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Refund of Purchase Consideration on Account of Non-allotment of Flats/
Plots/ Cancellation of Bookings/ Deals in respect of Immovable Property
Purchased by NRIs/ PIOs in India
A.P.
(DIR Series) Circular No. 46 dated 12th November 2002
Attention
of authorised dealers is invited to paragraph 3 (i) of Schedule 1 to Reserve
Bank of India. Notification No. FEMA 5/ 2000-RB dated May 3, 2000 in terms of
which, refund of application/ earnest money made by the house building agencies
to Non-Resident Indians (including Persons of Indian Origin) on account of non-
allotment of flat/ plot, together with interest, if any (net of income tax
payable thereon), is permitted to be credited to NRE A/c. of the account holder
provided the original payment is made out of NRE/ FCNR account of the account
holder or from remittance received from outside India through normal banking
channels and the authorised dealer is satisfied about the genuineness of the
transaction.
2. With a view to allow credit to NRE/
FCNR account of refund of purchase consideration by seller on account of
cancellation of bookings/ deals for purchase of residential, commercial
property. Reserve Bank has issued Notification No. FEMA 64/ 2002-RB dated June
29, 2002 (copy enclosed) amending the above Notification. Accordingly, it will
be in order for authorised dealers to allow Non-Resident Indians/ Persons of
Indian Origin to credit refund of application/earnest money/ purchase
consideration made by the housing building agencies/ seller on account of
non-allotment of flat/ plot/ cancellation of bookings/ deals for purchase of
residential, commercial property, together with interest, if any (net of income
tax payable thereon), to NRE/ FCNR account, provided, the original payment was
made out of NRE/ FCNR account of the account holder or remittance from outside
India through normal banking channels and the authorised dealer is satisfied
about the genuineness of the transaction.
3. Sub-paragraph (i) of paragraph 3 of
Schedule 1 of the Notification No. FEMA 5/ 2000-RB dated May 3, 2000 viz.
Foreign Exchange Management (Deposit) Regulations, 2000 may be substituted as
indicated in the copy of the Notification enclosed.
4. Authorised Dealers may bring the
contents of this circular to the notice of their constituents concerned.
5
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).
FEMA
Notification No. 64/ 2002 - RB dated June 29, 2002
In
exercise of powers conferred by clause (f) 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 (Deposit) Regulations 2000, namely: -
1.
(i)
These Regulations may be called the Foreign Exchange Management (Deposit)
(Amendment) Regulations 2002.
(ii)
They shall come into force on their publication in the Official Gazette.
2. In the Foreign Exchange Management
(Deposit) Regulations 2000, sub-para (i) of para 3 of Schedule 1 to RBI
Notification No. FEMA. 5/ 2000 - RB dated 3rd May 2000, shall be
substituted as under: -
�Refund of application/
earnest money/ purchase consideration made by the house building agencies/
seller on account of non-allotment of flat/ plot/ cancellation of bookings/
deals for purchase of residential/ commercial property, together with interest,
if any (net of income tax payable thereon), provided the original payment was
made out of NRE/ FCNR account of the account holder or remittance from outside
India through normal banking channels and the authorised dealer is satisfied
about the genuineness of the transaction.
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