Q1) Can a NRI invest in immovable property
in India?
Ans: Yes, a NRI can definitely invest in immovable
property in India.
For Indian Origin NRIs
Under section 31 of FERA foreigners can invest in two possible
ways:
- Foreign currency investment remitted from abroad.
- From local funds in rupees.
For Non-Indian NRIs
Foreign citizens of non-Indian origin can invest in property provided:
- Property is purchased for residential purpose only.
- The purchase consideration must be met from foreign exchange
remitted from abroad through normal banking channels.
- Income arising from the property in question shall not be
repatriated outside India.
Q2) What investment related care should an NRI
take while selling an immovable property?
Ans: Reserve Bank of India has formulated no
implication for non-resident Indians to sell their immovable property
in India. But, the Indian buyer in this case (if any), is obligated
to take permission prior to payment of the purchase price (under
section 9 of FERA).
Q3) Can a NRI acquire Indian property from Indians?
Ans: Yes, he can.
- Through Inheritance: Reserve Bank of India has granted permission
to NRIs to acquire Indian property through inheritance.
- Through Gifts: NRI can acquire property through gifts from
some relative.
Q4) Can an NRI apply for home loan in India?
Ans: Yes, RBI has granted general permission
to banks like HDFC, LIC Housing to cater the home loan related
needs for NRIs for acquisition of residential property in India,
but subject to some conditions.
Q5) Are foreign citizens of India eligible to
acquire commercial properties in India?
Ans: Yes, they are, but under the general permission
granted by the Reserve Bank, which are subject to further terms
and conditions. A commercial property includes properties other
than agricultural land/farm house/plantation property.
Q6) Can an NRI let his property on rent in India,
if not in use?
Ans: Yes, Reserve Bank has granted permission
for letting out an immovable property in India to NRIs.
