[Remy-Ireland]

Press Advisory on Purchase of Properties by Foreigners in India.


As per Exchange Control Manual of Reserve Bank of India (RBI), foreigners desirous to aquire properties in India are required to take prior permission from RBI. Besides, the current Indian visa regime does not have any provision like 'right to abode' or 'right to settle permanently' in India without aquiring Indian Citizenship.

Only such foreign nationals who have been registered as PIOs or OCIs for which they will have to submit proof of "PIO Card" or "OCI Registration Certification" issued by competent Indian Missions/Posts abroad are allowed to aquire properties other than agriculture and plantation, at par with NRIs.

High Commission of India
30-07-2007

http://www.hcilondon.net/

[Remy-Ireland]

Originally Posted by Remy-Ireland Press Advisory on Purchase of Properties by Foreigners in India. As per Exchange Control Manual of Reserve Bank of India (RBI), foreigners desirous to aquire properties in India are required to take prior permission from RBI. Besides, the current Indian visa regime does not have any provision like 'right to abode' or 'right to settle permanently' in India without aquiring Indian Citizenship. Only such foreign nationals who have been registered as PIOs or OCIs for which they will have to submitproof of "PIO Card" or "OCI Registration Certification" issued by competent Indian Missions/Posts abroad are allowed to aquire properties other than agriculture and plantation, at par wih NRIs. High Commission of India 30-07-2007 http://www.hcilondon.net/

Hi All,

I have posted the latest press release in full from HCI about property purchase in India. It goes with what Douglas and others have been saying for quite some time now. This has come from the 'horses mouth' and hopefully everyone that reads it will 'now take heed.'

I also hope that everyone will play their part in telling others about this and hopefully prevent them from being misled and mis-informed like so many have been before them.

Regards,
Remy

[Kinrara]

Originally Posted by Remy-Ireland Press Advisory on Purchase of Properties by Foreigners in India. "As per Exchange Control Manual of Reserve Bank of India (RBI), foreigners desirous to aquire properties in India are required to take prior permission from RBI". High Commission of India 30-07-2007 http://www.hcilondon.net/

What does this sentence actually mean?

[Douglas M]

Originally Posted by Kinrara What does this sentence actually mean?

Hi Kinrara,

The press release means what it says, but it is technically incorrect as it fails to state that the general permission is also available via FEMA for resident FNs ie resident FNs dont require direct permision from RBI to purchase immovable property in india.

Unfortunately, as i have said before it doesnt really matter what the rules say in india, it is the perception of and interpretation of those rules by the officer concerned that decides the outcome.

With this in mind, we all await the results of the d of e investigation.

regards
douglas

[Remy-Ireland]

Originally Posted by Remy-Ireland Press Advisory on Purchase of Properties by Foreigners in India. As per Exchange Control Manual of Reserve Bank of India (RBI), foreigners desirous to aquire properties in India are required to take prior permission from RBI. Besides, the current Indian visa regime does not have any provision like 'right to abode' or 'right to settle permanently' in India without aquiring Indian Citizenship. Only such foreign nationals who have been registered as PIOs or OCIs for which they will have to submit proof of "PIO Card" or "OCI Registration Certification" issued by competent Indian Missions/Posts abroad are allowed to aquire properties other than agriculture and plantation, at par with NRIs. High Commission of India 30-07-2007 http://www.hcilondon.net/

The High Commission Of India have now updated their Press Release by adding the following paragraph,

Foreign National who is a person resident in India can purchase immovable property in India but the person concerned would have to obtain the approvals, and fulfil the requirements if any, prescribed by the authorities, such as the concerned State Government, etc. However a foreign national of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of Reserve Bank of India. Such requests are considered by Reserve Bank in consultation with the Government of India.

Further information can be obtained at: www.rbi.org.in

[Douglas M]

Originally Posted by Remy-Ireland The High Commission Of India have now updated their Press Release by adding the following paragraph, Foreign National who is a person resident in India can purchase immovable property in India but the person concerned would have to obtain the approvals, and fulfil the requirements if any, prescribed by the authorities, such as the concerned State Government, etc. However a foreign national of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of Reserve Bank of India. Such requests are considered by Reserve Bank in consultation with the Government of India. Further information can be obtained at: www.rbi.org.in

Hi Remy,

I am surprised at the speed of that amendment and although now technically more correct, i feel the original intention to convey a warning to FNs has now been lost.

