Acquisition and Transfer of Immoveable property in India. A person resident outside India who is a citizen of India (NRI) can acquire by way of purchase, any immoveable property in India other than agricultural land/plantation/farm house. He can transfer any immoveable property other than agricultural or plantation property or farm house to:
a) A person resident outside India who is a citizen of India or (b) A person of Indian origin resident India or (c) A person resident in India.
He may transfer agricultural land/plantation property/farm house acquired by way of inheritance, only to Indian citizens permanents residing in India.
Payment for acquisition of property can be made out of:
i. Funds received in India through normal banking channels by way of inward remittance from any place of India or
ii.Funds held in any non-resident account maintained in accordance with the provisions of the Foreign Exchange Management Act, 1999 and the regulations made by Reserve Bank of India from time to time.
Such payment cannot be made either by traveller’s cheque or by foreign currency notes or by other mode than those specially mentioned above. A person resident outside India who is a person of India Origin (PIO). By way of inheritance from any a person resident in India or ma person resident outside India who had acquired such property in accordance with the provisions of the foreign exchange law in force or FEMA regulations at the time of acquisition of the property. A PIO may transfer any immoveable property other than agricultural land/Plantation property/farm house in India.
a) By way of sale to a person resident in India. (b) By way of gift to a person resident in India or a Non resident Indian or a PIO.
A PIO may transfer agricultural land/Plantation property/farm house in India by way of sale or gift to person resident in India who is a citizen of India. Purchase/Sale of Immoveable property by Foreign Embassies/Diplomats/Consulate General Foreign Embassy/Consulate as well as Diplomatic personnel in India are allowed to purchase/sell immoveable property in India other than agricultural land/plantation property/farm house provided (i) clearance from Government of India, Ministry of External Affairs is obtained for such purchase/sale, and (ii) the consideration for acquisition of immoveable property in India is paid out of funds remitted from abroad through banking channel. Acquisition of immoveable property for carrying on a permitted activity A branch, office or other place of business (excluding a liaison office) I India of a foreign company established with requisite approvals wherever necessary, is eligible to acquire immoveable property in India which is necessary for or incidental t5o carrying on such activity provided that all applicable laws, rules, regulations or directions in force are duly complied with. The entity/concerned person is required to file a declaration in the form IPI with Reserve Bank, within ninety days from the date of such acquisition. The non-resident is eligible to transfer by way of mortgage the said immoveable property to an AD Bank as a security for any borrowing. Repatriation of sale proceeds in the event of sale of immoveable property other than agricultural land/farm house/plantation property in India by NRI/PIO, the authorized dealer will allow repatriation of sale proceeds outside India provided. i) The immovable property was acquired by the seller in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the FEMA Regulations, (ii) The amount to be repatriated does not exceed (a) the amount paid for acquisition of the immovable property in foreign exchange received through normal currency equivalent as on the date of payment, of the amount paid where such payment was made from the funds held in Non-Resident External account for acquisition of the property. (iii) In the case if residential property, the repatriation of sale proceeds is restricted to not more than two such properties. In the case of sale of immoveable property purchased out of Rupee funds, Ads may allow the facility of repatriation of funds out of balances held by NRIs/PIO in their Non-resident Rupees (NRO) accounts upto US$ 1 million per financial year subject to production of undertaking by remitter and a certificate from the Chartered Accountant in the formats prescribed by the CBDT.
Prior permission for acquisition or transfer of immoveable property in India by citizen of certain countries No person being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan shall acquire or transfer immoveable property in India, other than lease, not exceeding five years without prior permission of Reserve Bank. Foreign nationals of non Indian origin resident outside India are not permitted to acquire any immoveable property in India unless such property is acquired by way of inheritance from a person who was resident in India. Foreign Nationals of non Indian origin who have acquired immoveable property in India by way of inheritance with the specific approval of RBI cannot transfer such property without prior permission of RBI.
WHO CAN PURCHASE IMMOVEABLE PROPERTY IN INDIA
Under the general permission available, the following categories can freely purchase immoveable property in India. (i) Non-Resident Indian (NRI) that is citizen of India resident outside India (ii) Person of Indian Origin (PIO) – that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who 1. At any time, held Indian passport, or 2. Who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955). The general permission however, covers only purchase of residential and commercial property and not for purchase of agricultural land/plantation property/farm house in India.
The Real Estate India provides Following NRI Services for those who would like to Invest/ buy a property in India as NRI rules and regulations.
- Determining your budgets, requirement and suitable location.
- Expert help and advising in identifying the appropriate location.
- Understanding your budgets and getting you pre-approved through Foreign Banks as per your choice of bank.
- Leasing of the Property as required to Multinational Companies.
- Before the purchasing the land or property, entering in to joint ventures, it better to verify all the documents and take legal opinion from Attorney.
When you need a legal assistance for verification of documents and to obtain a legal opinion before purchasing the immoveable properties or entering joint ventures and to protect your rights Aequitasjuris Real Estate Legal Services is here to help.