NRI GUIDELINES :

AQUISITION OF IMMOVABLE PROPERTY

By NRI's holding Indian Passport

NRI's holding Indian passport do not require prior permission of Reserve Bank of India to buy residential or commercial immovable property in India. The purchase consideration may be paid either by remittance of funds from abroad through normal banking channels or out of NRE / FCNR / NRO account. NRI's of Indian nationality do not require any permission for acquisition, transfer or disposal by way of gift of immovable property which is not a farmhouse or agricultural land or plantations property. Declaration on form IPI 7 for acquisition of commercial property for carrying on any industrial, commercial or trading activity by their proprietary / partnership firm in India is required to be filed with RBI within 90 days from date of purchase.

By foreign citizens of Indian origin Under the general permission to NRI's holding foreign passport, the RBI has allowed them to acquire, hold, transfer or dispose off by way of sale or inheritance, immovable properties situated in India. A foreign citizen shall be deemed to be of Indian origin, if

1. He held an Indian passport at any time: or
2. He or his father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955.

The citizens of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka and Nepal shall be deemed to be not of Indian origin for the purposes of the aforesaid per mission. The general permission has been granted provided :

1. The property is for the purchaser's bonafide residential use; The purchase consideration is met either by remittance from funds abroad through normal banking channels or out of NRE / FCNR.
2. Income accruing by way of rent from the properties purchased or acquired by inheritance will not be allowed to be repatriated abroad even if the purchase consideration was met out of NRE / FCNR account.

It is however, necessary for foreign citizens of Indian origin to declare such property to RBI within a period of 90 days from the date of purchase in the prescribed IPI 7 to the Chief General Manager, Exchange Control Department, Foreign Investment Division, Central Office Department, Foreign Investment Division, Central Office, RBI -Bombay.

SALE OF IMMOVABLE PROPERTY

The RBI has granted general permission to NRI's holding Indian passports and foreign citizens of Indian origin, whether resident in India or not, to dispose of by sale or inheritance immovable property situated in India subject to certain conditions. However, such property can be sold to another foreign national of Indian origin provided funds towards the purchase consideration are met from funds remitted from abroad through normal banking channels or NRE / FCNR account.

LETTING OUT IMMOVABLE PROPERTY

The RBI has granted general permission to NRI's and foreign citizens of Indian origin, to let out their residential properties acquired for their bonafied residential purpose but which on account of their residence abroad, are not required for their immediate residential purpose.