In order to convey the true picture they should add in the following-

Although the FEMA permits resident FNs to purchase immovable property in india, for the past year the immigration dept have issued few visas that would enable a FN to achieve residency status and thus most FNs are prevented from purchasing immovable property in practice.

For the few that do receive long term visas and are physically in the country for the qualifying period they must also fulfill the intention to stay for an undetermined period of time condition .

For the even smaller number of FNs who can fulfill both these conditions and subsequently sign a sales deed and pay the full consideration, certain states such as goa are refusing to register the said deed or to recognise the sale .

If by some miracle the FN manages to get through all of these hurdles the enforcement team from the RBI can review the file of the FN at any time and request they prove residency or other matters many years after the original event. If the FN cannot prove residency many years after the event they can be fined, the sales deed invalidated or the property confiscated. If penalised and the fines are not paid or the property surrendered the FN can be incarcerated in a civil prison.

The FN has no right of access into india even if they own property there and any visa can be withdrawn or refused at any time. Under a 1947 act any FN can be deported without the authorities giving any reason for the deportation.

Welcome to goa.

[Remy-Ireland]

Originally Posted by Douglas M Hi Remy, I am surprised at the speed of that amendment and although now technically more correct, i feel the original intention to convey a warning to FNs has now been lost. In order to convey the true picture they should add in the following- Although the FEMA permits resident FNs to purchase immovable property in india, for the past year the immigration dept have issued few visas that would enable a FN to achieve residency status and thus most FNs are prevented from purchasing immovable property in practice. For the few that do receive long term visas and are physically in the country for the qualifying period they must also fulfill the intention to stay for an undetermined period of time condition . For the even smaller number of FNs who can fulfill both these conditions and subsequently sign a sales deed and pay the full consideration, certain states such as goa are refusing to register the said deed or to recognise the sale . If by some miracle the FN manages to get through all of these hurdles the enforcement team from the RBI can review the file of the FN at any time and request they prove residency or other matters many years after the original event. If the FN cannot prove residency many years after the event they can be fined, the sales deed invalidated or the property confiscated. If penalised and the fines are not paid or the property surrendered the FN can be incarcerated in a civil prison. The FN has no right of access into india even if they own property there and any visa can be withdrawn or refused at any time. Under a 1947 act any FN can be deported without the authorities giving any reason for the deportation. Welcome to goa.

Hi Douglas,

I agree with what your saying...........i wonder is the speed of the ammendment to do with an influx of angry FNs e-mailing HCI.......not that it will make much differance in the sweet by and by.

Kind Regards,
Remy

[TONY P]

Originally Posted by Remy-Ireland Hi Douglas, I agree with what your saying...........i wonder is the speed of the ammendment to do with an influx of angry FNs e-mailing HCI.......not that it will make much differance in the sweet by and by. Kind Regards, Remy

Hi All
I think that they have done this to save problems further down the line, at the moment they appear to be heavy handed and threats of confiscation don't look very good in the press, the world is beginning to take notice and once the press get on the case who knows where it may end, so better to bite the bullet now and be able to say that they have warned about the correct procedures for future potential purchasers.
Those who are there are probably going to get a smacked wrist in the main, but they will have to make an example of the some cases to remove the undesirables.
India is keen to clean up it's political act and Goa is a very small state, that brings in lots of foreign currency, but it doesn't take a lot to stop tourists from going to somewhere that they percieve is a bad place to be.
I can't see the Central Government allowing this to happen. 450,000 tourists at approx spend of £300 each while they are there = £135,000,000 = INR10,800,000,000, @80 to £, it's probably a lot more, that's a lot of Noff.
If things have been done illegally and have involved bribery and corruption or conning people out of money or property then those people had better watch out and rightly so, but the witch hunt started at local level, to win votes, but now central government has got involved and those who shouted have got their wish, an investigation, which won't stop at FNs.
Be careful what you wish for, it may come true.
TP

[noni]

