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Regulation 10 - Prohibition on transfer of immovable property in India - Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2018Extract 10. Prohibition on transfer of immovable property in India:- Save as otherwise provided in the Act or Regulations, no person resident outside India shall transfer any immovable property in India:- Provided that (i) The Reserve Bank may, for sufficient reasons, permit the transfer, subject to such conditions as may be considered necessary. (ii) A bank which is an authorised dealer may, subject to the directions issued by the Reserve Bank in this behalf, permit a person resident in India or on behalf of such person to create charge on his immovable property in India in favour an overseas lender or security trustee, to secure an external commercial borrowing availed under the provisions of the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, as amended from time to time. (iii) An Authorized Dealer in India being the Indian correspondent of an overseas lender may, subject to the directions issued by the Reserve Bank in this regard, create a mortgage on an immovable property in India owned by an NRI or an OCI, being a director of a company outside India, for a loan to be availed by the company from the said overseas lender. Provided (a) the funds shall be used by the borrowing company only for its core business purposes overseas; (b) in case of invocation of charge, the Indian bank shall sell the immovable property to an eligible acquirer and remit the sale proceeds to the overseas lender. (iv) A person resident outside India who has acquired any immovable property in India in accordance with foreign exchange laws in force at the time of such acquisition or with the general or specific permission of the Reserve Bank may transfer such property to a person resident in India provided the transaction takes place through banking channels in India and provided that the resident is not otherwise prohibited from such acquisition.
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