Investment in Immovable Property In India :
section 3.1 of FERA generally governs the matters relating to immovable properties and the work relating to permissions for purchase etc. of immovable properties is centralised in the Foreign Investment Division at Central Office of Reserve Bank of India at Mumbai.
|Foreign Citizen||Indian Citizen|
|Indian Origin||Non-Indian Origin||Resident||Non-Resident|
|Investment made from local funds||Investment made from foreign funds||Investment made from local funds||Investment made from foreign funds||No Approval is required under FERA||Investment made from local funds||Investment made from foreign funds|
|Prior RBI permission required||Prior permission of RBI not required||Permission generally not given by RBI||Prior permission from RBI required||–||No approval necessary under FERA||Declaration in form IPI-7 necessary if repatriation facility required|
|Application in form IPI-1||Declaration in form IPI-7||–||Application in form IPI-1||–||–||–|
|No repatriation of sale proceeds||Repatriation of original investment allowed after 3 years on applying to RBI in form IPI-B||–||No repatriation of sale proceeds||–||–||Repatriation of original investment allowed on applying to RBI in form IPI-8|
Foreign Citizens (regardless of Residence):
- Of Indian Origin.
- Of Non-Indian Origin.
Foreign citizens of Indian origin
For foreign citizens of Indian origin, different procedures have been laid down depending on :
a) Whether they invest their money in the form of Foreign Currency remitted from abroad through normal banking channels or from funds withdrawn from the NRE/FCNR accounts, or
b) From local funds in Rupees.