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A person resident outside India who is a “citizen of India” or a “Person of Indian origin” can only acquire immovable property in India i.e. a foreign national of non Indian origin who is not a resident in India is nor permitted to acquire immovable property in India.
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Primarily, for any person resident outside India, Foreign Exchange Management Act, 1999, is applicable for acquisition of immovable property in India. However since India has a federal structure of governance so local laws governing acquisition of property are also applicable. The local laws generally does not make any distinction between resident and non resident but they put restriction in several states regarding the quantum of immovable property that can be purchased & also deal with laws regulating registration of immovable property & stamp duty required to be paid on registration.
A person resident outside India is a person who is not a person resident in India. A person resident in India means a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year (April-March) and who has come to or stays in India either for taking up employment, carrying on business or vocation in India or for any other purpose, that would indicate his intention to stay in India for an uncertain period. In other words, to be treated as ‘a person resident in India’, a person has not only to satisfy the condition of the period of stay (being more than 18 days during the course of the preceding financial year) but has also to comply with the condition of the purpose/intention of stay.
For the purpose of acquisition and transfer of immovable property in India, a PIO means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who (i) at any time, held Indian passport; or (ii) who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).
Any type of immovable property other than agricultural/plantation/farm house. However a “Person of Indian origin” may acquire any immovable property including agricultural /plantation/farm house from a person resident in India or a person resident outside India through inheritance, who had acquired such property in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him.
No specific permission or any documents required to be submitted to Reserve Bank of India for acquisition of such property.
Property can be acquired by way of purchase or gift or inheritance.
For purchase of property, the funds should come from abroad or by debit to any non-resident account, viz. NRE/FCNR(B)/NRO account, if any, maintained in India by the investor.
Yes, refund of application/ earnest money / purchase consideration be made by house building agencies/ seller on account of non allotment of flat/plot/ cancellation of bookings / deals for purchase of residential / commercial property, together with interest, if any ( net of income tax payable thereon), provided the original payment was made out of NRE/ FCNR account of the account holder or remittance from outside India through normal banking channels and the authorized dealer is satisfied about the genuineness of the transaction.
Yes, No person being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan shall acquire or transfer immovable property in India, other than on lease, not exceeding five years, without prior permission of the Reserve Bank.
A foreign national of non Indian origin, resident outside India who has a branch, office or other place of business (excluding a liaison office) for carrying on his business activity with requisite approvals in India may acquire an immovable property in India which is necessary for or incidental to carrying on such activity provided that all applicable laws, rules, regulations or directions for the time being in force are duly complied with. The entity/concerned person would have to file a declaration in Form IPI with the Reserve Bank, within ninety days from the date of such acquisition. Moreover Foreign Embassy/Diplomat/Consulate General has been allowed to purchase/ sell immovable property in India other than agricultural land/ plantation property / farm house provided (i) clearance from Government of India, Ministry of External Affairs is obtained for such purchase/ sale, and (ii) the consideration for acquisition of immovable property in India is paid out of funds remitted from abroad through banking channel.
Yes, a foreign national of non Indian origin, who is resident in India may also acquire any immovable property in India without any specific permission from Reserve Bank of India.
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Belani Group of Companies
