|
Lifting of Lock-in Period for Repatriation of Sale Proceeds of Immovable
Property Situated in India
A.P.
(DIR Series) Circular No. 35 date 1st November 2002
Attention
of authorised dealers is invited to Regulation 6 (b) (ii) of Reserve Bank
Notification No. FEMA 21/ 2000-RB dated May 3, 2000 in terms of which authorised
dealers have been permitted to allow Non-Resident Indians/ Persons of Indian
origin (NRIs/ PIOs) to repatriate sale proceeds of immovable property (other
than agricultural land/ farmhouse/ plantation property) in India, provided the
sale takes place after three years from the date of acquisition of such property
or from the date of payment of final installment of consideration for its
acquisition, whichever is later.
2.
Reserve Bank has issued Notification No. FEMA 65/ 2002-RB dated June 29,
2002 (copy enclosed) amending the Notification
cited above, removing the existing lock-in period for repatriation of the sale
proceeds of immovable property purchased in India by NRIs/ PIOs.
Accordingly, it will be in order for
authorised dealers to allow remittance of sale proceeds of immovable property in
India acquired by NRIs/ PIOs, irrespective of the period for which the property
was held. The sale proceeds allowed to be repatriated should, however, not
exceed the foreign exchange brought in to acquire the property.
3.
Authorised Dealers may bring the contents of this circular to the notice
of their constituents concerned.
4.
The directions contained in the circular have been issued under Section
10 (4) and Section 11 (1) of the Foreign Exchange Management Act, 1999 (42 of
1999).
Foreign
Exchange Management (Acquisition and Transfer of Immovable Property in India)
(Amendment) Regulations, 2002
FEMA
Notification No. 65 dated 29th June 2002
In
exercise of powers conferred by clause (1) 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 amendments to Foreign
Exchange Management (Acquisition and transfer of immovable property in India)
Regulations 2000, namely:
1.
(i)
These Regulations may be called the �Foreign Exchange Management
(Acquisition and Transfer of Immovable Property in India) (Amendment)
Regulations, 2002.
(ii)
They shall come into force on their publication in the Official Gazette.
2.
In the Foreign Exchange Management (Acquisition and Transfer of Immovable
Property in India) Regulations, 2000, the condition No. (ii) of clause (b) of
Regulation 6 shall be deleted and the subsequent conditions (iii) and (iv) shall
be renumbered as (ii) and (iii) respectively.
|