Now the Reserve Bank of India, in supersession of the said notification as amended from time to time, made ‘The Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2018, vide Notification No. FEMA dated 26.03.2018. These regulations came into effect from 26.03.2018.
Acquisition and Transfer of Property in India by a Non-Resident Indian or an Overseas Citizen of India:-
An NRI or an OCI may
Provided further that no payment for any transfer of immovable property shall be made either by traveler’s cheque or by foreign currency notes or by any other mode other than those specifically permitted under this clause.
Acquisition of Immovable Property for carrying on a permitted activity:-
Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016, as amended from time to time, a branch, office or other place of business for carrying on in India any activity, excluding a liaison office, may –
Provided no person of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Hong Kong or Macau or Nepal or Bhutan or Democratic People’s Republic of Korea (DPRK) shall acquire immovable property, other than on lease not exceeding five years, without prior approval of the Reserve Bank.
Joint acquisition by the spouse of an NRI or an OCI:-
A person resident outside India, not being a Non-Resident Indian or an Overseas Citizen of India, who is a spouse of a Non-Resident Indian or an Overseas Citizen of India may acquire one immovable property (other than agricultural land/ farmhouse/ plantation property), jointly with his/ her NRI/ OCI spouse.
Acquisition by a Long-Term Visa holder:-
A person is a citizen of Afghanistan, Bangladesh or Pakistan belonging to minority communities in those countries, namely, Hindus, Sikhs, Buddhists, Jains, Parsis and Christians who are residing in India and has been granted a Long Term Visa (LTV) by the Central Government may purchase only one residential immovable property in India as dwelling unit for self-occupation and only one immovable property for carrying out self-employment subject to the following conditions:
Repatriation of sale proceeds:-
Prohibition on acquisition or transfer of immovable property in India by citizens of certain countries:-
No person being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Hong Kong or Macau or Democratic People’s Republic of Korea (DPRK) without prior permission of the Reserve Bank shall acquire or transfer immovable property in India, other than lease, not exceeding five years.
Provided this prohibition shall not apply to an OCI.
Explanation: For the purpose of this regulation the term “citizen” shall include natural persons and legal entities.
Prohibition on transfer of immovable property in India:-
Save as otherwise provided in the Act or Regulations, no person resident outside India shall transfer any immovable property in India:-
Any transaction involving acquisition or transfer of immovable property under these regulations shall be undertaken:
Any existing holding of immovable property in India by a person resident outside India made in accordance with the policy in existence at the time of such acquisition would not require any modifications to confirm to these regulations.