Originally Posted by TONY P Hi All I think that they have done this to save problems further down the line, at the moment they appear to be heavy handed and threats of confiscation don't look very good in the press, the world is beginning to take notice and once the press get on the case who knows where it may end, so better to bite the bullet now and be able to say that they have warned about the correct procedures for future potential purchasers. Those who are there are probably going to get a smacked wrist in the main, but they will have to make an example of the some cases to remove the undesirables. India is keen to clean up it's political act and Goa is a very small state, that brings in lots of foreign currency, but it doesn't take a lot to stop tourists from going to somewhere that they percieve is a bad place to be. I can't see the Central Government allowing this to happen. 450,000 tourists at approx spend of £300 each while they are there = £135,000,000 = INR10,800,000,000, @80 to £, it's probably a lot more, that's a lot of Noff. If things have been done illegally and have involved bribery and corruption or conning people out of money or property then those people had better watch out and rightly so, but the witch hunt started at local level, to win votes, but now central government has got involved and those who shouted have got their wish, an investigation, which won't stop at FNs. Be careful what you wish for, it may come true. TP

Hi Tony,
What you say is true, read HolidayHometruths site, or whatever it is called
there are a lot of people saying they are not going to going after their next holiday - those who have booked are in the ........
Like your wife's hat for the Palace.
Lightening again, must turn off.
love Noni

[Douglas M]

Originally Posted by TONY P Hi All I think that they have done this to save problems further down the line, at the moment they appear to be heavy handed and threats of confiscation don't look very good in the press, the world is beginning to take notice and once the press get on the case who knows where it may end, so better to bite the bullet now and be able to say that they have warned about the correct procedures for future potential purchasers. Those who are there are probably going to get a smacked wrist in the main, but they will have to make an example of the some cases to remove the undesirables. India is keen to clean up it's political act and Goa is a very small state, that brings in lots of foreign currency, but it doesn't take a lot to stop tourists from going to somewhere that they percieve is a bad place to be. I can't see the Central Government allowing this to happen. 450,000 tourists at approx spend of £300 each while they are there = £135,000,000 = INR10,800,000,000, @80 to £, it's probably a lot more, that's a lot of Noff. If things have been done illegally and have involved bribery and corruption or conning people out of money or property then those people had better watch out and rightly so, but the witch hunt started at local level, to win votes, but now central government has got involved and those who shouted have got their wish, an investigation, which won't stop at FNs. Be careful what you wish for, it may come true. TP

Hi Tony,

I think the indian authorities see tourists and long termers as two separate issues, where we see one as an extension of the other.

India also has a pattern of self destructive behavior (as does africa) so dont underestimate their capacity to do something totally irrational.

The dof e enquiry has to fund itself and make a profit, so FNs will inevitably be hit regardless of their compliance.

regards
douglas

[catpat123]

Originally Posted by noni Hi Tony, What you say is true, read HolidayHometruths site, or whatever it is called there are a lot of people saying they are not going to going after their next holiday - those who have booked are in the ........ Like your wife's hat for the Palace. Lightening again, must turn off. love Noni

I tried to refer someone to this site, just to say that Keith got his money back, and got ............. EDITED

I was only trying to help someone who wanted to know what to do if they were stuck halfway through the "buying" process and I thought asking for their money back was a good start.

Looks like I'm getting as notorious as the rest of you.

[Remy-Ireland]

Originally Posted by catpat123 I tried to refer someone to this site, just to say that Keith got his money back, and got ............. EDITED I was only trying to help someone who wanted to know what to do if they were stuck halfway through the "buying" process and I thought asking for their money back was a good start. Looks like I'm getting as notorious as the rest of you.

Da Da DAAAA...........and so it begins.......

[TONY P]

Originally Posted by Douglas M Hi Tony, I think the indian authorities see tourists and long termers as two separate issues, where we see one as an extension of the other. India also has a pattern of self destructive behavior (as does africa) so dont underestimate their capacity to do something totally irrational. The dof e enquiry has to fund itself and make a profit, so FNs will inevitably be hit regardless of their compliance. regards douglas

Hi Douglas
First para try past tense throughout
Second para have to agree but not where money is concerned
Third para of course, but I think the big pay day will come once they have slapped the little people.
Regards
Tony

[TONY P]

Originally Posted by catpat123 I tried to refer someone to this site, just to say that Keith got his money back, and got ............. EDITED I was only trying to help someone who wanted to know what to do if they were stuck halfway through the "buying" process and I thought asking for their money back was a good start. Looks like I'm getting as notorious as the rest of you.

Hi Catpat
By whom and why?
You were trying to refer someone from where?
Maybe a Mod can help you.
Regards
Tony P

[TONY P]

Originally Posted by Remy-Ireland Da Da DAAAA...........and so it begins.......

Hi Remy
Considering some of the things that have been written on this site I find this very strange
Maybe 'You Know Who' have taken over the Mods
Tony P