Any person of Indian origin (Indian Citizen) living abroad for purpose of education, employment or carrying on business etc. for an long duration abroad is a non-resident Indian. Non-residents foreign citizens of Indian Origin are also treated on par with non-resident Indian Citizens (NRI’s) for purpose of certain facilities.
You would need to check with your Charted Accountant on this and based on the current rule of RBI from time to time.
There is no restriction or conditions on payment on buying a property. The normal banking channels are applicable. Remittance from abroad through normal banking channels NRO accounts in India (Deposits in dollars opened by residents or non-residents) NRE (Non Resident External Rupee accounts) FCNR (Foreign Currency Non-Resident accounts) in India.
FEMA stipulates that before making a purchase, special form called the IPI 7 needs to be filed with the central office of the RBI along with the title deed or any other certified copy of the document proving that the NRI has executed an agreement to purchase the property within the country within 90 days of the purchase of property along with bank certificate stating consideration paid for the purchase.
Reserve Bank has granted general permission to foreign citizens of Indian Origin, whether resident in India or Abroad, to purchase immovable property in India for their bonafide residential purpose. They are, therefore, not required to obtain separate permission of Reserve Bank.
FEMA says no matter what the proceeds of the sale may be, the amount for repatriation should not exceed the amount paid for acquisition of the immovable property in foreign exchange received.
The Reserve Bank has granted general permission to certain financial institutions, like HDFC, LIC Housing Finance Ltd., to grant housing loans to non-resident Indian nationals for acquisition of houses/flats subject to certain conditions.
Source: Property Matters Made Easy, India Properties Institute of Real Estate.