Q.
Do Non-Resident Indian citizens require permission of Reserve Bank to acquire
residential/commercial property in India?
Q.
Do foreign citizens of Indian origin require permission of Reserve Bank to
purchase immovable property in India for their residential use?
A.
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 permission of Reserve Bank.
Q.
In what manner the purchase consideration for the residential immovable
property should be paid by foreign citizens of Indian origin under the general
permission?
A.
The purchase consideration should be met either out of inward remittances in
foreign exchange through normal banking channels or out of funds from NRE/FCNR
accounts maintained with bank in India.
Q.
What are the formalities required to be completed by foreign citizens of
Indian origin for purchasing residential immovable property in India under the
general permission.
A.
They are required to file a declaration in form IPI 7 with the Central Office
of Reserve Bank at Mumbai within a period of 90 days from the date of purchase
of immovable property or final payment of purchase consideration along with a
certified copy of the document evidencing the transaction and bank certificate
regarding the consideration paid.
Q.
Can such property be sold without the permission of Reserve Bank?
A.
Yes. Reserve Bank has granted general permission for sale of such property.
However, where the property is purchased by another foreign citizen of Indian
origin, funds towards the purchase consideration should either be remitted to
India or paid out of balances in NRE/FCNR accounts.
Q.
Can Immovable property held in India, be transferred by way of gift to
relatives/registered charitable trusts/Organisations in India?
A.
Yes. General permission has been granted by Reserve Bank to non-resident
persons (foreign citizens) of Indian origin to transfer by way of gift the
immovable property held by them in India to relatives and charitable
trusts/Organizations subject to the condition that the provisions of any other
law, including Foreign Contribution (Regulation) Act, 1976, as applicable are
duly complied with.
Q.
Can they dispose of such properties?
Q. Can
the properties (residential/commercial) be given on rent if not required for
immediate use?
A.
Yes. Reserve Bank has granted general permission for letting out any immovable
property in India. The rental income or proceeds of any investment of such
income are eligible for repatriation.
Regarding
citizens of other Nations (i.e. other than NRIs), they also can buy immovable
property for residential purpose with the permission of Reserve Bank of India.
Only thing is that they cannot repatriate the income like rent etc., or sale
proceeds of such properties. For NRIs the procedure is just simple. For
non-NRIs the procedure will take little more time.
