1. Can a name of a foreign national of non-Indian origin
be added as a second holder to a commercial property purchased
by a NRI / PIO?
2. Can a NRI or PIO hold any commercial property in India
acquired by way of inheritance from a person resident in India?
Yes. A person resident outside India can hold commercial property
acquired by way of inheritance from a person resident in India
3. Can a NRI or PIO hold any commercial property in India
acquired by way of inheritance from a person resident outside
With the specific approval of Reserve Bank a person resident outside
India may hold any commercial property in India acquired by way
of inheritance from a person resident outside India, provided
the NRI/PIO had acquired such property in accordance with the
provisions of foreign exchange law in force at the time of acquisition
or under FEMA regulations
4. Are NRIs / PIOs who have purchased commercial property
under general permission required to file any documents with Reserve
Bank of India?
NRIs / PIOs who have purchased commercial property under general
permission are not required to file any documents with the RBI.
5. Can a NRI / PIO transfer by way of mortgage his commercial
property to an authorized dealer / housing finance institution
6. Can a NRI / PIO transfer by way of mortgage his commercial
property in India to a party abroad?
No. He should seek prior approval of RBI.
7. In the case of NRIs residing overseas, can property
be purchased through an agent or through the Power of Attorney?
NRIs staying abroad may enter into an agreement through
their relatives and/or by executing the Power of Attorney in their
favor as it is not possible for them to be present for completing
the formalities of purchase (negotiating with the builder or real
estate developer, drafting and signing of agreements, taking possession,
These formalities can be completed through some known person
who can be given the Power of Attorney for this purpose. Power
of Attorney should be executed on stamped paper before the proper
authorities in the adopted country. Power of Attorney cannot be
drafted on the stamp paper bought in India.
8. While purchasing real estate most developers demand
a Power of Attorney in their favor, is there a way to avoid it?
One can choose not to grant the Power of Attorney (POA) to the
developers. However this will mandate the mailing of all documents
to your foreign residence and associated time delays. A good compromise
is to grant the POA to the builder only for specific necessary
9. Does investment in commercial properties offer good
As far as commercial properties go, the appreciation will, depend
on locations and the overall economic environment for such commercial
properties. Unlike residential, it is also subject to business
risks. There are some high-end commercial properties where your
initial investment would have to be higher and where the returns
can be consistently positive. Good market information for investment
in commercial property is desirable to avoid risks. However, there
is a silver lining for small investors for investment in commercial
properties - through the newly created instruments, the real estate