Mortgage ny nri to foreign national
adityaiyer
(Querist) 12 June 2015
This query is : Resolved
An NRI wants to mortgage to a foreign national of non Indian origin based in UK, his residential property in Mumbai, for the purpose of acquiring another property in UK.
Can he mortgage the property? If yes, on default made by NRI, will such property be transferred to the foreign national? Can the foreign national hold such property.
Dr J C Vashista
(Expert) 13 June 2015
Yes, the NRI owner of property has all rights to alienate, mortgage, gift or sell to any one including NON-INDIAN British citizen.
How and what type default is expected from NRI is vague.
Holding of property by a foreigner is a state subject. I think Maharashtra do not have any embargo.
malipeddi jaggarao
(Expert) 13 June 2015
No, it cannot be transferred to a foreign national as per RBI circular No. RBI/2014-15/9 July 1, 2014
Master Circular No. 4/2014-15 (Updated upto March 11, 2015)
A NRI may transfer any immovable property in India to a person resident in India.
He may transfer any immovable property (other than agricultural land or plantation
property or farm house) to an Indian Citizen resident outside India or a PIO resident
outside India.
Please be guided by the RBI circular.
Rajendra K Goyal
(Expert) 13 June 2015
An NRI can not transfer by way of mortgage their residential and commercial property in India to a party abroad. For this purpose prior approval of the Reserve Bank of India (RBI) is required.
