- FEMA Rule 28 Bar: Citizens of 11 nations cannot get Indian land by Will or inheritance without prior RBI nod.
- The 11 Restricted Nations: Pakistan, Bangladesh, Sri Lanka, China, Afghanistan, Iran, Nepal, Bhutan, Macau, Hong Kong, and North Korea.
- Enemy Land Vesting: Land owned by people who moved to Pakistan or China vests for good in the Custodian of Enemy Property.
- 2017 Retroactive Law: The 2017 law overturned court rulings. Succession laws do not apply. Indian heirs cannot inherit enemy land.
- Civil Courts Barred: Civil courts cannot hear cases on enemy land under Section 18B. Only High Courts have writ powers.
- Help for Indian Heirs: Indian co-owners must do land title audits and file revenue partition suits to clear their shares.
Cross-border family ties in South Asia often lead to land title disputes. Many Indian families own ancestral homes or farm plots. In many cases, one branch of the family moved abroad long ago. During Partition in 1947, some relatives moved to Pakistan. Others moved to East Pakistan, now Bangladesh. Over time, some descendants took citizenship in Sri Lanka, China, or other neighboring countries.
Years later, the family in India wants to sell or divide the ancestral land. Soon, a title lawyer raises red flags. What happens to the share of a cousin who lives in Pakistan or Bangladesh? Can that relative inherit land through an Indian Will? Can they sign a power of attorney or gift their share to Indian cousins?
Under Indian law, cross-border inheritance follows two strict statutes. First is Rule 28 of the FEMA Non-Debt Instruments Rules, 2019. Second is the Enemy Property Act, 1968, as amended in 2017. These laws bar property transfers to specific foreign citizens. They also vest enemy assets in the Government of India. In this guide, we explain these rules and how Indian co-owners can clear their land titles. To check family shares under Indian succession laws, visit our free succession calculator or use our will drafting checklist.
1. Can Citizens of Pakistan & Bangladesh Inherit Indian
The short answer is no. Under Indian foreign exchange laws, citizens of Pakistan and Bangladesh cannot get land or flats in India through a Will, gift, or inheritance without prior written nod from the Reserve Bank of India (RBI).
Many people confuse standard NRI rules with restricted country rules. Under Section 6(5) of the Foreign Exchange Management Act, 1999 (FEMA), most foreign citizens (like US or UK passport holders) can inherit land from an Indian resident. They do not need prior RBI approval.
However, Section 6(5) is subject to central rules. Under Rule 28 of the FEMA Non-Debt Instruments Rules, 2019, the Central Government set strict rules for eleven countries. For citizens of these eleven nations, general permission does not exist. Even if an Indian father writes a registered Will leaving a home to a child in Pakistan, Bangladesh, or Sri Lanka, that bequest is not valid without prior RBI approval.
A person who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Macau, Hong Kong, or North Korea cannot acquire or transfer immovable property in India, other than a lease up to five years, without prior RBI approval.
2. Rule 28 FEMA 2019: Mandatory Prior RBI Approval for 11 Nations
The Reserve Bank of India enforces Rule 28 with great care. The rule covers both buying and selling land in India. It blocks both sides of a land deal.
This rule creates two clear legal bars:
- Bar on Getting Title: A citizen of any of the eleven nations cannot take title by Will, gift, purchase, or succession. Land registrars cannot enter their names on land records without written RBI permission.
- Bar on Transferring Title: If a citizen of these nations already owns an ancestral share, they cannot sell, gift, or surrender it. They cannot sign a power of attorney or relinquishment deed for Indian cousins without prior RBI approval.
Any deed executed without prior RBI nod is void under Section 13 and Section 43 of FEMA. Revenue officers who register such deeds face strict penalties. If you need help with NRI estate planning, view our NRI Will Drafting Services.
3. The 11 Restricted Nationalities Under Rule 28 NDI Rules
Rule 28 lists eleven countries due to national security and border rules. Here is the full list and how it works in real life:
Falls under Enemy Property Act. No inheritance allowed without prior RBI and Home Ministry clearance.
Partition and 1971 war ties. Land shares need Custodian review and prior RBI approval.
