Can I acquire commercial properties in India?
Ans: As per the general permission granted
by the Reserve Bank (RBI), properties other than agricultural
land or Farm Houses or plantation property can be acquired
by you provided the purchase consideration is met either out
of inward payment in foreign exchange through normal banking
channels or out of the funds from the purchaser’s NRE/FCNR
accounts managed by banks in India and a declaration is submitted
to the Central Office of Reserve Bank in form IPI7 within
a period of 90 days from the date of purchase of the property/final
payment of purchase consideration.
Q2). Is their any restrictions on number of investment
in commercial properties in India?
Ans: No, as far as quantity of NRI investment is concerned in real
estate investment in India there is no limit on the number of
investments can be made in commercial properties in India.
Q3). What is the role of FEMA, does it come under FEMA
act when I purchase any commercial property in India?
Ans: NRI investment in real estate India is regulated by FEMA (Foreign
Exchange Management Act) policies and guidlines. Because an NRI
would be dealing with foreign exchange when making any kind of
Investment in real estate which considered as transactions whcih
is bound to have some international financial implications, which
automaticalyy make it under “FEMA Act”.
Q4). What are other FEMA formalities and mandatory duties
that an NRI have look for while buying commmercial property in India?
Ans: Under FEMA before making any purchase a specified form – IPI 7
needs to be filed with the central office of the RBI along with
– deed or any other certified copy of the document proving that
the NRI has executed an agreement to purchase property within India.
The form has to he filed within 90 days of the purchase of property
and has to be accompanied with a bank certificate stating the consideration
paid for the purchase. Permissions are generally granted without
any delays provided all the relevant papers are submitted.
Photo: Animikha Housing Complex Entrance – Major Arterial Road – Rajarhat by Biswarup Ganguly, licensed under CC BY 3.0, via Wikimedia Commons.
