Transfer of immovable property by a Foreign National of Indian Origin (PIO)
Querist :
Anonymous
(Querist) 30 July 2011
This query is : Resolved
I am planning to buy a residential property which is owned by a foreign national (UK Passport holder) of Indian Origin. Does this transaction need prior approval of RBI and if so, how it is obtained.
In this case, the person has already returned to India but for applying for Indian Passport, he will have to stay continuously in India for at least 1 year which is not complete yet. Hence, he is still a foreign national.
If required, he is ready to give the undertaking that he is not going to repatriate the sale proceeds out of India. As far as I know, a PIO can sell the property to (a) an Indian National or (b) to an NRI but to sell to another PIO, he needs to take permission from RBI. Please advise if I am not right.
An expert opinion would be highly appreciated.
