We have carried out ab-initio calculations of local structure of Mn and Ni in Mn2Ni1.5In0.5 alloy with different site occupancies in order to understand the similarities in martensitic and magnetic properties of Mn2Ni1+xIn1−x and Ni2Mn1 + xIn1−x alloys. Our results show that in Mn2Ni1+xIn1−x alloys there is a strong possibility of Mn atoms occupying all the three, X, Y and Z sites of X2YZ Heusler structure while Ni atoms preferentially occupy the X sites. Such a site occupancy disorder of Mn atoms is in addition to a local structural disorder due to size differences between Mn and In atoms which is also present in Ni2Mn1+xIn1−x alloys. Further, a comparison of the calculations with experimental XAFS at the Mn and Ni K edges in Mn2−yNi1.6+yIn0.4 (−0.08 ≤ y ≤ 0.08) indicate a strong connection between martensitic transformation and occupancy of Z sites by Mn atoms.