Date of
Issued

Notification
Number

Sub-Heading

Issued by

26/04/1993

F.E.R.A.133/93-RB

Acquisition or Holding of Immovable Property for Carrying on Activity Permitted by Reserve Bank

Reserve Bank of India

26/05/1993

F.E.R.A.152/93-RB

Acquisition, Holding, etc. of Immovable Property in India by Foreign Citizens of Indian origin

Reserve Bank of India

30/03/1999

F.E.R.A.201/99-RB

General permission for transfer by way of gift of immovable property held in India by non-resident persons of Indian origin to registered Charitable Trusts/Organisations in India

Reserve Bank of India

SECTION 31

Notification No. F.E.R.A.133/93-RB dated 26th April 1993

Acquisition or Holding of Immovable Property for

Carrying on Activity Permitted by Reserve Bank

In pursuance of sub-section (1) of Section 31 of the Foreign Exchange Regulation Act,

1973 (46 of 1973) and in supersession of its Notifications No. F.E.R.A.2/74-RB dated 1st January 1974 and No. F.E.R.A.67/86-RB dated 28th November 1986, the Reserve Bank is pleased to permit a company (other than a banking company) which is not incorporated under any law in force in India;

(a)

to acquire or hold any immovable property situated in India, provided that

(i)

such acquisition or holding of immovable property is necessary for or incidental to carrying on by such company of any activity permitted under Section 28 or Section 29 of the said Act;

and

(ii)

such company files a declaration with the Reserve Bank not later than ninety days from the date of such acquisition or holding in such form as may be specified.

(b)

to transfer, by way of security for any borrowing, any such immovable property so acquired or held.

Provided that the permission granted hereby shall not be available to a company which

has been permitted under Section 29 to open a liaison office or to post a representative in India.

Notification No. F.E.R.A.152/93-RB dated 26th May 1993

Acquisition, Holding, etc. of Immovable Property

in India by Foreign Citizens of Indian origin

In pursuance of sub-section (1) of Section 31 of the Foreign Exchange Regulation Act,

1973 (46 of 1973) and in supersession of its notification No. F.E.R.A.100/92-RB dated 8th January 1992, the Reserve Bank is pleased to grant general permission to foreign citizens of Indian origin, to acquire by way of purchase or inheritance and dispose of by way of sale any immovable property, not being agricultural land/farm house/plantation property, situate in India, and to acquire by way of gift and dispose of by way of sale or gift any residential property situate in India, subject to the following conditions :

1

(a)

In the case of purchase the entire consideration is paid out of foreign exchange brought into India through normal banking channel or out of the funds held in Non-Resident External (NRE) Rupee or Foreign Currency Non-Resident (FCNR) account maintained by the purchaser in India. Purchase of residential property is, however, permissible only for bona fide residential purpose of the purchaser, and it shall not be let out except where it is not immediately required for that purpose.

(b)

In the case of acquisition by way of gift -

(i)

it is effected between relatives;

(ii)

it does not exceed two residential properties in the case of persons resident outside India;

and

(iii)

gift tax liability, if any, is duly discharged.

(c)

The person acquiring such property submits to the Chief General Manager, Exchange Control Department, Foreign Investment Division (III), Reserve Bank of India, Central Office, Mumbai, within a period of 90 days from the date of such acquisition, a declaration in the specified form together with a true copy of the conveyance deed and a certificate from the concerned bank in India, indicating the particulars about payment of consideration amount.

2.

The entire income by way of rent or the interest on the investment of sale proceeds and the entire sale proceeds of the immovable property, acquired under this notification, shall be credited to the Non-Resident Ordinary (NRO) Rupee account maintained in India.

3.

Repatriation of sale proceeds

(a)

Repatriation of sale proceeds of any immovable property acquired in accordance with this notification is permissible with the prior approval of Reserve Bank -

(i)

if such sale takes place after three years from the date of acquisition or from the date of payment of final instalment of consideration amount, whichever is later;

and

(ii)

to the extent of consideration amount equivalent in foreign exchange paid for acquisition of the immovable property sold;

Provided that in the case of sale of residential properties, amount repatriable shall not exceed the sum of the consideration amount equivalent in foreign exchange paid for acquisition of not more than two residential properties sold.

(b)

Any person, seeking repatriation of permissible portion of sale proceeds of any such immovable property, may apply to the Chief General Manager, Exchange Control Department, Foreign Investment Division (III), Reserve Bank of India, Central Office, Mumbai in the form specified, at the earliest.

Explanations :

A.

A person (not being a citizen of Pakistan or Bangladesh or Afghanistan or Bhutan or Sri Lanka or Nepal) shall be deemed to be of 'Indian origin', if -

(i)

he, at any time, held an Indian passport;

or

(ii)

he, or his father or grandfather was a citizen of India by virtue of the Constitution of India or Citizenship Act, 1955 (57 of 1955).

B.

The word ';relative'; shall have the meaning as given under Section 6 of the Companies Act, 1956 (1 of 1956).