MODES OF ACQUISITION OF NRI PROPERTY.!


Dr. Justice A. R. Lakshmanan

A person outside India can hold, own, transfer or invest in immovable property situated in India, It was acquired, held or / owned by such person when he / she was a resident in India or inherited from a person, who was resident in India.

ACQUISITION OF PROPERTY BY PURCHASE

An NRI or a PIO acquire agricultural land or plantation
property or farm house in India by way of purchase.

RESIDENTIAL OR COMMERCIAL PROPERTY..!


General permission of RBI is available to purchase a residential or commercial property in India to a person resident outside India, who is a citizen of India (NRI) and who is a person of Indian Origin (PIO). There is no restriction on number of residential or commercial property that NRI or PIO can purchase under the general permission.

However, name of a foreign national of non Indian origin can not be added as a second holder to a residential / or commercial property, purchased by NRI or / PIO. Regulations under the
notification permit an NRI or /  a PIO to acquire as well as sell immovable property in India
other than agricultural land, or plantation property, or farm house without any requirement
to file any documents with the RBI.

ACQUISITION OF PROPERTY THROUGH GIFT..!

Under general permission available, NRI/PIO may acquire residential / commercial property
by way of gift from a person resident in India or an NRI or a PIO. An NRI or a PIO origin
cannot acquire agricultural land / plantation property / farm house in India, even by way of gift.

Thus, such a gift cannot be accepted if given by a person, who is neither a citizen of India
nor of Indian origin, if he is resident outside India.

ACQUISITION OF PROPERTY THROUGH INHERITANCE

 
An NRI or PIO can hold any immovable property in India acquired by way of inheritance
from a person resident in India. An NRI or PIO may also acquire any immovable property in India
by way of inheritance from a person resident outside India, who has acquired such property
in accordance with the provisions of Foreign Exchange Law in force at the time of acquisition
by him, or the provisions of this regulation, or from a person resident in India.

If he gets the property by inheritance from the deceased, who was a person resident in India, it does not matter whether deceased was a citizen or not, or whether he was of the Indian origin or not. There
is no exception of agricultural land / farm house / plantation property. Even such property
can be inherited provided by the aforesaid conditions are fulfilled.

Src: Our Building and Construction, February 2013
B & C PUBLICATIONS
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