NRIs and OCIs will not need prior approval from the Reserve Bank of India (RBI) to buy or sell immovable property in India other than agricultural land, farmhouses, and plantation properties, the central bank said on Wednesday.
RBI issued the clarification following a Supreme Court judgment on the Foreign Exchange Regulation Act (FERA) that resulted in a large number of queries regarding the acquisition of immovable properties by OCIs.
“At present, NRIs/OCIs are governed by provisions of FEMA 1999 and do not require prior approval of RBI for acquisition and transfer of immovable property in India, other than agricultural land/ farmhouse/ plantation property, as per the terms and conditions laid down 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.
RBI clarified the acquisition/transfer of immovable properties in India by Overseas Citizens of India.
“A large number of queries have been received at various offices of the Reserve Bank, based on newspaper reports on a Supreme Court Judgement, 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 Judgement dated February 26, 2021, in Civil Appeal 9546 of 2010 was related to provisions of FERA, 1973, which has been repealed under Section 49 of FEMA, 1999,” the RBI added. (ANI)