Can PIO settled in India, buy agricultural land ?
Querist :
Anonymous
(Querist) 08 April 2010
This query is : Resolved
Can a PIO ( Person of Indian Origin),
who has permenantly settled in India,
buy Agricutural Land in India ?
A V Vishal
(Expert) 08 April 2010
Acquiring immovable property in India by persons resident outside India is regulated in terms of Section 6(3) (i) of the Foreign Exchange Management Act (FEMA), 1999 as well as by the regulations contained in Notification issued by RBI viz Notification No FEMA. 21/2000-RB dated May 3, 2000, as amended from time to time. The persons resident outside India are categorized as Non- Resident Indians (NRIs) or a foreign national of Indian Origin (PIO) or a foreign national of non-Indian origin. A person resident in India who is not a citizen of India is also covered by the relevant Notifications.
2. Statutorily, under the provisions of Section 6(5) of FEMA 1999, a person resident outside India can hold, own, transfer or invest in Indian currency, security or any immovable property situated in India if such currency, security or property was acquired, held or owned by such person when he was a resident in India or inherited from a person who was a resident in India.
3. The regulations under the Notification No FEMA 21 dated May 3, 2000 permit a NRI or a PIO to acquire immovable property in India other than agricultural land or, plantation property or farm house.
Raj Kumar Makkad
(Expert) 08 April 2010
Nothing to add in the detailed reply of vishal.
Parthasarathi Loganathan
(Expert) 08 April 2010
Can Vishal quote the recent case laws on the matter for the information of the author?
Querist :
Anonymous
(Querist) 08 April 2010
Can a PIO ( Person of Indian Origin),
RESIDENT IN INDIA (permenantly settled, working with family in India),
buy Agricutural Land in India ?
I could find only "PIO Resident OUTSIDE India) in this Notification No FEMA. 21/2000-RB dated May 3, 2000
http://rbi.org.in/scripts/NotificationUser.aspx?Id=175&Mode=0
A V Vishal
(Expert) 08 April 2010
The status of the PIO doesn't change despite the fact he is residing in India or outside. The residential status is for tax matters, unless you relinquish your PIO status and acquire Indian citizenship you continue to be a PIO for all practical purposes, further in most of the Indian states there is a ban on sale of agricultural lands to non agriculturists.
Querist :
Anonymous
(Querist) 09 April 2010
With all due respect Mr A.V.Vishal:
"A person resident in India who is not a citizen of India is also covered by the relevant Notifications." this is from FEMA FAQ (http://rbi.org.in/scripts/FAQView.aspx?Id=33)
Correct me if I am wrong, FAQ cannot be used as a base, it is the Act that will prevail.
As per RBI "Notification No.FEMA 21 /2000-RB dated 3rd May 2000" (http://rbi.org.in/scripts/NotificationUser.aspx?Id=175&Mode=0)
Point 4, states :
"A person of Indian origin resident outside India may"
Here there are 2 key definations used:
I) "Person of Indian Origin" = PIO
PIO is defined in the same Notification
Point 2(c).
II) "Resident OUTSIDE India"
a) Here again the word OUTSIDE is important.
If we read Point 4(a) :
"A person of Indian origin resident OUTSIDE India may -
acquire any immovable property other than agricultural land/farm house/ plantation property in India by purchase, from out of (i) funds received in India by way of inward remittance from any place outside India or (ii) funds held in any non-resident account maintained in accordance with the provisions of the Act and the regulations made by the Reserve Bank under the Act"
Means : Above point does NOT apply to PIO Resident IN India.
http://www.r2iclubforums.com/forums/showthread.php/6477-FEMA-Resident-Definition
FERA - was hard linked to Citizenship of the individual
FEMA - Refers Citizenship only for Bhutan/Nepal/China/Pakistan/Bangladesh/Afganistan/Iran/Sri Lanka
