached.
  • Complex Legal Framework: The laws pertaining to property and eviction differ from one state to another in India. Navigating through these state-specific regulations requires thorough knowledge and expertise, making it challenging for NRIs unfamiliar with regional nuances.
  • Forgery and Fabricated Documents: Encroachers often come equipped with forged documents to substantiate their illegal occupancy which further complicates the eviction process.
  • High Legal Costs: Pursuing an eviction case involves various expenses from attorney fees to court charges. For many this can act as a deterrent in seeking legal recourse.
  • Physical Absence for NRIs: For Non-Resident Indians, their absence from the country becomes a significant disadvantage. Being unable to attend hearings or directly oversee the process can lead to delays and potential mismanagement of the case.
  • Inefficient Law Enforcement: Even after obtaining a favorable court order, the enforcement of the eviction can be challenging. In certain cases, local law enforcement might be hesitant or slow in implementing the eviction, especially if the encroachers are influential locally.
  • Emotional and Psychological Strain: The emotional burden of witnessing one’s property unlawfully taken often dissuades many from seeing the eviction process through.
  • Potential Retaliation: There is always an underlying risk of retaliation from the encroachers post-eviction, especially if they had established a long-term illegal occupancy. 


The Imbalances in Tenancy Laws

Tenancy laws play a crucial role in ensuring fair practices in the realm of property rental. However, in many jurisdictions, these laws reveal certain imbalances that can tilt in favor of either party, often leading to conflicts and disputes. While these regulations aim to protect the rights of both landlords and tenants, the imbalances can sometimes make the process cumbersome and unjust for one side. Here are some of the notable imbalances observed in tenancy laws:

  • Protection Over Eviction: In many areas, tenancy laws favor tenants regarding eviction, making it tough for landlords to evict even for valid reasons thus resulting in extended legal disputes.
  • Rent Control Acts: Certain jurisdictions have stringent rent control acts which cap the amount of rent that can be charged. While this protects tenants from exorbitant rents, it can be detrimental for landlords, especially if the capped rent doesn’t align with market rates or the maintenance costs of the property.
  • Security Deposit Limitations: Some laws limit the amount of security deposit a landlord can demand. While this ensures affordability for tenants, it might not provide adequate financial security for landlords against potential damages or unpaid rents.
  • Delayed Rent Payments: In cases where tenants delay or default on rent payments, the legal recourse available to landlords might be time-consuming and ineffective, thereby affecting their financial stability.
  • Maintenance Responsibilities: Ambiguities in tenancy laws regarding maintenance responsibilities can lead to disputes. Due to unclear delineations in the law landlords bear the brunt of major repairs even if caused by tenant negligence.
  • Subletting and Unauthorized Use: Some tenancy laws do not adequately address the issue of tenants subletting the property or using it for unauthorized purposes. This leaves landlords vulnerable to misuse of their property without clear legal remedies.
  • Lengthy Legal Proceedings: Should disputes arise, landlords often face lengthy legal proceedings to resolve issues. The time, effort and financial resources required can be draining, especially when the laws are not streamlined for swift resolution.
  • Lack of Clarity on Renewal: Ambiguities in tenancy laws regarding lease renewals can lead to conflicts. Without clear guidelines, tenants might overstay their lease thus leading to further complications for landlords.
  • Inadequate Protection for Tenant Rights: Conversely, in some jurisdictions, tenancy laws might not offer sufficient protection for tenants against arbitrary eviction, sudden rent hikes or other unfair practices by landlords.


Misuse of Laws by Illegal Occupants

Illegal occupants, often termed as “squatters” or “encroachers,” have long been a challenge in the realm of NRI property in India and their rights. One of the primary reasons they’re able to maintain their hold on properties is their adeptness at manipulating and misusing existing laws. Their actions not only deprive rightful owners of their properties but also strain the legal system and undermine the very essence of property rights. 

  • Forgery of Documents: One of the most common tactics employed by illegal occupants is the creation and use of forged property documents. By producing fake title deeds, lease agreements or other relevant papers, they claim legitimacy over the property, complicating the eviction process for the rightful owner.
  • Exploiting Tenancy Laws: Some squatters pose as legitimate tenants, taking advantage of pro-tenant laws that make eviction challenging. By falsely asserting tenant rights, they can prolong their illegal stay, often requiring the actual property owner to navigate a maze of legal proceedings to reclaim the property.
  • Use of Adverse Possession: Adverse possession lets someone claim property ownership after uninterrupted occupation without owner interference. Knowing this squatters may aim to stay long enough to legally claim the property.
  • Manipulating Local Authorities: Illegal occupants can collude with corrupt local officials or authorities, ensuring that any complaints against them are either ignored or not acted upon promptly.
  • Playing the Sympathy Card: By projecting themselves as victims—perhaps as impoverished families with nowhere else to go—they can sometimes sway public opinion and make eviction efforts appear inhumane.
  • Challenging Ownership: Some illegal occupants take the aggressive route by directly challenging the ownership of the rightful owner. 
  • Delaying Legal Proceedings: Once a legal case is initiated against them, squatters often employ tactics to delay court proceedings. This can include constantly changing lawyers, seeking multiple adjournments or raising new issues.
  • Taking Advantage of Legal Ambiguities: In regions where property laws are not clearly defined or are open to interpretation, squatters can exploit these ambiguities to strengthen their hold on the property.
  • Threats and Intimidation: In more extreme cases, illegal occupants resort to threats, violence or intimidation against the rightful property owners or their representatives. 

