Foreign National
Uma Shankar
(Querist) 20 April 2009
This query is : Resolved
Can a foreign national buy property in India?
Tribhuwan Pandey
(Expert) 20 April 2009
In UP and Uttarakhand under Zamidari Abolition Act a foreign national can buy a property if it is in the welfare of the State and its people.
A V Vishal
(Expert) 20 April 2009
Dear Uma Shankar:
Under FEMA rules a foreign national cannot buy property in India except A person resident outside India who has established in India in accordance with the Foreign Exchange Management (Establishment in India of Branch or Office or other Place of Business) Regulations, 2000, a branch, office or other place of business for carrying on in India any activity, excluding a liaison office, may –
acquire any immovable property in India, which is necessary for or incidental to carrying on such activity;
Provided that
all applicable laws, rules, regulations or directions for the time being in force are duly complied with; and
the person files with the Reserve Bank a declaration in the form IPI annexed to these regulations, not later than ninety days from the date of such acquisition;
transfer by way of mortgage to an authorised dealer as a security for any borrowing, the immovable property acquired in pursuance of clause (a).
sanjeev murthy desai
(Expert) 21 April 2009
A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India. But, he/she may take residential accommodation on lease provided the period of lease does not exceed five years. In such cases, there is no requirement of taking any permission of or reporting to Reserve Bank.
And foreign national who is a person resident in India can purchase immovable property in India but the person concerned would have to obtain the approvals, and fulfil the requirements if any, prescribed by other authorities, such as the concerned State Government, etc However, a foreign national resident in India who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of Reserve Bank. Such requests are considered by Reserve Bank in consultation with the Government of India.
Sanjeev desai
