Find answers to commonly asked question about Nidhi Global

According to section 6(4) of the FEMA, a person resident in India can hold, own, transfer or invest in any immovable property situated outside India if such property was acquired, held or owned by him/ her when he/ she was resident outside India or inherited from a person resident outside India.
A resident individual can send remittances under the Liberalized Remittance Scheme (LRS) for purchasing immovable property outside India. In case members of a family pool their remittances to purchase a property, then the said property should be in the name of all the members who make the remittances.
The prohibition of a resident acquiring property outside India is not applicable if: a. The resident is a foreign national
b. The property was acquired before July 8, 1947 and continued to be held after obtaining permission
c. If it is acquired on a lease not exceeding five years

Immovable property can be acquired outside India:
a. Under section 6(4) of FEMA.
b. As an inheritance/ gift from a person (i) referred to in sec 6(4) of FEMA; or (ii) who has acquired it prior to July 8, 1947 (iii) who has acquired such property in accordance with the foreign exchange provisions in force at the time of such acquisition.
c. Purchased with balances in the Resident Foreign Currency (RFC) account of the resident.
d. As a gift from persons at (b) & (c) above, provided he is a relative of such persons.
e. Purchased with remittances made under the Liberalized Remittance Scheme (LRS).
f. Jointly with a relative provided there are no outflow of funds from India.
g. By an Indian company having overseas offices, for housing its business or for residence of staff.

Foreign Embassy/ Diplomat/ Consulate General, can purchase/ sell immovable property (other than agricultural land/ plantation property/ farmhouse) in India provided –
a.   Clearance from the Government of India, Ministry of External Affairs is obtained for such purchase/sale, and
b.   The consideration for acquisition of immovable property in India is paid out of funds remitted from abroad through banking channels.

Payment for immovable property has to be received in India through banking channels and is subject to payment of all taxes and other duties/ levies in India. The payment can also be made out of funds held in NRE/ FCNR(B)/ NRO accounts of the NRIs/ OCIs. Payments should not be made through travelers’ cheque and foreign currency notes.

Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Macau, Hong Kong or Democratic People’s Republic of Korea (DPRK), irrespective of their residential status, cannot, without prior permission of the Reserve Bank, acquire or transfer immovable property in India, other than on lease, not exceeding five years. This prohibition shall not be applicable to an OCI.
b.   Foreign nationals of non-Indian origin resident in India (except 11 countries listed at (a) above) can acquire immovable property in India.
c.   Foreign nationals of non-Indian origin resident outside India can acquire/ transfer immovable property in India, on lease not exceeding five years and can acquire immovable property in India by way of inheritance from a residence

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