Frequently Asked Questions
What are the requirements for the purchase of Agricultural Land/Plantation property or Farmhouses in India by NRIs and PIOs?
Any NRI or PIO interested in the purchase of Agricultural Land/Plantation Property or Farmhouses in India would have to send a formal request for the same to The Chief General Manager, Reserve Bank of India, Central Office Exchange Control Department, Foreign Investment Division (III), Mumbai 400 001.
Are Non Resident Indians (NRIs) & Foreign Citizen of Indian origin (PIOs) allowed to acquire or dispose immovable property in India?
Who is a Person of Indian Origin (PIO)?
Who is a Non-resident Indian (NRI)?
What method should an NRI or PIO use in order to purchase a property in India?
Do you require the permission of the RBI to transfer immovable property in India?
Can an NRI give a Power of Attorney to a person in India for completion of loan formalities on their behalf?
Can sale proceeds of immovable property be remitted out of India?
Additionally, the following points also need to be adhered to in this respect:
i. The immovable property was acquired by the seller in accordance with the provisions of the Exchange Control Rules/Regulations/Laws in force at the time of acquisition, or the provisionsof the Regulations framed under the Foreign Exchange Management Act, 1999;
ii. The amount to be repatriated does not exceed:
the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels or out of funds held in foreign currency non-resident account(s) or
the foreign currency equivalent, as on the date of payment, of the amount paid where such payment was made from the funds held in non-resident external account(s) for acquisition of the property; and
in case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.
iii. Finally, application for the purpose of repatriation is required to be made to the Central Office of Reserve Bank within 90 days of the sales of property in Form IPI 8.
Can the properties (Residential/Commercial) be given on rent if not required for immediate use?
What are the conditions if the power of attorney is being executed outside India?
i. The execution of the power of attorney must be done on a stamp paper or plain paper, as the case may be in the country where the power of attorney is being executed.
ii. The signatures of the executants have to be attested by an official of the Indian Embassy, Indian Consulate or Trade Commissioner, in the country where the executants reside.
iii. The signature of the attorney should be verified in India by a Notary, his employer or his banker on a separate piece of paper which should be submitted to SHFL together with the Power of Attorney.