Foreign Investments in India – Acquisition of Immovable Property

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..... effect to the provisions of the Foreign Exchange Management Act (FEMA), 1999 relating to acquisition and transfer of immovable property by foreign companies/persons resident outside India. 2. The Reserve Bank has issued Notification No.FEMA.93/2003-RB dated June 9, 2003 covering further modifications and measures for liberalisation with regard to acquisition of immovable property (copy enclosed). The updated instructions are summarised in the Annexure for ready reference. 3. Authorised Dealers may bring the contents of this circular to the notice of their constituents concerned. 4. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) Your .....

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..... n by way of Gift A PIO resident outside India can acquire any immovable property other than agricultural land/ farm house/ plantation property in India by purchase or by way of gift and any immovable property by way of inheritance. For acquiring the property, the funds should come from abroad or by debit to any non-resident account, viz., NRE/FCNR/NRO account of the investor. The gift can be received from a person resident in India or from a person resident outside India who is a citizen of India or from a PIO resident outside India. (iv) Acquisition by way of inheritance The immovable property can be acquired by PIO by way of inheritance from a person resident in India or a person resident outside India provided he has in turn acquir .....

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..... rty other than agricultural land/ farm house/ plantation property in India, Authorised Dealer may allow repatriation of sale proceeds outside India provided; i. the immovable property was acquired by the seller in accordance with the provisions of the Foreign Exchange Law in force at the time of acquisition by him or the provisions of FEMA Regulations; ii. the amount to be repatriated does not exceed (a) the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels or out of funds held in Foreign Currency Non-Resident Account or (b) the foreign currency equivalent as on the date of payment, of the amount paid where such payment was made from the funds held in Non-Resident Externa .....

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