Property Law
Raja Sundarraman
(Querist) 11 August 2008
This query is : Resolved
Respected Learned Friends, I invite your valuable opinions as to a foriegner purchase purchase land in India. Is the Right to propert enshrined in our Constitution made avilable to a citizens of a foriegn country who was formerly a citizen of India?
Srinivas.B.S.S.T
(Expert) 11 August 2008
Non-Indian citizens can purchase land in India but they have to obtain the permission of RBI.
Manish Singh
(Expert) 12 August 2008
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.
Statutorily, 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.
The regulations permit a NRI or a PIO to acquire immovable property in India other than agricultural land or, plantation property or farm house. Further, foreign companies who have been permitted to open an office in India are also allowed to acquire any immovable property in India, which is necessary for or incidental to carrying on such activity. This stipulation is not available to entities which are permitted to open liaison offices in India.
The restrictions on acquiring immovable property in India by a person resident outside India would not apply where the immovable property is proposed to be acquired by way of a lease for a period not exceeding 5 years or where a person is deemed to be resident in India. In order to be deemed to be a person resident in India, from FEMA angle, the person would need to comply with the criterion for residency as defined in FEMA . However, citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan cannot acquire or transfer immovable property in India, (other than on lease, not exceeding five years) without prior permission of the Reserve Bank.
NRIs/PIO are allowed to repatriate an amount up to USD one million, per financial year (April-March), out of the balances held in the NRO account subject to tax compliance. This amount includes sale proceeds of assets acquired by way of inheritance or settlement.
You can contact at the followinf address for assistance:
Chief General Manager-in-Charge,
Foreign Exchange Department
Foreign Investment Division,
Reserve Bank of India,
Central Office
Mumbai- 400 001.
arunprakaash.m.
(Expert) 12 August 2008
an NRI not foreigner can purchase immovable property except agrecultural properties within the framework of RBI circulars under FEMA act in this reagrd.
Manish Singh
(Expert) 13 August 2008
mR. aRUNPRAKSH,
A foreigner can acquire an immovable property in India complying with the regulations and rules of FEMA and RBI.
One of the conditions is that he can acquire an immovable property if the money is earned in India or the property has been inherited by him and from the proceeds of which he can aquire an immovable property.
Please go through my explanation above in detail or otherwise consult at the address provided above for clarity on it.
