Acquisition or transfer of Immovable Property in India

Any person who is a Non-Resident indian or Overseas citizen of india or any person resident outside india cannot acquire any immovable property in india except if he has acquired the immovable property in accordance with the Foreign Exchange Management (Acquisition and transfer of Immovable Property in India) Regulations, 2018.

The person resident outside india or NRI or OCI shall take into account the prohibitions, mode of payment, conditions, etc for acquisition of immovable property in india to ensure that the acquisition is permissible.

Regulations Applicable

Any Acquisition or transfer of property by a person resident outside india or a Non Resident indian or OCI Cardholders shall be regulated by the Foreign Exchange Management (Acquisition & transfer of immovable property in india) Regulations 2018

Acquisition of Immovable Property by Non – resident Indian (NRI)

Type of Immovable property	Permissibility	Explanation
Acquisition of Agricultural land or plantation property or a farm house	Not permissible by way of purchase or gift	Acquisition by NRI or OCI of the Agricultural land or plantation property or a farm house by way of purchase or gift is not permissible
Acquisition by way of Purchase	permissible	Acquisition by way of Purchase permissible An NRI or an OCI is allowed to acquire any immovable property (other than agricultural land/ plantation property/ farm house) by way of purchase. in India
Acquisition by way of gift	Permissible from Relative resident person / NRI / OCI	An NRI or an OCI is allowed to acquire any immovable property (other than agricultural land/ plantation property/ farm house) by way of gift from any person resident in India or from an NRI or an OCI being his relative
Acquisition by way of inheritance	Permissible	An NRI or an OCI is allowed to acquire any immovable property in India by way of inheritance from a person resident outside India or a person resident india. In case the property is acquired by way of inheritance from a person resident outside, then the property must be acquired by the transferee in accordance the provisions of the existing law relating to foreign exchange at the time of acquisition.

Transfer of Immovable Property by Non – resident Indian (NRI)

Transferred to	Permissibility	Explanation
Person resident in india	Permissible	Transfer of any immovable property in India by an NRI or an OCI to a person resident in India is fully permissible;
NRI / OCI other than by way of gift	Permissible (other than agricultural land or plantation property or farm house)	Transfer of any immovable property (other than agricultural land or plantation property or farm house) by NRI or an OCI to an NRI or OCI for consideration .is permissible
NRI / OCI by way of gift	Permissible only to relative (other than agricultural land or plantation property or farm house)	Transfer of any immovable property (other than agricultural land or plantation property or farm house) by NRI or an OCI to an NRI or OCI as a gift .is permissible, only if the transferee is relative to the NRI or OCI

Mode of Payment

The Payment of immovable property must be made out of funds received in India through banking channels by way of inward remittance from any place outside India or by debit to their NRE/ FCNR (B)/ NRO account

The Payment made by way of traveller’s cheque or by foreign currency notes or by other mode is not permissible.

Acquisition or transfer of immovable property in India - Prohibitions

The Citizens / Legal entities of certain countries are not allowed to acquire or transfer any immovable property in india without prior permission of the Reserve Bank.

Citizens / Legal entities of such countries however are allowed to acquire property on lease for not exceeding five years.

The countries on which the above prohibition is levied are as follows :

• Pakistan
• Bangladesh
• Sri Lanka
• Afghanistan
• China
• Iran
• Nepal
• Bhutan
• Macau
• Hong Kong
• Democratic People’s Republic of Korea

How Rajput Jain and Associates can Assist

We offer all kinds of Consultancy, Compliances and Registration Services in relation to Acquisition of property in or outside india. We have empanelled various experts to provide the expert advisory, Registration and Compliances services for Acquisition of property in or outside india.

The services that we offer in relation to Acquisition of property in or outside india includes the following:

• FEMA Compliances related to acquisition of immovable property in or outside india.
• Reporting to RBI in relation to acquisition of immovable property in or outside india, if required
• Drafting of documents for reporting to RBI
• Advising various routes for acquisition of immovable property in or outside india,
• Liaisoning with AD Bank and RBI in relation to acquisition of immovable property in or outside india,