TMI BlogForeign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2018X X X X Extracts X X X X X X X X Extracts X X X X ..... o. FEMA 21/ 2000-RB dated May 3, 2000, as amended from time to time, the Reserve Bank of India makes the following regulations, namely: - 1. Short title and commencement:- i) These Regulations may be called the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2018. ii) They shall come into force from the date of their publication in the Official Gazette. 2. Definitions:- In these Regulations, unless the context otherwise requires - (a) 'Act' means the Foreign Exchange Management Act, 1999 (42 of 1999); (b) An Authorised Dealer' means a person authorised as an authorised dealer under sub- section (1) of section 10 of the Act; (c) Non-Resident India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or by any other mode other than those specifically permitted under this clause. (b) acquire any immovable property in India other than agricultural land/ farm house/ plantation property by way of gift from a person resident in India or from an NRI or from an OCI, who in any case is a relative as defined in section 2(77) of the Companies Act, 2013 ; (c) acquire any immovable property in India by way of inheritance from a person resident outside India who had acquired such property (a) in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations or (b) from a person resident in India; (d) transfer any immovable property in India to a person residen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bank. 5. Purchase/ sale of Immovable Property by Foreign Embassies/ Diplomats/ Consulate Generals:- A Foreign Embassy/ Diplomat/ Consulate General may purchase/ sell immovable property in India other than agricultural land/ plantation property/ farm house provided (i) clearance from Government of India, Ministry of External Affairs is obtained for such purchase/ sale, and (ii) the consideration for acquisition of immovable property in India is paid out of funds remitted from abroad through banking channels. 6. Joint acquisition by the spouse of an NRI or an OCI:- A person resident outside India, not being a Non-Resident Indian or an Overseas Citizen of India, who is a spouse of a Non-Resident Indian or an Overseas Citizen of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : (a) the property should not be located in and around restricted/ protected areas so notified by the Central Government and cantonment areas; (b) the person submits a declaration to the Revenue Authority of the district where the property is located, specifying the source of funds and that he/ she is residing in India on LTV; (c) the registration documents of the property should mention the nationality and the fact that such person is on LTV; (d) the property of such person may be attached/ confiscated in the event of his/ her indulgence in anti-India activities; (e) a copy of the documents of the purchased property shall be submitted to the Deputy Commissioner of Police (DCP)/ Foreigners Registration Office (FRO)/ Foreigner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the event of failure in repayment of external commercial borrowing availed by a person resident in India under the provisions of the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, as amended from time to time, a bank which is an authorised dealer may permit the overseas lender or the security trustee (in whose favour the charge on immovable property has been created to secure the ECB) to sell the immovable property on which the said loan has been secured only to a (by the) person resident in India and to repatriate the sale proceeds towards outstanding dues in respect of the said loan and not any other loan. 9. Prohibition on acquisition or transfer of immovable property in India by citizen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bank in this regard, create a mortgage on an immovable property in India owned by an NRI or an OCI, being a director of a company outside India, for a loan to be availed by the company from the said overseas lender. Provided (a) the funds shall be used by the borrowing company only for its core business purposes overseas; (b) in case of invocation of charge, the Indian bank shall sell the immovable property to an eligible acquirer and remit the sale proceeds to the overseas lender. (iv) A person resident outside India who has acquired any immovable property in India in accordance with foreign exchange laws in force at the time of such acquisition or with the general or specific permission of the Reserve Bank may transfer such p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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