The government is planning to allow the PIO (Persons
of Indian Origin) to buy property in India without mandatory RBI
approval and without the hassles of producing a valid visa. The current
Foreign Exchange Management Act (FEMA) guidelines are also being amended
to remove a 'gender bias' where non-residents whose mother or grandmother
were citizens of India will also be allowed to buy real estate in the
country. The existing rules permit only those PIOs to buy property in
India whose father or grandfather were Indian citizens. The proposal
mooted by the ministry of overseas Indian affairs seeks to make buying
of real estate by NRIs hassle-free and comes as a breather for real
estate firms who can now expect more buyers from abroad at a time when
domestic demand is low.
