Can
a foreign national of non-Indian origin resident outside India purchase immovable property in India?
No. A foreign national of non-Indian origin, resident
outside India cannot purchase any immovable property in India. But, he/she may
take residential accommodation on lease provided the period of lease does not
exceed five years. In such cases, there is no requirement of taking any
permission of or reporting to Reserve Bank
Can
a foreign national who is a person resident in India purchase immovable
property in India?
Yes. But the person concerned would have to obtain
approvals, and fulfil the requirements, if any, prescribed by other
authorities, such as the concerned State Government, etc. However, a foreign
national resident in India who is a citizen of Pakistan, Bangladesh, Sri Lanka,
Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of
Reserve Bank. Such requests are considered by Reserve Bank in consultation with
the Government of India.
Can
an office of a foreign company purchase immovable property in India?
Yes - A foreign company which has established a Branch
Office or other place of business in India, in accordance with FERA / FEMA
regulations, can acquire any immovable property in India, which is necessary
for or incidental to carrying on such activity. The payment for acquiring such
a property should be made by way of foreign inward remittance through proper
banking channel.
A declaration in the prescribed form should be filed with
Reserve Bank within ninety days from the date of acquiring the property. Such a
property can also be mortgaged with an authorised dealer as a security for
other borrowings. On winding up of the business, the sale proceeds of such
property can be repatriated only with the prior approval of the Reserve Bank.
Further, acquisition of immovable property by entities who had set up Branch Offices
in India and incorporated in Pakistan, Bangladesh, Sri Lanka, Afghanistan,
China, Iran, Nepal and Bhutan would require prior approval of Reserve Bank to
acquire such immovable property. However, if the foreign company has
established a Liaison Office, it cannot acquire immovable property. In such
cases, Liaison Offices can take property
by way of lease not exceeding 5 years.
Can
Foreign Embassies / Diplomats / Consulate General purchase / sell immovable
property in India ?
Yes - Foreign Embassies / Diplomats / Consulate Generals
can purchase and sell any immovable property other than agricultural land /
plantation property / farm house in India with prior clearance from the
Government of India, Ministry of External Affairs. The payment should be made
by foreign inward remittance through normal banking channel.
If
a foreign national is a person resident in India as per the provisions of Section 2(v) (i)B of the FEMA, 1999, does he require approval of Reserve Bank
to purchase any immovable property in India ?
A foreign national resident in India does not require
approval from Reserve Bank from FEMA angle, but approvals if any required in
terms of regulations prescribed by other authorities such as the concerned
State Government etc. will have to be obtained by him / her. However, a foreign
national resident in India who is a citizen of Pakistan, Bangladesh, Sri Lanka,
Afghanistan, China, Iran, Nepal and Bhutan requires specific prior approval of
Reserve Bank.
Can
foreign nationals of non-Indian origin resident in India or outside India who
had earlier acquired immovable property under FERA with specific approval of
Reserve Bank continue to hold the same? Can they transfer such property?
Yes, they may continue to hold the immovable property.
However, they can transfer the property only with the prior approval of Reserve
Bank.
Can
residential/commercial property be mortgaged by a foreign national of
non-Indian origin ?
A foreign national of non-Indian origin can mortgage only
with prior approval of Reserve Bank and a foreign company which has established
a Branch Office or other Place of business in accordance with FERA/FEMA regulations has general
permission to mortgage the property with an authorized dealer in India.
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