NRIs, OCIs Don’t Need Prior Approval To Buy Or Sell Immovable Property In India: RBI
NRIs do not need prior approval to buy or sell immovable property in India, clarifies RBI
Mumbai:
The Reserve Bank of India (RBI) on Wednesday clarified that non-resident Indians (NRIs) and Overseas Citizens of India (OCIs) do not require prior approval to buy or sell immovable property such as a home in the country.
“At present, NRIs and OCIs are governed by the provisions of the Foreign Exchange Management Act (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. ” RBI said in a statement.
The central bank issued the clarification as it has received a large number of queries based on media reports on the Supreme Court’s decision whether prior approval of RBI is required for acquisition or transfer of immovable property in India by OCIs.
RBI clarified, “It is clarified that the judgment dated February 26, 2021 of the concerned Supreme Court, relating to the provisions of FERA, 1973, has been set aside under section 49 of FEMA, 1999.”
