Registration in the name of an nri
MALLIK AMBATI
(Querist) 06 December 2015
This query is : Resolved
My mother has agricultural property in Vijayawada (AP) and Bangalore (Karnataka).
She wants to transfer these two properties on my sister's name, who is a US citizen. Since she got a US passport, her Indian passport got cancelled. She is not having an Aadhaar Card either. How can my mother transfer the properties onto my sister's name as she is not having an Indian passport or Aadhaar Card? In this scenario, could you please let me know what are the documents required for registration of the properties onto my sister's name, in Andhra Pradesh and Karnataka.
Thanks in Advance.
P. Venu
(Expert) 07 December 2015
How is the property proposed to be transferred - through gift, or sale?
P. Venu
(Expert) 08 December 2015
Your sister being an NRI or having no Aadhar Card or Indian passport is no constraint in registering the gift deed.
MALLIK AMBATI
(Querist) 08 December 2015
But I heard from the local registration office in AP saying that, Aadhaar Card or Indian Passport is mandatory for any registration. Is that correct ?
Rajendra K Goyal
(Expert) 08 December 2015
Your sister is of Person Of Indian origin status.
MALLIK AMBATI
(Querist) 08 December 2015
Yes, she is of Person of India status.
Anupam Lahiri
(Expert) 08 December 2015
Here there is a legal problem. The applicable law is Foreign Exchange Management (Acquisition and Transfer of Immovable Property In India) Regulations, 2000 as amended from time to time.
POI are prohibitted from acquiring by gift Agricultural land, Plantation property and Farm House.
In this situation, gift would not be a valid mechanism.
MALLIK AMBATI
(Querist) 09 December 2015
Here my sister acquires the agricultural land by inheritance from her mother. I heard that a PIO can acquire agricultural by inheritance. My mother would transfer the land through a gift deed. Will that be OK? Please clarify.
Anupam Lahiri
(Expert) 09 December 2015
You have rightly heard it. Your sister can acquire the agricultural land by inheritance , but only from a PIO, resident outside India.
But by gift, the land cannot be transferred because, it would not amount to inheritance. Inheritance would come into picture only after demise of your mother, not before that.
Consult one lawyer dealing in foreign exchange matters as in this case application of FEMA Act and Rules are involved.
MALLIK AMBATI
(Querist) 09 December 2015
Ok..now I understand that, inheritance comes into picture only after the demise of my mother.
You said that my sister can acquire agricultural land by inheritance, only from a PIO, resident outside India. Does this mean that even after the death of my mother, my sister will not be able to inherit the property, as my mother is not a PIO ? Is my understanding correct? Please clarify.
Anupam Lahiri
(Expert) 09 December 2015
If your mother changes her status to become a PIO, then only the inheritance of the agricultural land to your sister would be possible.
At this point of time it is not possible to gift the same to your sister.
MALLIK AMBATI
(Querist) 09 December 2015
OK now I understand. Thank you very much for the information.
But I have one question.
My mother purchased this property from her own earnings and it is not an ancestral property. In the event of my mother's death, property might go to my father and from him, it might go to my younger brother. My mother doesn't want this to happen. She want to give this property only to my sister. That is the reason, we thought if she can transfer this to my sister now itself, then it will not go to my brother after my mother's death. In this scenario, how can my mother ensure/secure that after her death, the property will go to my sister only and not to anybody else. I appreciate if you could give us some idea on how can we do this. Thanks in advance.
T. Kalaiselvan, Advocate
(Expert) 14 December 2015
Acquisition of immovable property in India by persons resident outside India (foreign national) is regulated in terms of section 6 (3) (i) of the Foreign Exchange Management Act (FEMA), 1999 as well as by the regulations contained in the Notification No. FEMA 21/2000-RB dated May 3, 2000, as amended from time to time. Section 2 (v) and Section 2 (w) of FEMA, 1999 defines `person resident in India' and a `person resident outside India', respectively.
The regulations under Notification No. FEMA 21/2000-RB dated May 3, 2000, as amended from time to time, permit a NRI or a PIO to acquire immovable property in India, other than agricultural land or, plantation property or farm house.
The general permission, however, covers only purchase of residential and commercial property and is not available for purchase of agricultural land / plantation property / farm house in India.
A person resident outside India (i.e. NRI or PIO or foreign national of non-Indian origin) can inherit immovable property from
(a) a person resident in India
(b) a person resident outside India
However, the person from whom the property is inherited should have acquired the same in accordance with the foreign exchange law in force or FEMA regulations, applicable at the time of acquisition of the property.
MALLIK AMBATI
(Querist) 14 December 2015
I understand that NRI or PIO cannot purchase agricultural land. You said they can inherit immovable property. Is this immovable property include agricultural property? Can a NRI or PIO inherit agricultural property, from parents, who are residents of India. If they can, then what documents are required for registration, as my sister (NRI) is not having Aadhaar Card or Indian Passport? Her Indian passport got cancelled after getting US passport.
