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Investment
Procedures |
VII. POINTS
TO NOTE
1. The General Permissions discussed above will not cover
acquisition of Agricultural Land/Farm House/Plantation Property situated in India.
2. For the purpose of the General Permissions discussed above a foreign
citizen shall be deemed to be of Indian origin if -
a. he held an Indian Passport at any time, or
b. he or his father or paternal grandfather was
citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955.
However citizens of Pakistan, Bangladesh, Afghanistan, Bhutan, Srilanka and Nepal shall be
deemed to be not of Indian origin.
VIII. LETTING OUT IMMOVABLE (COMMERCIAIL RESIDENTIAL) PROPERTY
Under Section 29 of the Foreign Exchange Regulation Act 1973, the Reserve Bank of India
has granted General Permission for foreign citizens of Indian origin and Indian citizens
residing outside India to let out their immovable properties. (Commercial/Residential)
The rental income or proceeds of any investments out of such income shall be repatriable
outside India subject to the conditions mentioned below.
IX. ACQUISITION OF RESIDENTIAL PROPERTY BY FOREIGN NATIONALS OF NON-INDIAN ORIGIN
The Reserve Bank of India on an application in Form IPI- I may consider favorably the
acquisition of residential property by foreign nationals of non-Indian origin provided:
a. The purchase consideration is met out of
funds re@tted from abroad.
b. The property is acquired for bonafide
residential use.
c. The foreign national of non-Indian origin
undertakes not to repatriate the sale proceeds.
X. INVESTMENT WITH REPATRIATION RIGHTS IN COMPANIES ENGAGED IN HOUSING AND REAL
ESTATE DEVELOPMENT
On an application being made in Form ISD (R) to The Reserve Bank of India, existing or new
companies engaged or proposing to engage in the under noted activities, may be permitted
to issue Equity Shares/Convertible Debentures to Non-residents of Indian
Nationality/Origin upto 100% of the new issue with repatriation benefits.
a. Development of serviced plots and
construction of build-up residential premises.
b. Real Estate covering construction of
residential and commercial premises including business centres and offices.
c. Developments of townships.
d. City and region level urban infrastructure
facilities including roads and bridges.
e. Manufacturing of building materials.
f. Financing of housing development.
As in the case of NRIs repatriation of the original investment in foreign exchange made by
OCBs will be permitted with the prior pen-nission from Reserve Bank.
Repatriation of original investments will be allowed only after the lock-in period of 3
years from the date of issue of Equity Shares/Convertible Debentures with prior permission
from the Reserve Bank of India. In addition, OCBs will also be permitted to repatriate
profit (upto 16%) arising from sale of such investment after the lock in period of three
years.
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