PANAJI: NRIs and PIOs cannot purchase agricultural land, plantation property or farmhouses in India, said A Subramanya, Manager, Foreign Exchange department, Reserve Bank of India, Panaji.
At a seminar organized in collaboration with the Institute of Company Secretaries of India and Gon 'Acquisition of Immovable Property by Non-Resident Indians', Subramanya said there are no restrictions on the number of residential or commercial properties that NRIs and PIOs can be purchased. Foreign nationals of non-Indian origin cannot be second holders to immovable property purchased by an NRI or PIO. The onus of proving his or her residential status lies with the buyer, Subramanya stated.
Foreign nationals of non-Indian origin who are residing abroad cannot purchase immovable property in India unless the property is acquired by way of inheritance from a person who was resident in India.
A foreign national who is a resident in India can purchase immovable property in India if the buyer fulfils the criteria mentioned in FEMA, 1999. The buyer will have to obtain approvals and fulfil any requirements prescribed by other relevant authorities.
A foreign company which has established a branch office or other place of business in India, in accordance with the Foreign Exchange Management Regulations 2000, can acquire immovable property necessary for carrying on such activity in India.
The payment for acquiring such a property should be made by way of foreign inward remittance through proper banking channels, he said. On winding up of the business, the sale proceeds of such property can be repatriated only with the prior approval of the Reserve Bank.
The seminar was attended by foreign nationals, CAs, and affiliates of the Company Secretaries Institute.
Stating the aim of the seminar, Kevin Fernandes, of the organizers said "people often purchase properties and feel duped because they don't get the properties registered in their name". This, he felt creates mistrust and leaves people, particularly foreign nationals, feeling misguided and left in the lurch.
Source: articles.timesofindia.indiatimes.com
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