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FOREIGN EXCHANGE MANAGEMENT (ACQUISITION AND TRANSFER OF IMMOVABLE
PROPERTY IN INDIA) REGULATIONS, 2000
Notification
No. 21 dated 3rd May 2000
G.S.R.
407(E), dated 3.5.2000 - In exercise of the
powers conferred by clause (a) of sub- section 3 of section 6, sub- section (2)
of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the
Reserve Bank of India makes the following regulations, namely: -
(i)
These Regulations may be called the Foreign Exchange Management
(Acquisition and Transfer of Immovable Property in India) Regulations, 2000.
(ii)
They shall come into force on 1st day of June 2000.
In
these Regulations, unless the context otherwise require-
(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)
�a person of Indian origin� means an individual (not being a citizen
of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal
or Bhutan), who
(i)
at any time, held Indian passport; OR
(ii)
who or either of whose father or whose grandfather was a citizen of India
by virtue of the Constitution of Indian or the Citizenship Act, 1955 (57 of
1955);
(d)
�repatriation outside India� means the buying or drawing of foreign
exchange from an authorised dealer in India and remitting it outside India
through normal banking channels or crediting it to an account denominated in
foreign currency or to an account in Indian currency maintained with an
authorised dealer from which it can be converted in foreign currency;
(e)
the words and expressions used but not defined in these Regulations shall
have the same meanings respectively assigned to them in the Act.
A
person resident outside India who is a citizen of India may-
(a)
acquire any immovable property in India other than agricultural/
plantation/ farm house,
(b)
transfer any immovable property in India to a person resident in India,
and
(c)
transfer any immovable property other than agricultural or plantation
property or farm house to a person resident outside India who is a citizen of
India or to a person of Indian origin resident outside India.
A
person of Indian origin resident outside India may-
(a)
acquire any immovable property other than agricultural land/ farm house/
plantation property in India by purchase, from out of (i) funds received in
India by way of inward remittance from any place outside, India, or (ii) funds
held in any non-resident account maintained in accordance with the provisions of
the Act and the regulations made by the Reserve Bank under the Act;
(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 a person resident outside
India who is a citizen of India or from
a person of Indian origin resident outside India;
(c)
acquire any immovable property in India by way of inheritance from a
person resident outside India who had acquired such property 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
from a person resident in India;
(d)
transfer any immovable property in India other than agricultural land /
farm house/ plantation property, by way of sale to a person resident in India;
(e)
transfer agricultural land/ farm house/ plantation property in India, by
way of gift or sale to a person resident in India who is a citizen of India;
(f)
transfer residential or commercial property in India by way of gift to a
person resident in India or to a person resident outside India who is a citizen
of India or to a person of Indian origin resident outside India.
5.
Acquisition of immovable property for carrying on a permitted activity:
A
person resident outside India who has established in India in accordance with the
Foreign Exchange Management (Establishment in India of Branch or Office or other
Place of Business) Regulations, 2000, a branch, office or other place of
business for carrying on in India any activity, excluding a liaison office, may-
(a)
acquire any immovable property in India, which is necessary for or
incidental to carrying on such activity:
Provided
that
(i)
all applicable laws, rules, regulations or directions for the time being
in force are duly complied with; and
(ii)
the person files with the Reserve Bank a declaration in the Form IPI
annexed to these regulations, not later than ninety days from the date of such
acquisition;
(b)
transfer by way of mortgage to an authorised dealer as a security for any
borrowing, the immovable property acquired in pursuance of clause (a)
(a)
A person referred to in sub-section (5) of section 6 of the Act, or his
successor shall not, except with the prior permission of the Reserve Bank,
repatriate outside India the sale proceeds of any immovable property referred to
in that sub-section.
(b)
In the event of sale of immovable property other than agricultural land/
farm house/ plantation property in India by a person resident outside India who
is a citizen of India or a person of India origin, the authorised dealer may
allow repatriation of the sale proceeds outside India, provided the following
conditions are satisfied, namely;
(i)
the immovable property was acquired by the seller 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;
(ii)
the sale takes place after three years from the date of acquisition of
such immovable property or from the date of payment of final instalment of
consideration for its acquisition, whichever is later;
(iii)
the amount to be repatriated does not exceed (a) the amount paid
for acquisition of the immovable property in foreign exchange received through
normal banking channels or out of funds held in Foreign Currency Non-Resident
Account, or (b) the foreign currency equivalent, as on the date of
payment, of the amount paid where such payment was made from the funds held is
Non-Residents External account for acquisition of the property; and
(iv)
in the case of residential property, the repatriation of sale proceeds is
restricted to not more than two such properties.
No
person being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China,
Iran, Nepal or Bhutan without prior permission of the Reserve Bank shall acquire
or transfer immovable property in India, other than lease, not exceeding five
years.
Save
as otherwise provided in Act or Regulations, no person resident outside India
shall transfer any immovable property in India:
Provided
that the Reserve Bank, for sufficient reasons, permit the transfer, subject to
such conditions as may be considered necessary.
Declaration
of immovable property acquired in India by a person resident outside India
Instructions
The
declaration should be completed in duplicate and submitted directly to the Chief
General Manager, Exchange Control Department (Foreign Investment Division-III),
Reserve Bank of India, Central Office, Bombay-400 001 within 90 days from the
date of acquisition of the immovable property.
Documentation
Certified
copies of letter of approval from Reserve Bank obtained under section 6(6) of
FEMA, 1999(42 of 1999).
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1.
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Full
name and address of the acquirer who has acquired the immovable property
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2.
(a)
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Description
of immovable property
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(a)
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2.
(b)
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Details
of its exact location stating the name of the state, town and municipal/
survey number, etc
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(b)
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3.
(a)
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Purpose
for which the immovable property has been acquired
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(a)
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3.
(b)
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Number
and date of Reserve Bank�s permission, if any
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(b)
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4.
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Date
of acquisition of the immovable property
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5.
(a)
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How
the immovable property was acquired i.e., whether by way of
purchase or lease
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(a)
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5.
(b)
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Name,
citizenship and address of the seller/ lessor
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(b)
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5.
(c)
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Amount
of purchase price and sources of funds
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(c)
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I
/ we hereby declare that -
(a)
the particulars given above are true and correct to the best of my/ our
knowledge and belief;
(b)
no portion of the said property has been leased/ rent to, or is otherwise
being allowed to be used by, any other party.
Encls:
(Signature
of Authorised Official)____________________
Stamp
Name
______________________
Designation
________________________
Place
_______________
Date
________________
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