Section 31 of FERA governs matters regarding permission for purchase of immovable properties by NRIs and Foreign Citizen of Indian or non-Indian origin and investments from local funds or funds remitted from abroad.

Foreign Citizen (regardless of residence) are either (a) of Indian Origin, or (b) of Non-Indian Origin. For the purpose of FERA , a Foreign Citizen is of Indian  Origin if (i) he held an Indian Passport at any time, or (ii) he or his father or paternal grandfather was/were a citizen (s) of India as per the Constitution of India or the Citizenship Act, 1955.

However, citizens of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka and Nepal are excluded from the definition of Indian Origin.