NRIs

Overview

Are you an NRI interested in investing in a property in India?

Well, welcome to Reliaable Developers, Bangalore’s renowned and trusted developer of plotted BDA-approved gated residential layouts. Acknowledged as one of the topnotch property developers, we have developed a life of spectacular opulence over the past eighteen years.

Plotting reliaably is what we do. So, turn your dreams into reality with our finest residential layouts strategically situated around the city. This page is specially created to provide you with solutions to all your queries or concerns regarding investing in properties in India.

Invest in reliaable plots and ameliorate the quality of life!

Why Invest?

Reliaable Developers has been firmly built on providing a customer-focused approach, touchstone quality, pertinacious ethics and timeless meticulousness. Since its inception, Reliaable Developers has observed an escalating growth due to its perennial pursuance for world-class quality. Committed to creating plots where quality meets excellence and dreams turn into reality, Reliaable Developers has built 5000 plus BDA approved plots spread across 500 plus acres. We have redefined the industry in India by emerging as the largest plotted layout developers after BDA in Bangalore, within BDA limits.

Reliaable Developers has been a trusted company for excellence as we strive towards transparency and reliability in every realm of our business activities. Our properties have developed to have defined Bangalore’s skyline by enclosing schools, colleges, hospitals and shopping complexes like Vibgyor School, Bmax Hospital, Mount Zee School, Narayan E-tech and Eurotech etc.Strategically located and intricately designed layouts with above-and-beyond amenities provide you assurance for a best-in-class lifestyle. We believe in achieving client satisfaction by providing highest standards of quality, topmost environmental protection and community welfare

RBI Guidelines

Reliaable Developers aims to provide solutions to every concern on purchase of immovable property in India. Here’s a compiled legal information of the Reserve Bank of India (RBI) Guidelines that would help you invest in immovable properties in India.

The Foreign Exchange Management Act, 1999 (FEMA) empowers the Reserve Bank to frame regulations to prohibit, restrict or regulate the acquisition or transfer of immovable property in India by persons resident outside India. The regulations governing acquisition and transfer of immovable property in India are notified under Notification No. FEMA 21/2000-RB dated May 3, 2000, as amended from time to time. These restrictions do not apply to acquisition or transfer of immovable property in India by a person resident outside India on a lease not exceeding five years.

As per section 6(5) of FEMA, a person resident outside India can hold, own, transfer or invest in any immovable property situated in India if such property was acquired, held or owned by him/ her when he/ she was resident in India or inherited from a person resident in India.

Acquisition/ Transfer By A Non- Resident Indian (NRI)

An NRI can acquire by way of purchase any immovable property (other than agricultural land/ plantation property/ farm house) in India.

Transfer of immovable property
  • a. An NRI may transfer any immovable property in India to a person resident in India;
  • b. An NRI may transfer any immovable property (other than agricultural land or plantation property or farm house) to an NRI or a PIO resident outside India.
Payment for Acquisition of Immovable Property
  • a. NRIs can make payment for acquisition of immovable property (other than agricultural land/ plantation property/ farm house) out of funds received in India through normal banking channels by way of inward remittance from any place outside India or by debit to his NRE/ FCNR (B)/ NRO account;
  • b. Such payments cannot be made either by traveller’s cheque or by foreign currency notes or by other mode except those specifically mentioned above.

Acquisition/ Transfer By A Person Of Indian Origin (PIO)

A PIO resident outside India can acquire by way of purchase any immovable property (other than agricultural land/ plantation property / farm house) in India.

Gift/ Inheritance of immovable property

A PIO resident outside India may acquire

  • a. any immovable property (other than agricultural land/ plantation property/ farm house) in India by way of gift from a person resident in India or an NRI or a PIO resident outside India;
  • b. any immovable property in India by way of inheritance from a person resident outside India who had acquired such property in accordance with the provisions of the foreign exchange law in force or FEMA regulations, at the time of acquisition of the property or from a person resident in India.
Transfer of immovable property

A PIO resident outside India can transfer

  • a. by way of sale, any immovable property in India (other than agricultural land/ farm house/ plantation property), to a person resident in India;
  • b. by way of gift or sale, agricultural land/ farm house/ plantation property in India, to a person resident in India who is a citizen of India;
  • c. by way of gift, residential or commercial property in India, to a person resident in India or to an NRI or to a PIO resident outside India.
Payment for Acquisition of Immovable Property in India
  • a. A PIO resident outside India can make payment for acquisition of immovable property in India (other than agricultural land/ farm house/ plantation property) by way of purchase out of funds received by inward remittance through normal banking channels or by debit to his NRE/ FCNR (B) / NRO account;
  • b. Such payments cannot be made either by traveller’s cheque or by foreign currency notes or by other mode other than those specifically mentioned above.

