Home land gets closer for overseas
Source: The Economic Times
The proposal mooted by the ministry of overseas Indian affairs seeks to make buying of real estate by over-seas Indians hassle-free and comes as a breather for real estate firms who can now expect more buyers from abroad at a time when domestic demand is low. Current laws restrict investments by PIOs in real estate, causing delays extending to over a year. A source said the finance ministry, the RBI and the home ministry have given in-principle approval to the proposal. It needs to be vetted by a committee of secretaries now.
A government source told ET that the Indian diaspora living in Sri Lanka, China, Iran, Nepal, Bhutan and Afghanistan will be allowed to buy real estate in India without obtaining any permission from the RBI.
At present, regulations under FEMA provide for mandatory clearance by the RBI for overseas Indian citizens residing in these six countries to buy property in India. However, PIOs based in Pakistan and Bangladesh would still be required to seek mandatory RBI approval before buying or transferring property here.
The issue of variation in the definition of PIOs in the FEMA notification of 2000 and the Overseas Citizenship of India (OCI) scheme was discussed at an inter-ministerial meeting comprising senior officials from the ministries of finance, home affairs, law and RBI.
PIOs May Get To Buy Property In India Without RBI Approval Visa
THERE'S good news for the people of Indian origin (PIO). The government is planning to allow them to buy property in India without mandatory RBI approval and without the hassles of producing a valid visa. The current Foreign Exchange Management Act (FEMA) guidelines are also being amended to remove a 'gender bias' where non-residents whose mothers or grandmothers were citizens of India will also be allowed to buy real estate in the country. The existing rules permit only those PIOs to buy property in India whose father or grandfather were Indian citizens.The proposal mooted by the ministry of overseas Indian affairs seeks to make buying of real estate by over-seas Indians hassle-free and comes as a breather for real estate firms who can now expect more buyers from abroad at a time when domestic demand is low. Current laws restrict investments by PIOs in real estate, causing delays extending to over a year. A source said the finance ministry, the RBI and the home ministry have given in-principle approval to the proposal. It needs to be vetted by a committee of secretaries now.
A government source told ET that the Indian diaspora living in Sri Lanka, China, Iran, Nepal, Bhutan and Afghanistan will be allowed to buy real estate in India without obtaining any permission from the RBI.
At present, regulations under FEMA provide for mandatory clearance by the RBI for overseas Indian citizens residing in these six countries to buy property in India. However, PIOs based in Pakistan and Bangladesh would still be required to seek mandatory RBI approval before buying or transferring property here.
The issue of variation in the definition of PIOs in the FEMA notification of 2000 and the Overseas Citizenship of India (OCI) scheme was discussed at an inter-ministerial meeting comprising senior officials from the ministries of finance, home affairs, law and RBI.
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