Fortifying Your Legal Position on NRI Property in India

For Non-Resident Indians (NRIs), protecting their property in India from illegal encroachments and disputes is of paramount importance. Ensuring a fortified legal position requires a multi-pronged approach:

The Power of Robust Documentation

Maintaining up-to-date and comprehensive documentation is the cornerstone of safeguarding any property. This includes title deeds, purchase agreements, tax receipts, utility bills and any other relevant papers that establish ownership and rights over the property. For NRIs, having these documents in order and preferably digitized can act as a significant deterrent against potential encroachers who often prey on properties with ambiguous documentation.

Expert Guidance from Advocates

Legal intricacies can be daunting, especially in the vast landscape of Indian property laws. Engaging experts like A Agarwalla & Co. ensures that NRIs receive tailored advice, taking into account state-specific regulations and local nuances. Such guidance can aid in preempting potential issues, understanding rights and obligations and swiftly addressing any challenges that arise.

Collaborating with Neighbors and Periodic Property Inspections 

An NRI’s physical absence from the property can sometimes be an invitation for encroachers. Forging strong relationships with neighbors can act as a protective measure. Neighbors, being on-ground and in proximity, can notify the owner of any unusual activities or changes concerning the property. Periodic inspections, either by trusted contacts or professional agencies also ensure that the property is regularly monitored. Such visits signal to potential encroachers that the property is not abandoned and is under watch, thereby reducing the risk of unauthorized occupation.

Tailored Recommendations for Different NRI Properties in India

For Land Plots

  • Harnessing Technology: Modern technology, such as satellite imagery and online land record databases allows NRIs to monitor their land remotely. 
  • Merits of Gated Communities: Investing in land within gated communities offers added security. Such communities often have dedicated security services, community guidelines and surveillance systems thus ensuring that plots remain protected from illegal occupants.
  • The Specificity in Power of Attorney (PoA): If an NRI needs to assign someone to act on their behalf regarding their land it’s crucial to have a specific PoA. This document should clearly outline the rights and limits of the representative.
  • Opting for Fencing and Expert Monitoring: Physically marking the boundaries of a plot through fencing acts as a deterrent to encroachers. Hiring expert services that periodically inspect and monitor the land can also ensure that it remains free from unauthorized activities.
  • Constructing on the Property: Building even a small structure on the plot can significantly reduce the risk of encroachment. Such constructions indicate active ownership and can be used to generate rental income as well.

Regarding Tenancy 

  • Crafting Strong Tenancy Agreements: A well-drafted tenancy agreement that clearly defines terms, conditions and both parties’ responsibilities can prevent potential disputes. It’s advisable for NRIs to consult with legal experts when finalizing such agreements.
  • Registering Tenants with Local Police: In many places, landlords can (or are required to) register their tenants with the local police station. This step provides an added layer of security and accountability.
  • Keeping Track of Rental Payments: Regularly monitoring rental payments ensures that tenants maintain their obligations. Any inconsistencies in payments can serve as early indicators of potential issues.
  • Pre-screening Tenants: Before renting out a property, it’s essential to conduct a thorough background check on potential tenants. This can provide insights into their financial stability, rental history and overall reliability.
  • Extra Precautions for Senior Citizens Renting Out Properties: Senior citizens are sometimes viewed as easy targets by unscrupulous tenants. If elderly NRIs or their elderly relatives are involved in renting out properties, additional measures such as more frequent property checks or engaging local community support can be beneficial.



Owning property in India as a Non-Resident Indian (NRI) carries with it not just the joy of a tangible connection to one’s roots but also the responsibility of safeguarding this valuable asset. In a landscape where encroachments and legal disputes are all too common, the emphasis on proactive measures cannot be overstated. Vigilance, in this context, extends beyond periodic checks; it involves a deep understanding of local property laws, fostering connections with trustworthy neighbors and local authorities and staying updated on any changes or potential threats. Legal preparedness from meticulously maintained documentation to consulting with seasoned legal professionals ensure that if disputes do arise, NRIs are equipped to address them swiftly and effectively. In essence, the protection of NRI property in India is a continuous endeavor, blending vigilance, legal acumen and a proactive mindset to ensure that one’s ties to the homeland remain unblemished and secure. 

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