For our NRI clients we have a hotline number which can be reached 24×7 irrespective of your current location. The number is +91-8430666888.
You can also contact us through email at firstname.lastname@example.org We have put together the list of most relevant questions from a NRI’s perspective.
DO NON-RESIDENT INDIAN CITIZENS REQUIRE PERMISSION OF RESERVE BANK TO ACQUIRE RESIDENTIAL/COMMERCIAL PROPERTY IN INDIA?
DO FOREIGN CITIZENS OF INDIAN ORIGIN REQUIRE PERMISSION OF 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 prior permission of Reserve Bank.
IN WHAT MANNER THE PURCHASE CONSIDERATION FOR THE RESIDENTIAL IMMOVABLE PROPERTY SHOULD BE PAID BY FOREIGN CITIZENS OF INDIAN ORIGIN UNDER THE GENERAL PERMISSION?
The purchase consideration for the property has to be made only from funds that have been remitted to India through normal banking channels. Alternatively, they can pay the sale consideration from funds held in a non-resident (external) rupee account (NRE) or non-resident (ordinary) account (NRO) or non resident (foreign currency) account (FCNRB).
WHAT ARE THE FORMALITIES REQUIRED TO BE COMPLETED 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.
CAN SUCH PROPERTY BE SOLD WITHOUT THE PERMISSION OF 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 NRE/FCNR accounts.
CAN SALE PROCEEDS OF SUCH PROPERTY IF AND WHEN SOLD BE REMITTED OUT OF INDIA?
In respect of residential properties purchased on or after 26th May 1993, Reserve Bank considers applications for repatriation of sale proceeds up to the original investment 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.