Southern land disputes. Sri Lankan citizens cannot take or sell land without prior RBI nod.
Family gifts and Wills need a formal request to the RBI Foreign Exchange Department.
1962 war legacy. Assets face strict security review under Enemy Property laws.
Old trade and family holdings require formal screening under RBI exchange rules.
Citizens residing in Nepal need RBI approval to acquire land holdings in India.
Subject to cross-border rules and prior banking approval before title mutation.
Special region under China security rules for real estate acquisitions.
Special region of China. Heirs must check citizenship rules under Rule 28.
Total statutory bar under Indian foreign exchange and sanction rules.
Indian co-owners cannot sell ancestral land until overseas shares are partitioned or cleared.
The rule has a strict proviso. Even if a citizen of one of these eleven nations lives in India on a visa, they still cannot buy or take land without prior RBI approval. They can only take a short lease of up to five years.
4. Enemy Property Act, 1968: The 2017 Retrospective Amendment Trap
FEMA Rule 28 sets foreign exchange rules today. But the Enemy Property Act, 1968 has much harsher results for families whose relatives moved to Pakistan or China during past wars.
During the 1962 Sino-Indian War and 1965 India-Pakistan War, the Indian Government seized properties of people who took Pakistani or Chinese citizenship. In 1968, Parliament passed the Enemy Property Act. This law vested all such assets in the Custodian of Enemy Property for India (CEPI) under the Ministry of Home Affairs.
For years, family members in India hoped that when the migrated relative died, the land would pass to Indian heirs under normal succession laws. But in 2017, Parliament passed the Enemy Property (Amendment and Validation) Act, 2017. This amendment applies back to 1968.
The 2017 law states that an enemy includes legal heirs and successors. This rule applies even if the heir is an Indian citizen. If an ancestor was an enemy subject, their heirs cannot escape that status.
Section 5B states that normal succession laws do not apply to enemy property. This includes Hindu law, Muslim law, and the Indian Succession Act. No enemy asset can pass to any heir by Will or death.
Any sale, gift, or transfer of enemy land by an owner or agent is void. Transfers made before or after the law have zero legal force.
Because of this retroactive law, if land vested in the Custodian in 1968, it stays vested forever. Even if the enemy owner died in 1975, and their children stayed in Delhi or Lucknow as proud Indian citizens, those children cannot inherit that vested share.
5. Landmark Precedent: Raja of Mahmudabad and Section 18B Bar
Court battles over enemy land peaked in the famous case of the Raja of Mahmudabad.
In Union of India v. Raja Mohammad Amir Ahmad Khan (2005) 8 SCC 696, the Raja moved to Pakistan in 1957. But his wife and son stayed in India as citizens. The Government took his large estates in Lucknow, Sitapur, and Nainital. After the Raja died in London in 1973, his Indian son went to court. In 2005, the Supreme Court ruled for the son. The court held that after the owner died, the land was no longer enemy property. It passed to the Indian heir.
However, the Central Government stepped in to protect thousands of vested properties. The 2017 law overturned the 2005 judgment back to 1968. Parliament ruled that enemy land vests in the Custodian forever. The death of the owner does not change its status.
The law also added Section 18B to stop court cases:
In cases like Municipal Board of Sitapur and Sadik Ali Khan, courts held that revenue officers cannot mutate land once a vesting order exists. If your family faces contested title claims, consult our team at Will Dispute & Litigation Services.
6. Ancestral Title Clearance Playbook for Indian Co-Owners
How does this law affect Indian families today? Take a common case: A grandfather owned land in Punjab or West Bengal. He had three sons. Two sons stayed in India. One son moved to Lahore or Dhaka during Partition.
Today, the cousins in India want to sell the family land to a buyer. A title search reveals that one-third of the land stands in the name of the brother who moved abroad.
This creates serious problems:
- Bank Loan Rejections: Home buyers cannot get bank loans. Banks demand clear 100% title and signatures from every legal co-owner.
- The Invalid PoA Trap: Families often try to get a power of attorney from Pakistan or Bangladesh. Under Rule 28, this deed is illegal without prior RBI nod. Land offices will reject it.
- Risk of Custodian Action: If land officers learn that an undivided share belonged to a 1965 migrant, the Custodian can freeze the whole plot. This stops work for the Indian family.
