Following information that foreign nationals are buying immovable property illegally in some parts of the country, the Finance Ministry on Thursday advised all authorities to be “extra vigilant” on the matter.
“….all, including the authorities concerned in the State governments, are hereby advised to be extra vigilant in such matters and satisfy themselves about the eligibility under in Foreign Exchange Management Act (FEMA) before registering sale or purchase of immovable property in India,” the official note said.
The enquiries may include both the intending buyers and sellers.
The relevant travel documents and the nature of visa may also be verified before registering such sale/purchase, it said, adding where appropriate, the authorities may consider reviewing registration of sale/purchase already made to determine their compliance with legal requirements.
It stated, “It has also been observed that foreign nationals coming to India and staying beyond 182 day on a tourist or other visa meant for a certain period are illegally acquiring immovable property in India in violation of the extant rules and regulations under FEMA.”
The Ministry clarified that as per the FEMA provisions, an Indian citizen resident outside India and a Person of Indian Origin resident outside India may acquire immovable property in India other than agricultural land, plantation or a farm house.
A foreign company which has established a Branch Office or other place of business in India can acquire immovable property in India which is necessary for or incidental to carrying on such activity.
Besides this, a foreign national who is residing in India for more than 182 days during the course of the preceding financial year for taking up employment or carrying on business/vocation or for any other purpose indicating his intention to stay for an uncertain period can acquire immovable property in India.
The note added to be treated as a person resident in India under FEMA a person has not only to satisfy the condition of the period of stay but also his purpose of stay as well as the type of Indian visa granted to him to clearly indicate the intention to stay in India for an uncertain period. In addition, person acquiring immovable property have to fulfil the requirements, if any, prescribed by the State authorities, it said.
