MR. X- Does an
NRI require a permission from RBI to buy a residential/commercial property in India ?
TIMES MEDIA HOUSE: No
MR. X- Does a Foreign Citizen of Indian origin require a permission from
RBI to buy a residentiallcommercial property in India ?
TIMES MEDIA HOUSE: Yes, but RBI has given permission to purchase
immovable property in India for their bonafied residential purpose. Separate permission
not essential for residential / commercial purpose /agricultural land / farm house /
plantation/ property etc.
MR. X - Under the general permission in what manner the purchase
consideration is to be paid byforeign citizens of Indian origin to buy a
residential/commercial property ?
TIMES MEDIA HOUSE: The purchase consideration should be met either out of
inward remittances in foreign exchange through normal banking channels, or out o funds
from NRE/FCNR accounts maintained with banks in India.
MR. X - Kindly inform on the formalities required to be completed by a
foreign citizen of Indian origin.
TIMES MEDIA HOUSE: The RBI, Bombay branch, central office issues a
prescribed form to declare the requirements within 90 days from the date of purchase of
the said property or final payment of purchase consideration.
MR. X - Once a foreign citizen of Indian origin buys a property can it be
resold again ?
TIMES MEDIA HOUSE: Definitely, RBI has granted permission but if the
property is purchased by another foreign citizen of Indian origin then the funds towards
the purchase consideration should either be remitted to India or paid out of balances in
NRE/FCNR Accounts.
MR. X - After the sale of such a property can the money be remitted out
of India?
TIMES MEDIA HOUSE: If the property purchased on or after 26th May, 1993,
RBI considers application for repatriation of sale proceeds up to the consideration amount
remitted in foreign exchange for the acquisition of the sale proceeds if any or sale
proceeds in respect of properties purchased prior to 26th May, 1993 will have to be
credited to the ordinary non-resident rupee account (NRO a/c) of the owner of the
property.
MR X - If repatriation of a sale proceeds is desired, are there any
conditions required to be fulfilled ?
TIMES MEDIA HOUSE: If this sale of the property takes place after three
years from the date of final purchase deed or from the date of payment of final instalment
of consideration amount whichever is later, then applications for repatriation of sale
proceeds are considered.
MR. X - Kindly explain the procedure for seeking such repatriation ?
TIMES MEDIA HOUSE: Application have to be filed in the prescribed form
within 90 days of the sale of property at RBI Central Office, Mumbai.
MR. X - Can a foreign citizen of Indian origin acquire or sell of his
residential property by way of gift ?
TIMES MEDIA HOUSE: Yes, under the permission in general, granted by RBI,
properties up to two houses can be acquired transferred or disposed off by way of gift
from or to a relative who may be an Indian citizen or a person of Indian origin whether
resident in India or not.
MR. X - Can the properties (Residential/commercial) be given on rent if
not required for immediate use ?
TIMES MEDIA HOUSE: Yes, RBI has given permission for letting out any
immovable property in India such income has to be credited to NRO a/c.
MR. X - Does a foreign citizen of non Indian origin require permission of
RBI ? e.g. a Australian purchasing immovable property in India ?
TIMES MEDIA HOUSE: Yes, RBI shall grant a permission to foreign citizen-
or foreign companies, if the property is only for residential use only. The amount shall
be paid by foreign exchange and the income accruing by way of rent etc. will be credited
only to an NRO account. An application by a foreign citizen / foreign company has to be
made in form IPI-I of RBI. The sales proceeds will not be allowed to be repatriated but is
to be credited in NRO account only.
MR. X - Can an NRI ' send money/foreign remittance from Singapore for
purchase of land before making an application to RBI for obtaining its approval ?
TIMES MEDIA HOUSE:
Depending upon the category of NRIs he can do it. One holding Indian passport and the
other foreign passport. |