To clear land title, Indian co-owners should follow this plan:
- Run a CEPI Land Audit: Search the Custodian Gazette database. If no vesting order exists, get a non-vesting certificate from the authorities.
- File a Revenue Partition Suit: File a partition case before the local revenue court. Indian owners must show their clear two-thirds share and ask for separate boundary marks.
- Separate Shares from the Custodian: If a share is enemy land, ask the court and Custodian to mark and separate that share. This leaves Indian owners free to sell their clean share.
- Claim Long-Term Possession Where Feasible: If family members held open, peaceful possession for over 30 years against private co-owners, use adverse possession rules under the Limitation Act.
7. Statutory Comparison: Standard NRI vs Rule 28 vs Enemy Property
The table below shows the key legal differences across four groups of overseas heirs:
| Category | Governing Law | Can Inherit Indian Land? | Prior RBI Nod Needed? | Sale & Repatriation Rights |
|---|---|---|---|---|
| Standard NRI / OCI (US, UK, UAE, Canada) | FEMA Rules 2019, Rule 24 & Sec 6(5) | Full Rights | No (General Permission) | Can sell freely. Send up to USD 1 Million per year through NRO accounts with Form 15CA and 15CB. |
| Non-Indian Foreign Citizen (e.g. EU, Japan) | FEMA Rules 2019, Rule 28 & Sec 6(5) | Allowed from Resident | No if Resident; Yes if NRI died | Can sell to Indian citizens. Repatriation allowed under standard RBI bank limits. |
| Citizen of Rule 28 Nation (Sri Lanka, Iran) | FEMA Rules 2019, Rule 28 Proviso | Barred without Approval | MANDATORY Prior Approval | Cannot sell, gift, or sign a power of attorney without written approval from RBI Central Office. |
| Enemy Subject / Heir (Pakistan, China 1965) | Enemy Property Act, 1968 (Amended 2017) | ABSOLUTELY BARRED | RBI Cannot Grant | Vests in CEPI. All private sales are void. Civil courts are barred under Section 18B. |
For cross-border families planning to send funds home, check our guide on NRI Inherited Property Sale & Repatriation Services.
8. Step-by-Step Title Mutation and Custodian Clearance Protocol
To clear land title when dealing with cross-border family trees, follow these six steps:
Check old revenue papers (Jamabandi or Khatauni) to trace all family branches and moved relatives.
Check central gazette lists to confirm whether the plot was ever listed as enemy property.
Check if any overseas relative holds citizenship of the eleven restricted nations under Rule 28.
Apply under state land revenue laws for formal division of resident Indian shares.
Get a revenue order marking boundaries, issue newspaper notices, and update local land records.
Ensure older family members leave their land to Indian heirs in a Will to stop future title clouds.
9. Essential Legal Clauses: Will Drafting and Exclusion of Heirs
To shield family land from cross-border legal freezes, use these tested clauses in your Will and sale deeds:
Note: Use this clause to ensure smooth land mutation without objections under FEMA Rule 28.
Note: A wise clause for land deals where title history dates back to pre-1947 or pre-1965 family roots.
To get ready-to-use cross-border estate forms, download our NRI Separate Indian Will Template.
10. Securing Partition and Clear Market Title via Registered Will
The best way to prevent property gridlock is good estate planning. If an Indian elder dies without a Will, intestate succession applies. In that case, personal law divides the land among all legal heirs. This can accidentally give shares to relatives in Pakistan, Bangladesh, or Sri Lanka.
Once those shares appear on paper, Rule 28 freezes the title. The Indian family cannot sell the land without hard-to-get RBI approvals or years of litigation.
A registered Will solves this problem. Under Indian law, a valid Will completely overrides intestate rules. An Indian property owner has the legal right to leave their land only to resident Indian family members. This lets the property pass smoothly without triggering Rule 28 or Custodian notices.
Making a strong Will takes only minutes. You can draft your legal Will online right now using our easy platform at WillDrafting.in. If you need advocate guidance on cross-border estate plans, title audits, or revenue partition cases, book a talk with our senior legal team at AMA Legal Solutions.
