Foreigner's right in property
vineet advocate
(Querist) 01 November 2011
This query is : Resolved
A foreigner(German) has got allotted a flat in a residential complex. but according to property law sale deed can not be made in the name of a foreigner. In such case he and the builder is willing to transfer it in the name of an Indian company of which such foreign citizen is a director.
Suggest appropriate procedure and mode.
Advocate Rajkumarlaxman
(Expert) 01 November 2011
FORM/REGISTER A COMPANY UNDER COMPANY ACT AND THEN TRANSFER THE SAME IN THE NAME OF THE DIRECTOR WHO IS THE FOREIGNER
Raj Kumar Makkad
(Expert) 01 November 2011
Such allottee should move an application to to the company to transfer the property in the name of company instead of him as he and erroneously applied in his name instead of his company which had made payment.
Shailesh Kumar Shah
(Expert) 01 November 2011
Allotment should be cancelled. and new allotment/sale deed can be executed in favour of the company.
The RBI Guidelines says that "A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India unless such property is acquired by way of inheritance from a person who was resident in India.However, he / she can acquire or transfer immovable property in India, on lease, not exceeding five years. In such cases, there is no requirement of taking any permission of /or reporting to the Reserve Bank."
Sankaranarayanan
(Expert) 01 November 2011
i agreed with mr shah,s view of suggestion.
ajay sethi
(Expert) 01 November 2011
agree with shailesh shah/mr makkad
J K Agrawal
(Expert) 02 November 2011
Shailesh JI
Thanks for good and new knowledge for me.
Please mention which act rule regulation I am to go through so as to understand the restrictions properly.
vineet advocate
(Querist) 03 November 2011
Here I am willing to add some more supplementary questions-
1. if any legal paper will be made for the said purpoose then Stamp paper will be used, if yes then according to law which countary ?
2.If agreement will be made for cancellation or transfer then it will have to made where ?
Shailesh Kumar Shah
(Expert) 03 November 2011
Shri J.K. Agrawal,
Respected Sir,
you are most welcome !
please go through this website:-
http://www.rbi.org.in/scripts/faqview.aspx?id=33#F
Thanks
with Regards,
Shailesh Kumar Shah
(Expert) 03 November 2011
Dear Mr. Vineet
Pleas elaborate your query.
are you purchased stamp paper?
vineet advocate
(Querist) 05 November 2011
Sailesh Ji
Actually a foreigner got a unit boked in a real ex=state company .Now he is willing to get it transferred in the name of an India Company of which he is a director.
The query is whether it is possible ?
If yes then stamp papers shuold be used of which country ?
Vineet 09968742373
Shailesh Kumar Shah
(Expert) 05 November 2011
Stamp duty would be payable according to Indian Stamp Act on transfer of property in INDIA.
I suggest you that get cancel the allotment and fresh allotment/sale deed in favour of company.
prabhakar singh
(Expert) 05 November 2011
But Mr. Shah!
When yesterday you opine that only lease not extending for 5 years is the permissible option in view of the RBI guidelines or circular then how today you are advising him to go for a SALE DEED?????
prabhakar singh
(Expert) 05 November 2011
More over stamp duty would be payable as per UP stamp duty law since the property is in UP.
Shailesh Kumar Shah
(Expert) 05 November 2011
Shri Prabhakar Singh
Respected Sir,
My suggestion for 'Company' not 'foreigner'. That rules on 'foreigner' only.
prabhakar singh
(Expert) 05 November 2011
@@Mr,Shah!
Then i am forming an opinion based on your information that a foreigner can not buy land in india only he can enter into a lease not extending for a period 5 years but any company formed in india as subsidiary or otherwise can buy land in india even if director of that comany are foreigners.
IF I HAVE NOT UNDERSTOOD PROPERLY PLEASE POINT OUT!
ALTHOUGH ONE THING IS ALREADY KNOWN TO ME
THAT UNDER UPZA &LR ACT A COMPANY CAN NOT BUY ANY AGRICULTURAL LAND.
The word "COMPANY" IN ABOVE sentence may kindly be read as" foreign national".
THIS CASE PERTAINS TO GHAZIABAD,HENCE MY ADVISE TO author : vineet advocate IS THAT
IF IT IS AGRICULTURAL LAND THEN BEFORE BUYING ITS NATURE SHOULD BE GOT CHANGED U/S143 OF UPZA&LR BY SDM,ONLY THERE AFTER PURCHASE SHOULD BE MADE.
Shailesh Kumar Shah
(Expert) 06 November 2011
Shri Prabhakar Singh
i shocked, when you written that "ALTHOUGH ONE THING IS ALREADY KNOWN TO ME THAT UNDER UPZA &LR ACT A COMPANY CAN NOT BUY ANY AGRICULTURAL LAND."
I humbly totally disagree with above.
you are requested to please clarify.
Thanks
with Regards,
prabhakar singh
(Expert) 06 November 2011
@ Mr.Shah!
you are rightly shocked.
I am also shocked on my silly mistake.
I must have been laboring some where else as I simply wanted to convey about the provision contained in 154A of UP ZA & LR which prohibit a foreign national from buying and a bhumidhar from selling Bhumidhari rights and declares such a sale void if made. But what absenteeism labored my mind I can not say.
ANY WAY MY SENTENCE "ALTHOUGH ONE THING IS ALREADY KNOWN TO ME THAT UNDER UPZA &LR ACT A COMPANY CAN NOT BUY ANY AGRICULTURAL LAND."
thE WORD "COMPANY" STANDS DELETED AND IN ITS PLACE WORD "FOREIGN NATIONAL"BE SUBSTITUTED SO AS TO NOW READ IT AS FOLLOWS::
"ALTHOUGH ONE THING IS ALREADY KNOWN TO ME THAT UNDER UPZA &LR ACT A $FOREIGN NATIONAL$ CAN NOT BUY ANY AGRICULTURAL LAND."
Shailesh Kumar Shah
(Expert) 06 November 2011
Shri Prabhakar Singh
THANKS FOR REPLY SIR. NOW, I AGREE WITH THIS.
I ALSO WOULD LIKE TO SAY FURTHER THAT SINCE IT IS FLAT IN RESIDENTIAL COMPLEX THEN NO NEED U/S 143.
prabhakar singh
(Expert) 06 November 2011
@Mr.Shah!
That is also true,i find on your reminder.I look myself to be grossly negligent in attending this query.
I realize it and feel sorry for inconvenience caused to you as well as any body else due to my this mistake.
Shailesh Kumar Shah
(Expert) 06 November 2011
Shri Prabhakar Singh
Respected Sir,
There is no need of sorry. I could also made mistake. Please Never say this again. I am self learner. I have learned lots of law knowledge from you.
Thanks
With Regards,
