<\/span><\/h2>\n\n\n\nThe FEMA framework delineates specific permissions and restrictions for various non-resident categories:<\/p>\n\n\n\n
A. For Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs):<\/strong><\/p>\n\n\n\n\n- Purchase of Immovable Property:<\/strong>\n
\n- NRIs and OCIs can freely acquire residential or commercial property without prior RBI permission.<\/li>\n\n\n\n
- However, prior RBI permission is mandatory for purchasing agricultural land, farmhouses, or plantation property.<\/li>\n\n\n\n
- Payment for such acquisitions must be made through inward remittances from abroad via banking channels or from funds held in Non-Resident External (NRE), Foreign Currency Non-Resident (Bank) [FCNR(B)], or Non-Resident Ordinary (NRO) accounts. Payments using traveler’s cheques or foreign currency notes are not permitted.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Transfer (Sale) of Immovable Property:<\/strong>\n
\n- NRIs and OCIs can transfer (sell) any immovable property (including agricultural land, farmhouses, or plantation property) to a person resident in India without prior RBI permission.<\/li>\n\n\n\n
- They can also transfer any immovable property (excluding agricultural land, farmhouses, or plantation property) to another NRI or OCI.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Gift of Immovable Property:<\/strong>\n
\n- NRIs and OCIs can accept immovable property (excluding agricultural land, farmhouses, or plantation property) as a gift from a person residing in India or a relative (as defined under Section 2(77) of the Companies Act, 2013) who is an NRI or OCI, without RBI permission. The definition of “relative” includes members of a Hindu Undivided Family (HUF), spouse, biological\/step-parents, biological\/step-siblings, and children’s spouses.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Inheritance of Immovable Property:<\/strong>\n
\n- NRIs and OCIs can inherit any immovable property from a person residing in India.<\/li>\n\n\n\n
- They can also inherit immovable property from a person resident outside India, provided the original acquisition of that property complied with the foreign exchange laws in force at the time.<\/li>\n\n\n\n
- Crucially, sale proceeds from inherited property cannot be repatriated outside India without general or specific RBI permission. This is a significant restriction to note for NRIs\/OCIs inheriting property.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
B. For Foreign Nationals of Overseas Origin and Foreign Companies:<\/strong><\/p>\n\n\n\n\n- Spouses of NRIs\/OCIs: <\/strong>Foreign nationals who are spouses of NRIs or OCIs are permitted to jointly acquire one immovable property with their spouse, provided the marriage is registered and has subsisted for a minimum of two years prior to the acquisition.<\/li>\n\n\n\n
- Foreign Companies\/Bodies Corporate: <\/strong>Foreign companies or bodies corporate that have established a place of business, branch office, or liaison office in India in accordance with FEMA regulations are permitted to acquire immovable property in India if it is necessary for carrying out their permitted business activities.<\/li>\n\n\n\n
- Restricted Countries: <\/strong>Citizens or entities from Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Hong Kong, Macau, Nepal, Bhutan, or North Korea require prior RBI permission to acquire immovable property in India, unless it is by way of a lease not exceeding five years.<\/li>\n<\/ul>\n\n\n\n
<\/span>5. Applying for RBI Permission<\/strong><\/span><\/h2>\n\n\n\nWhen RBI permission is required, applications are typically submitted through an Authorized Dealer (AD) bank. AD banks act as intermediaries, facilitating the application process between the applicant and the RBI. The application usually includes:<\/p>\n\n\n\n
\n- A detailed application letter explaining the circumstances of the transaction and providing relevant details of all parties involved.<\/li>\n\n\n\n
- Supporting documentation such as property title deeds, sale agreements, and any other documents specified by the AD bank or the RBI.<\/li>\n<\/ul>\n\n\n\n