Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India)(Amendment) Regulations, 2009 - 186/2009 - Foreign Exchange Management

Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India )(Amendment) Regulations, 2009 MINISTRY OF FINANCE (Department of Economic Affairs) RESERVE BANK OF INDIA (Foreign Exchange Department) (CENTRAL OFFICE) NOTIFICATION Mumbai, the 3rd February, 2009 Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India )(Amendment) Regulations, 2009 G.S.R. 299(E). - In exercise of the powers conferred by clause (1) of sub-section (3) of Section 6 and sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) , the Reserve Bank of India hereby make the following amendments in the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000 (Notification No FEMA 21/2000-RB, dated May 3, 2000), namely:- 1. Short Title and Commencement. - These Regulations may be called the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2009. (b) They shall be deemed to have come into force from the dates specified in these regulations. 2. Amendment of Regulation 6.- In the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000 (Notification No FEMA 21/2000-RB, dated May 3, 2000),(hereinafter referred to as the principal regulations Regulation 6, in clause (b) after sub-clause (iii), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 11th July, 2008, namely:- "(c) In the event of failure in repayment of external commercial borrowing availed by a person resident in India under the provisions of the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 (Notification No. FEMA 3/2000-RB, dated 3-5-2000) a bank which is an authorised dealer may permit the overseas lender or the security trustee (in whose favour the charge on immovable property has been created to secure the (ECB) to sell the immovable property on which the said loan has been secured only to a (by the) person resident in India and to repatriate the sale proceeds towards outstanding dues in respect of the said loan and not any other loan" 3. Amendment to Regulation 8.- In the principal Regulations, in Regulation 8, after the proviso, the following new proviso shall be inserted and shall be deemed to have been inserted with effect from the 11 day of July, 2008, namely, - "Provided further that 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 (Notification No. FEMA 3/2000-RB, dated 3-5-2000)." [No. FEMA 186/2009-RB] SALIM GANGADHARAN, Chief General Manager-in-Charge Footnotes :- Certified that no person shall be adversely affected by the retrospective effect given to such Regulations. (ii) The principal Regulations were published in the Official Gazette vide No. G.S.R. 407(E) dated 8th May, 2000 in Part II Section 3, sub-section(i) and subsequently amended Vide: (i) No. G.S.R. 578(E) dated 19-8-2002 (ii) No. G.S.R. 557(E) dated 22-7-2003 (iii) No. G.S.R. 130(E) dated 3-3-2006