FOR OVERSEAS INDIAN INVESTORS


Do NRI require permission of Reserve Bank to acquire immovable property in India?
No. NRI’s do not require any permission to acquire any immovable property in India other than agricultural / plantation property or a farm house.

Do NRI's require permission of Reserve Bank to transfer immovable property in India?
No. NRI do not require any permission to transfer any immovable property in India. Permission is required only in the case of transferring of agricultural or plantation property or farm house to another citizen of India NRI or PIO.

Do PIO require permission of Reserve Bank to purchase immovable property in India for their residential use?
Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property other than agricultural land/farm house/plantation property, in India. They are, therefore, not required to obtain separate permission of Reserve Bank or file any declaration.

How should the purchase consideration for immovable property be paid by PIO under the general permission?
The purchase consideration should be met either out of inward remittances in foreign exchange, through normal banking channels or out of funds from any non resident accounts maintained with banks in India.

Can such property be sold without the permission of Reserve Bank?
Yes. Reserve Bank has granted general permission for sale of such property. However, where another foreign citizen of Indian origin purchases the property, funds towards the purchase consideration should either be remitted to India or paid out of balances in non-resident accounts maintained with banks in India.

Can sale proceeds of such property, if and when sold, be remitted out of India?
In the event of sale of immovable property other than agricultural land/farm house/plantation property in India by a NRI or PIO, the authorized dealer may allow repatriation of the sale proceeds outside India, provided all the following conditions are satisfied: –

What other facilities are available for repatriation?
Authorised dealers can allow remittance up to USD 1 million for any purpose, per calendar year from balances in NRO accounts subject to payment of applicable taxes. The limit of USD 1 million per year, includes sale proceeds of immovable properties acquired by the NRI/PIO while they were resident in India and held for a period of 10 years and above. In case the property is sold after being held for less than 10 years, remittance can be made if the sale proceeds were held for the balance period in NRO account or in any other eligible instruments. separate permission of Reserve Bank or file any declaration.

Can PIO acquire or dispose of immovable property by way of gift?
Yes. Reserve Bank has granted general permission to foreign citizens of Indian origin to acquire or dispose of immovable properties other than agricultural land/farmhouse/plantation property by way of gift from or to an Indian citizen, NRI or PIO.

Can NRI/PIO rent out the properties (residential/commercial) if not required for immediate use?
Yes. Reserve Bank has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income is eligible for repatriation

Can NRI obtain loans for acquisition of a house/flat for residential purpose or office/showroom for commercial purpose from financial institutions providing housing finance?
Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC, LIC Housing Finance Ltd., etc., to grant housing loans to NRI for acquisition of a house/flat for self occupation subject to certain conditions. The purpose of loan margin money and the quantum of loan will be at par with those applicable to housing loans to residents. Repayment of loan should be made within a period not exceeding 15 years out of inward remittances or out of funds held in the investor’s NRE / FCNR / NRO Accounts.

What are the guidelines for acquisition of agricultural land / plantation property / farmhouse by NRI and foreign citizens of Indian origin?
All requests for acquisition of agricultural land / plantation property / farm house by any person resident outside India may be made to The Chief General Manager, Reserve Bank of India, Central Office, Exchange Control Department, Foreign Investment Division (III), Mumbai 400 001.

GENERAL QUERIES

Can the design/lay out of the apartments/ offices/showrooms be changed?
No, all apartments/offices/showrooms shall be as per design and elevation given by us to ensure that all apartments in the scheme have a similar look and elevation. However, minor internal changes can be made upon request.

Who will maintain the common facilities?
The Developer will maintain the common facilities for the first 2 years at an extra cost. An Association of the owners of the apartment/offices/showrooms will be formed to look after the common facilities. The association shall be run by duly elected members. However, the builder shall help the association maintain the common facilities for the first couple of years. The builder shall also help the association appoint agencies for housekeeping, security and other services.

Have the approvals and legal clearance been obtained?
All necessary approvals from the Ahmedabad Urban Development Authority (AUDA)/AMC/Dist. Panchayat and other concerned competent authorities have been obtained.

Will any commercial activity be permitted in the apartments?
No. Strictly no commercial activity will be allowed within the layout.

How do I obtain a housing/commercial property loan?
Most purchasers, if eligible can obtain housing loans from 80% to 100% of total sales consideration including registration charges. Details of housing loans including application forms for both resident and non resident Indians are available on websites of most housing finance companies. Websites of some leading housing finance companies are given below:

www.utibank.com
www.hdfc.com
www.icicibankhomeloans.com
www.statebankofindia.com
www.citibank.com
www.kotak.com
www.idbi.com
www.bhwbirla.com
www.hsbc.co.in

Our projects have been approved by major financial institutes like UTI, HDFC, Kotak Mahindra, HSBC, BHW Birla, SBI, ICICI etc

Can I pre-close my loan?
Yes. Loans can be pre-closed for a nominal charge before the termination.

The immovable property was acquired by the seller in accordance with the provisions of the Exchange Control Rules/Regulations/Law in force at the time of acquisition, or the provisions of the Regulations framed under the Foreign Exchange Management Act, 1999.

The amount to be repatriated does not exceed (a) the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels or out of funds held in foreign currency non-resident account or (b) the foreign currency equivalent, as on the date of payment, of the amount paid where such payment was made from the funds held in non-resident external account for acquisition of the property; and

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

If I am not eligible for loans can I take a joint loan with any of my relative?
If you are an individual – your spouse, your parents, or even your children can be your co-applicants and their incomes can be clubbed with your income to enhance the amount of loan you are eligible for. It makes sense therefore, that the co-owner of a property has to be a co-applicant, but a co-applicant need not be the co-owner of the property. If you are a partnership or private limited company, any one of the directors or partners can be your co-applicant

What about VAT and Service Tax?
Our business falls into the Value Added Tax (VAT) regime and the gambit of the VAT is applicable to us and as and when it is applicable, it will be charged extra on actual basis. Service Tax is 12.24% on the value of the consideration contract and is applicable.

How is water supplied to the apartments/offices/showrooms?
Water for each apartment/offices/showrooms is supplied through bore wells with sufficient capacity. A minimum of 135 liters is required per person according to the WHO standards and the apartments are equipped to cater to this limit

How is electricity supplied to the apartment/offices/showrooms?
A Torrent Power AEC Connection is taken for the apartment complex on common distribution basis. Each apartment will have its own individual meters.

Are there any hidden costs?
No. There are no hidden costs. All costs applicable are clearly included in the total amount payable and precisely indicated in the price list.

OTHERS

How is a lease agreement created?
A lease agreement can be created:

In cases where the lease contract is from year-to-year / exceeding one year’s rent / reserving yearly rent, then a registered instrument can be created, which both the leaser and the lessee must execute.

What are the charges to be paid while gifting property?
When a gift of property is made, a gift deed needs to be made by a lawyer. Stamp duty on the market value of the property also needs to be paid, as well as the necessary registration charges.