An Indian Citizen who stays abroad for employment/ carrying on business or vacation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in U.N. organizations and officials deputed abroad by Central/ State Government and Public Sector Undertakings on temporary assignments are also treated as non-resident) Non-resident foreign citizens of Indian Origin are treated on par with non-resident Indian citizens.

A foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal), is deemed to be of Indian origin if,
He/She held an Indian passport at any time, OR
He/She or their parents or paternal grand-father was a citizen of India by virtue of the Indian Constitution.

No.

Yes. However, Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property in India for their bona fide residential purpose.
They are, therefore, not required to obtain separate permission of Reserve Bank.

The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NTE/FCNR accounts maintained with banks in India.

They are 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 or final payment of purchase consideration along with a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid.

Yes. Reserve Bank has granted permission for sale of such property. However, where the property is purchased by another foreign citizen of Indian origin, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.

In respect of residential properties purchased on or after 26th May, 1993, Reserve Bank considers applications for repatriation of sale proceeds up to the consideration amount remitted in foreign exchange for the acquisition of the property for two such properties. The balance amount of sale proceeds if any or sale proceeds in respect of properties purchased prior to 26th May, 1993, will have to be credited to the ordinary non-resident rupee account of the owner of the property.

Applications for repatriation of sale proceeds are considered provided the sale takes place after three years from the date of final purchase deed or from the date of payment of final installment of consideration amount, whichever is later.

Yes. Reserve Bank has granted general permission to foreign citizens of Indian origin to acquire or dispose of properties up to two houses by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin whether resident in India or not, provided gift tax has been paid.

Yes. Under the general permission granted by Reserve Bank properties other than agricultural land/farm house/plantation property can be acquired by foreign citizens of Indian origin provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchasers' NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.

Yes. Repatriation of original investment in respect of properties purchased by foreign citizens of Indian origin on or after 26th May 1993 will be allowed to be remitted up to the consideration amount originally remitted from abroad provided the property is sold after a period of three years from the date of the final purchase deed or from the date of payment of final installment of consideration amount, whichever is later. Applications for the purpose are required to be made to the Central Office of Reserve Bank within 90 days of the sale of property in form IPI 8.

Yes. Reserve Bank has granted permission for letting out of any immovable property in India. The rental income or proceeds of any investment of such income has to be credited to NRO account.

Reserve Bank has granted permission to certain financial institutions providing housing finance e.g. HDFC,LIC Housing Finance Ltd, etc to grant housing loans to non-resident Indian nationals for acquisition of houses/flats for self-occupation subject to certain conditions.

Authorized dealers have been granted permission to grant loans up to non-resident Indian nationals for acquisition of house/flat for self-occupation on their return to India subject to certain conditions. Repayment of the loan should be made within a period not exceeding 15 years out of inward remittance through banking channels or out of funds held in the investments' NRE/FCNR accounts.

Reserve Bank permits Indian firms/companies to grant housing loans to their employees deputed abroad and holding Indian passport subject to certain conditions.

One will need a guarantor for a loan mainly for collateral security. The guarantor will have to demonstrate appropriate net worth to cover for the loan. Usually one can have a guarantor in any city where the loan issuer has a branch. Talk to loan issuers they will work something out for NRIs and foreign banks.

The Real Estate (Regulation and Development) Act, 2016 (the Act, from hereon) is an initiative by Indian Government to enhance transparency in the real estate related transactions by creating a systematic and a uniform regulatory environment, thereby protecting consumers’ interest and making real estate developers liable for timely completion of projects.

Initially, the bill was supposed to cover only residential projects. On further amendments, commercial projects including shops, offices and buildings were also included.

a. As per the RERA rules, the consumer is entitled to receive information about the sanctioned plan, approved layout plan, stage wise progress of the project, carpet area and facilitation of basic amenities & services such as drinking water, electricity, sanitation etc.

b. The consumers can claim possession of the unit and the association of consumers can collectively claim possession of the common areas as declared by the real estate developer.

c. In case the real estate developer fails to meet the timeline or does not deliver what was promised then the consumer has the right to claim refund of amount paid with prescribed interest and compensation for the same.

a. It is mandatory for the consumers to make payments on time to the real estate developer as per the agreement. He/she is also liable to pay the share of registration charges, municipal taxes, maintenance charges, ground rent, electricity charges, water supply charges etc.

b. Once the real estate developer issue the occupancy certificate, the consumer is required to take possession within two months.

c. The consumer is liable to pay prescribed interest if he/she fails to make timely payments for his purchase.

d. It is mandatory for a consumer to actively participate in the formation of an association, a consumer federal or any cooperative society.

e. A consumer must participate towards the registration of the conveyance deed of the unit.

In order to escalate the responsibility and accountability of real estate developers towards consumers, the RERA has made the following compulsory for them:

a. It is mandatory for the real estate developer to register the project with the RERA and obtain a valid registration number before proceeding.

b. Any kind of marketing, advertising or selling of units is strictly prohibited before the registration of the project.

c. The real estate developer is required to submit all documents related to the project which is considered necessary by the RERA.

d. The real estate developer must deposit 70% of the payment received from the consumers in an escrow account and ensure that the amount is solely used for the development of the project for which it was taken.

e. The real estate developer must adhere to the project plan at all times.

f. Refund the money taken from the consumers with an applicable interest in case the project cannot be completed.

g. Compensate the consumer for the time delay if any.

h. To repair any structural defects in the construction even after 5 years of handover of the project.

The following documents are required while registering a project with RERA:

a. Details of the project such as name, address, type, names and photographs of the promoters etc.

b. Details of the project already launched by the real estate developer and their status (in the preceding 5 years).

c. Approval and commencement certificates obtained from the competent authority for each phase of the project separately. This is to the benefit of both consumer who will firmly know that no changes in the particular phase will be further allowed and the real estate developer who will enjoy the flexibility of changing plans for future phases of the entire project.

d. Sanctioned layout plan, the development plan for the project and details of basic facilities being made available like drinking water, electricity etc.

e. Pro forma of allotment letter, agreement for sale and conveyance deed to be signed with the consumers.

f. Location of the project with clear demarcation of the land for the project.

g. Number, type and carpet areas of units to be sold.

h. The details of open areas if any like terraces, balconies etc.

i. Details of associated engineers, contractors, architects and intermediaries in the project.

j. A declaration stating that the land of the project is verified &authenticated and the developer has a legal title to it.

k. A written declaration stating that the project will be completed within specified period of time and 70% of the received funds from the consumers will be deposited in a dedicated escrow account and this amount will be used only for that particular project.