BCP · BANKINGCOMPL

Acquisition and Transfer of IP under FEMA

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Q

Under FEMA, which authority regulates the acquisition and transfer of immovable property in India by persons resident outside India?

A

The Reserve Bank of India (RBI) regulates such transactions under FEMA 1999, with the central government also having powers in certain cases.

Q

Under FEMA, which Schedule regulates acquisition of immovable property in India by persons resident outside India?

A

Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2018.

Q

Can a Non-Resident Indian (NRI) acquire immovable property in India without prior RBI approval?

A

Yes, an NRI can acquire immovable property in India by way of purchase without prior RBI approval, except for agricultural land, plantation property, or farmhouse.

Q

Can a PIO (Person of Indian Origin) purchase agricultural land in India under FEMA?

A

No, PIOs cannot purchase agricultural land, plantation property, or farmhouse in India.

Q

What types of immovable property are prohibited from being purchased by NRIs in India without special permission?

A

NRIs cannot purchase agricultural land, plantation property, or farmhouse in India without prior approval from the RBI or the central government.

Q

What is the maximum number of residential properties an NRI can repatriate sale proceeds from under FEMA?

A

NRI can repatriate sale proceeds from maximum two residential properties.

Q

Can a Person of Indian Origin (PIO) acquire immovable property in India by way of gift?

A

Yes, a PIO can acquire immovable property in India by way of gift from a person resident in India, another NRI, or another PIO, except agricultural land, plantation, or farmhouse.

Q

Can a foreign national of non-Indian origin acquire agricultural land in India even with RBI approval?

A

No, foreign nationals of non-Indian origin cannot acquire agricultural land even with RBI approval.

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