CAN NRI's SELL THEIR IMMOVABLE PROPERTIES IN INDIA WITHOUT RBI’S PERMISSION?
The Reserve Bank of India has granted general permission to non-residents holding Indian passports and foreign citizens of Indian origin, whether resident in India or not, to dispose of by sale or inheritance immovable properties situated in India subject to certain conditions. However, such property can be sold to another foreign national of Indian origin provided funds towards purchase consideration are either remitted to India or paid out of balances in NRE / FCNR accounts.
It is however, necessary for such persons purchasing the property to submit to the Chief General Manager, Exchange Control Department, Foreign Investment Division, Central Office, the Reserve Bank of India, a declaration in the prescribed form IPI-7 within a period of 90 days from the date of purchase.
It is however, necessary for such persons purchasing the property to submit to the Chief General Manager, Exchange Control Department, Foreign Investment Division, Central Office, the Reserve Bank of India, a declaration in the prescribed form IPI-7 within a period of 90 days from the date of purchase.
CAN NRI's ACQUIRE OR DISPOSE PROPERTIES BY WAY OF A GIFT?
NRI's and PIOs can freely acquire immovable property by way of gift either from:
| • | A person resident in India, or |
| • | An NRI, or |
| • | A PIO. |
However, the property can only be commercial or residential. Agricultural land / plantation property / farm house in India cannot be acquired by way of gift. A foreign national of non-Indian origin resident outside India cannot acquire any immovable property in India through gift.
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