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Legal report ?
Varification of property doucments by an advocate
survey ?
A drawing or map showing the precise legal boundaries of a
property, the location of improvements, easements, rights
of way, encroachments, and other physical features
Can foreign citizens of Indian origin acquire commercial
properties in India?
Yes. Under the general permission granted by Reserve Bank
properties other than agricultural land/farm house/plantation
property can be acquired by foreign citizens of Indian origin
provided the purchase consideration is met either out of inward
remittances in foreign exchange through normal banking channels
or out of funds from the purchaser's NRE/FCNR accounts maintained
with banks in India and a declaration is submitted to the
Central Office of Reserve Bank in from IPI 7 within period
of 90 days from the date of purchase of the property/final
payment of purchase consideration
Do foreign citizens of Indian origin require permission
of Reserve Bank to purchase immovable property in India for
their residential use?
Yes. However, Reserve Bank has granted general permission
to foreign citizens of Indian origin whether resident in India
or abroad, to purchase immovable property in India for their
bona fide residential purpose. They are therefore, not required
to obtain separate permission of Reserve Bank.
Who is a non-resident Indian (NRI)?
An Indian Citizen who stays abroad for employment / carrying
on business or vocation outside India or stays abroad under
circumstances indicating an intention for an uncertain duration
of stay abroad is a non-resident. (Persons posted in U.N.
organisation and officials deputed abroad by Central/State
Governments and Public Sector undertakings on temporary assignments
are also treated as non- residents). Non-resident foreign
citizens of Indian Origin are treated on par with non-resident
Indian citizens (NRIs).
Purchase
of Immovable Property in India by Foreign Citizens of Non-Indian
origin/Foreign Companies
Foreign
citizens of Non-Indian origin (whether resident in India or
not) and foreign companies including trusts, societies and
associations incorporated/ registered abroad will be permitted
by Reserve Bank, on application, to acquire immovable property
in India, provided the following conditions are satisfied.
The
property to be purchased is for residential use only.
The consideration for purchase of the property is met out
of foreign exchange remitted from abroad in any convertible
currency through normal banking channels
Income accruing by way of rent from the property purchased,
or the sale proceeds of such property/income arising out of
investment of such sale proceeds at any future date shall
be credited only to the Ordinary Non-resident Rupee (NRO)
account of the non-resident purchaser.
Applications for necessary permission for purchase of immovable
property in India should be made in form IPI 1 together with
the documents indicated therein to the Chief General Manager,
Exchange Control Department, (Foreign Investment Division-III),
Reserve Bank of India, Central Office, Mumbai 400 001.
Who is a person of Indian Origin ?
For the purpose of availing of the facilities of opening
and maintenance of bank accounts and investments in shares/securities
in India : A foreign citizen (other than a citizen of Pakistan
or Bangladesh is deemed to be of Indian origin, if, (i) he,
At any time, held an Indian passport or
(ii) he or either of his parents or any of his grand parents
was a citizen by virtue of the constitution of India or citizenship
act, 1995 (57 of 1955).
Note: A spouse (not being a citizen of Pakistan or Bangladesh)
of an Indian origin is also treated as a person of Indian
origin for the above purposes.
B. For investments in immovable properties:
A foreign citizen other than a citizen of Pakistan, Bangladesh,
Sri Lanka or Nepal), Is deemed to be of Indian origin if,
i) he, At any time, held an Indian passport or
(ii) he or either of his parents or any of his grand parents
was a citizen by virtue of the constitution of India or citizenship
act, 1995 (57 of 1955).
Foreign Exchange Management Act (FEMA) ?
The Parliament has enacted the Foreign Exchange Management
Act, 1999 to replace the Foreign Exchange Regulation Act,
1973. This Act came into force on the 1st day of June 2000.
The object of the Act is to consolidate and amend the law
relating to foreign exchange with the objective of facilitating
external trade and payments and for promoting the orderly
development and maintenance of foreign exchange market in
India.
This Act extends to the whole of India and will also apply
to all branches, offices and agencies outside India owned
or controlled by a person resident in India. It will also
be applicable to any contravention committed outside India
by any person to whom this Act is applicable
What is the FIPB?
FIPB is a competent body to consider and recommend Foreign
Direct Investment (FDI), which do not come under the automatic
route. The FIPB has been reconstituted as under :
1) Secretary, Department of Economic Affairs Chairman 2)
Secretary, Department of Industrial Policy & Promotion Member
3) Secretary, Department of Commerce Member 4) Secretary (Economic
Relations), Ministry of External Affairs Member The Board
would be able to co-opt Secretaries to the Government of India
and other top officials of financial institutions , banks
and professional experts of industry and commerce, as and
when necessary
Do non resident indian nationals require permission of
Reserve Bank to acquire residential/Commercial property in
India?
No Permission is required by non resident indian
nationals to acquire immovable property in India.
Are Foreign Nationals of Indian origin allowed to purchase
immovable property in India?
Yes, Foreign nationals of Indian origin, whether resident
in India or abroad, have been granted general permission to
purchase immovable property in India.
What should be the method of payment for purchasing residential
immovable property in India by Foreign Nationals of Indian
origin under the general permission?
The purchase consideration should be met either our of inward
remittances in foreign exchange through normal banking channels
or out of funds from NRE/FCNR accounts maintained with banks
in India.
Non- resident Indians are staying abroad can the property
be purchased through the agent or through the power of attorney?
The non resident Indians who are staying abroad may enter
into an agreement through their relatives and/or by executing
the Power of Attorney in their favour as it is not possible
for them to be present for completing the formalities of purchase(negotiating
with the builder or Developer, drafting and signing of agreements,
taking possessions, etc) These formalities can be completed
through some known person who can be given the Power of Attorney
for this purpose. Power of Attorney should be executed on
the stamp paper before the proper authorities in foreign countries.
Power of Attorney cannot be drafted on the stamp paper bought
in India.
Are there any formalities to be completed by foreign nationals
of Indian origin for purchasing residential immovable property
in India?
They are required to file a declaration in form IPI 7 with
the Central Office of Reserve Bank at Bombay within a period
of 90 days from the date of puchase of Immovable property.
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