Whether a tenancy right can be bequeathed to a Non resident Indian?
Jagdish Shah
(Querist) 16 November 2010
This query is : Resolved
The query is regarding transfer by will of a tenancy right in a residential flat. An individual ‘X’ is living in a flat in Mumbai with his wife. The said flat is tenanted to him since more than 35 years. They only have a daughter in the family (‘Y’), who is the US citizen and not living in India. She is married to an NRI, also a US citizen. On account of the advancing age, ‘X’ desires that after the death of both the parents (‘X’ and his wife), the tenanted flat should go to their daughter ‘Y’ and she should become the lawful tenant of a flat presently occupied by them. For the purpose – ‘X’ proposes to draw a Will where under he would bequeath the tenancy right in a residential flat occupied by him to his daughter ‘Y’.
The querist wants to know whether in the light of the circumstances described above: (a) whether ‘X’ can transfer by a Will his tenancy right in a residential flat to his daughter, who is NRI US citizen not living with him in India; (b) More particularly, could there be any objection under the Maharashtra Rent Control Act? Whether a tenancy right can be bequeathed under a Will to a person not living with him (though a close relative)? (c) Since it involves transfer of a tenancy right in immovable property to a foreign citizen – could there be any issue under the Foreign Exchange Management Act (FEMA)? Would it require RBI’s approval?
Jagdish Shah
(Querist) 18 November 2010
Thanks for taking interest in my query. But would it be possible for you to elaborate the reply with suitable reference to relevant provisions of the law or case laws on which reliance could be placed.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 17 November 2010
