“A large number of queries have been received at various Offices of the Reserve Bank, based on newspaper reports on a Supreme Court Judgment, on whether prior approval of RBI is required for acquisition/transfer of immovable property in India by as Overseas Citizen of India OCIs,” the central bank said.
Non-Resident Indians (NRIs) and Overseas Citizen of India (OCIs) don’t require any kind of prior approval or clearance from the Reserve Bank of India (RBI) to buy or sell immovable properties like houses in India, the central bank said recently.
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At present, NRIs/OCIs are required to follow guidlines of FEMA 1999 and do not require prior approval of RBI for acquisition and transfer of immovable property in India, other than agricultural land/ farm house/ plantation property, according to what is stipulated in the terms and conditions in Chapter IX of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, dated October 17, 2019 (as amended from time to time), issued under Section 46 of FEMA 1999,” the RBI said in a statement.
The RBI has issued a clarification on acquisition/transfer of immovable property in India by Overseas Citizen of India (OCIs).
“A large number of queries have been received at various Offices of the Reserve Bank, based on newspaper reports on a Supreme Court Judgment, on whether prior approval of RBI is required for acquisition/transfer of immovable property in India by as Overseas Citizen of India OCIs,” the central bank said.
“It is hereby clarified that the concerned Supreme Court Judgment dated February 26, 2021 in Civil Appeal 9546 of 2010 was related to provisions of FERA, 1973, which has been repealed under Section 49 of FEMA, 1999,” the RBI added.
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