Acquisition Of Immovable Property By Foreign Embassies/ Diplomats/ Consulate Generals

Foreign Embassy/ Diplomat/ Consulate General, may purchase/ sell immovable property (other than agricultural land/ plantation property/ farm house) 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 the normal banking channels.

Repatriation Of Sale Proceeds Of Immovable Property

A person acquiring property in accordance with section 6(5) of FEMA (reference para 1.2 of Part II) or his successor cannot repatriate outside India the sale proceeds of such immovable property without the prior permission of the Reserve Bank. However, if such a person is an NRI or a PIO resident outside India, he can make a remittance under the facilities available under the Foreign Exchange Management (Remittance of Assets) Regulations, 2000, as amended from time to time.

In the event of sale of immovable property other than agricultural land/ farm house/ plantation property in India by a NRI/ PIO resident outside India, the Authorised Dealer may allow repatriation of the sale proceeds outside India, provided the following conditions are satisfied, namely:

  • a. the immovable property was acquired by the seller in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations 2000;
  • b. the amount to be repatriated does not exceed the amount paid for acquisition of the immovable property received through normal banking channels or out of funds held in FCNR(B) account or NRE account.

In case an immovable property in India has been purchased by an NRI/ PIO out of housing loans availed in terms of Foreign Exchange Management (Borrowing and lending in rupees) Regulations, 2000, as amended from time to time, and the repayments for such loans are made out of remittances received from abroad through banking channels or by debit to the NRE/ FCNR(B) account of the NRI, such repayments may be treated as equivalent to foreign exchange received.

  • c. in the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties

Prohibition On Acquisition Or Transfer Of Immovable Property In India By Citizens Of Certain Countries

Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Macau or Hong Kong cannot, without prior permission of the Reserve Bank, acquire or transfer immovable property in India, other than on lease, not exceeding five years.

For any further queries regarding the latest information or amendments in the guidelines, kindly visit – rbi.org.

FAQs

Who is a Non-resident Indian (NRI)?

A Non-resident Indian (NRI) is a citizen of India who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad.

Who is a Person of Indian Origin (PIO)?

A Person of Indian Origin (PIO) is any person who was born an Indian Citizen but has chosen the citizenship of another country over time. A foreign citizen who

Are Non-resident Indians (NRIs) and Person of Indian Origin (PIOs) allowed to acquire or dispose of immovable property in India?

Under the general permission granted by RBI, all Non-resident Indian’s (NRIs) and Foreign Citizens of Indian origin (PIOs) are allowed to acquire and dispose of immovable property in India, be it Residential or Commercial Property. However, the RBI has a restriction on the purchase of agricultural land/plantation property/farm house in India.

What are the requirements to acquire Agricultural Land/Plantation property or Farmhouses in India by NRIs and PIOs?

Since general permission is not available, the NRI/PIO would have to send a formal request for the same to The Chief General Manager, Reserve Bank of India, Central Office Exchange Control Department, Foreign Investment Division (III), Mumbai 400 001 requesting for approval.

What formalities are required for an NRI or PIO to purchase a property in India?

The purchase consideration should be done either through an inward remittance in foreign exchange through normal banking channels or through the funds available in the NRE/NRO/FCNR accounts maintained with banks in India. The NRI or PIO is required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property along with a certified copy of the documents.

Do you require permission from Reserve Bank to transfer immovable property?

Reserve Bank has granted general permission to transfer immovable property to any Indian Citizen, NRI or PIO. However, funds towards the purchase consideration should either be remitted to India or paid out of balance in NRE / FCNR accounts.

Can the properties be given on rent if not required for immediate use?

Reserve Bank has granted general permission for an NRI or PIO to rent out any immovable property acquired by them. However, the rental proceeds are eligible for repatriation back to the country they are residing in.

Can sale proceeds of immovable property be remitted out of India?

Reserve Bank considers the sale proceeds of immovable property can be remitted out of India to the home country of the NRI or PIO, up to the consideration amount remitted from abroad for the acquisition of the property for two such properties. The property has to be sold after a period of three years from the date of the final purchase.

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