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Do
non-resident Indian citizens require permission of the Reserve Bank
to acquire residential/commercial property in India?
No.
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Do
foreign citizens of Indian origin require permission of the Reserve
Bank to purchase immovable property in India for their residential use?
Reserve Bank has granted general permission to foreign citizens
of Indian origin, whether resident in India or abroad to purchase immovable
property in India for their bona fide residential purpose. They are,
therefore, not required to obtain permission of Reserve Bank.
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In
what manner the purchase consideration for the residential immovable
property should be paid by foreign citizens of lndian origin under the
general permission?
The purchase consideration should be met either by inward remittances
in foreign exchange through normal banking channel, or out of funds
from NRE/FCNR accounts maintained with banks in India.
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What
are the formalities required by foreign citizens of Indian origin for
purchasing residential immovable property in India under the general
permission?
They are required to file a declaration in form IPI 7 with the Central
Office of Reserve Bank at Mumbai within a period of 90 days from the
date of purchase of immovable property or final payment of purchase
consideration along with a certified copy of the document evidencing
the transaction and bank certificate regarding the consideration paid.
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Can
such property be sold without the permission of the Reserve Bank?
Yes. Reserve Bank has granted general permission for sale of such
property. However, where the property is purchased by another Foreign
citizen of Indian origin, funds towards the purchase consideration should
either be remitted to India or paid out of balances in NRI/FCNR accounts.
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Can
sale proceeds of such property if and when, be remitted out of India?
In respect of residential properties purchased on or after 26th
May 1993,the Reserve Bank considers applications for repatriation of
sale proceeds up to the consideration amount remitted in foreign exchange
for the acquisition of the property for two such properties. The balance
amount of 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 of the owner of the property.
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Are
any conditions required to be fulfilled if repatriation of sale proceeds
is desired?
Applications for repatriation of sale proceeds are considered provided
the sale takes place after three years from the date of final purchase
deed or from the date of payment of final installment of consideration
sale whichever is later.
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What
is the procedure for seeking such repatriation?
Applications for necessary permission for remittance of sale proceeds
should be made in form IPI 8 to the Central Office of the Reserve Bank
at Mumbai within 90 days of the sale of the property.
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Can
foreign citizens of Indian origin acquire or dispose residential property
by way of gift?
Yes. The Reserve Bank has granted general permission to foreign
citizens of Indian origin to acquire or dispose of properties up to
two houses 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,
subject to compliance with applicable tax laws.
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Can
immovable property held in India, he transferred by way of gift to relatives/registered
charitable trusts/organizations in India?
Yes. General permission has been granted by Reserve Bank to non-resident
persons (foreign Citizens) of Indian origin to transfer by way of gift
immovable property held by them in India to relatives and charitable
trusts/organizations subject to the condition that the provisions of
any, other law. Including Foreign Contribution (Regulation) Act, 1976,
as applicable, are duly complied with.
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Can
foreign citizens of Indian origin acquire commercial properties in India?
Yes. Under the general permission granted by Reserve Bank properties
other than agricultural land/farm house/plantation property can tic
acquired by foreign citizens of Indian origin provided the purchase
consideration is met either out of inward remittances in foreign exchange
through normal banking channels or out of funds from the purchasers
NRI/FCNR accounts maintained with banks in India and a declaration is
submitted to the Central Office of Reserve Bank in form IPI 7 within
a period of 90 days from the date of purchase of the property/final
payment of purchase consideration.
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Can
they dispose such properties?
Yes.
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Can
sale proceeds of such property be remitted out of India?
Yes. Repatriation of original investment in respect of properties
purchased by foreign citizens of Indian origin on or after 26th May
1993 will be allowed to be remitted up to the consideration amount originally
remitted from abroad provided the property is sold after a period of
three years from the date of the final purchase deed or from the date
of payment of final installment of consideration amount whichever is
later. Applications for the purpose are required to be made to the Central
Office of Reserve Bank within 90 days of the sale of property in form
IPI 8.
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Can
the properties (residential/commercial) be given on rent if it is not
required for immediate use?
Yes. Reserve Bank has granted general permission for letting out
any immovable property in India. 'The rental income or proceeds of any
investment of' such income are eligible for repatriation.
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Can
NRIs obtain loans for acquisition of a house/flat for residential purpose
from authorized dealers/financial institutions providing housing finance?
The Reserve Bank has granted general permission to certain financial
institutions providing housing finance e.g. HDFC, LIC Housing Finance
Ltd. etc., and authorized dealers to grant housing loans to non-resident
Indian nationals for acquisition of a house/flat for self-occupation
subject to certain conditions. The purpose of the loan, margin money
and the quantum of loan will be at par with those applicable to housing
loans to residents. Repayment of loan should be made within a period
not exceeding 15 years out of inward remittances or out of funds held
in the investors NRI/FCNR/NRO accounts.
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Can
Indian companies grant loans to their NRI staff?
The Reserve Bank permits Indian firms/companies to grant housing
loans to their employees deputed abroad and holding Indian passports
subject to certain conditions.
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Can
an authorized dealer grant housing loan to non-residents of Indian nationality
where he is a principal borrower with his resident close relative as
a co-obligator/guarantor or where the land is owned jointly by such
NRI borrower with his resident close relative?
Yes. However, in such cases the payment of margin money and repayment
of the loan installments should be made by the NRI borrower.
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