Rule 21 - Restriction on acquisition or transfer of immovable property outside India - Foreign Exchange Management (Overseas Investment) Rules, 2022

21. Restriction on acquisition or transfer of immovable property outside India. (1) Save as otherwise provided in the Act or this rule, no person resident in India shall acquire or transfer any immovable property situated outside India without general or special permission of the Reserve Bank: Provided that nothing contained in this rule shall apply to a property (i) held by a person resident in India who is a national of a foreign State; (ii) acquired by a person resident in India on or before the 8th day of July, 1947 and continued to be held by such person with the permission of the Reserve Bank; (iii) acquired by a person resident in India on a lease not exceeding five years. (2) Notwithstanding anything contained in sub-rule (1) (i) a person resident in India may acquire immovable property outside India by way of inheritance or gift or purchase from a person resident in India who has acquired such property as per the foreign exchange provisions in force at the time of such acquisition; (ii) a person resident in India may acquire immovable property outside India from a person resident outside India (a) by way of inheritance; (b) by way of purchase out of foreign exchange held in RFC account; (c) by way of purchase out of the remittances sent under the Liberalised Remittance Scheme instituted by the Reserve Bank: Provided that such remittances under the Liberalised Remittance Scheme may be consolidated in respect of relatives if such relatives, being persons resident in India, comply with the terms and conditions of the Scheme; (d) jointly with a relative who is a person resident outside India; (e) out of the income or sale proceeds of the assets, other than ODI, acquired overseas under the provisions of the Act; (iii) an Indian entity having an overseas office may acquire immovable property outside India for the business and residential purposes of its staff, as per the directions issued by the Reserve Bank from time to time; (iv) a person resident in India who has acquired any immovable property outside India in accordance with the foreign exchange provisions in force at the time of such acquisition may (a) transfer such property by way of gift to a person resident in India who is eligible to acquire such property under these rules or by way of sale; (b) create a charge on such property in accordance with the Act or the rules or regulations made thereunder or directions issued by the Reserve Bank from time to time. (3) The holding of any investment in immovable property or transfer thereof in any manner shall not be permitted if the initial investment in immovable property was not permitted under the Act.