B. Transfer of immovable property in India

 

(i) Transfer by way of sale

 

Q.12. Can an NRI/ PIO/foreign national sell his residential / commercial property?

Ans.

a)   NRI can sell property in India to

i.   a person resident in India; or
ii.  an NRI; or
iii. a PIO.

b)   PIO can sell property in India to

i.   a person resident in India; or
ii.  an NRI; or
iii. a PIO – with the prior approval of the Reserve Bank

c)   Foreign national of non-Indian origin including a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan can sell property in India with prior approval of the Reserve Bank to

i.   a person resident in India
ii.  an NRI
iii. a PIO

 

Q.13. Can a non-resident owning / holding an agricultural land / a plantation property / a farm house in India sell the said property?

Ans.

a)   NRI / PIO may sell agricultural land /plantation property/farm house to a person resident in India who is a citizen of India.

b)   Foreign national of non-Indian origin resident outside India would need prior approval of the Reserve Bank to sell agricultural land/plantation property/ farm house in India.

 

 

(ii) Transfer by way of gift

 

 

Q.14. Can a non-resident gift his residential / commercial property?

Ans. Yes.

a)   NRI / PIO may gift residential / commercial property to –

i.   person resident in India or
ii.  an NRI or
iii. PIO.

b)   A foreign national of non-Indian origin requires the prior approval of the Reserve Bank for gifting the residential / commercial property.

 

Q.15. Can an NRI / PIO / foreign national holding an agricultural land / a plantation property / a farm house in India, gift the same?

Ans.

a)   NRI / PIO can gift an agricultural land / a plantation property / a farm house in India only to a person resident in India who is a citizen of India.

b)   A foreign national of non-Indian origin would require the prior approval of the Reserve Bank to gift an agricultural land / a plantation property / a farm house in India.

 

 

(iii) Transfer through mortgage

 

 

Q.16. Can residential / commercial property be mortgaged by NRI/ PIO?

Ans.

a)   NRI / PIO can mortgage a residential / commercial property to:

i.  an Authorised Dealer / the housing finance institution in India without the approval of Reserve Bank

ii. a bank abroad, with the prior approval of the Reserve Bank.

b)   A foreign national of non-Indian origin can mortgage a residential / commercial property only with prior approval of the Reserve Bank.

c)   A foreign company which has established a Branch Office or other place of business in accordance with FERA/FEMA regulations has general permission to mortgage the property with an Authorised Dealer in India.

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