This study provides new insights on the formation of the nanocrystallites of phase pure BiFeO3 prepared using sol–gel method with tartaric acid as the fuel as comprehended based on the local structure and magnetic hyperfine fields at Fe sites using Mossbauer spectroscopy. Important steps involved in the growth of the nanocrystallites of BiFeO3 in the sol–gel reaction are elucidated in a detailed manner in this study for the first time. Three important stages with the second stage marked by the formation of as high as 75% of nanocrystallites of BiFeO3 occurring over a narrow calcination temperature interval 700–723 K have been deduced in this study. Variation of hyperfine parameters with calcination temperature of the dried precursor gel leading to an increase in the mean size of crystallites of BiFeO3 has been deduced. The nanoparticles of BiFeO3 are deduced to exhibit weak ferromagnetic property in addition to being strongly ferroelectric based on the magnetization and P-E loop studies. Consequently an appreciable magneto electric coupling effect in terms of significant changes in P-E loop variation with the application of external magnetic field is elucidated in this study, which is comprehended based on the defects associated with BiFeO3 nanoparticles.