Be cau­tious of for­eign­ers buy­ing prop­er­ties, warns Fi­nance Min­istry

For­eign Min­istry has re­quested to look in the mat­ter for the il­le­gal buy­ing prop­erty of the for­eign­ers.The gov­ern­ment has warned the states to ob­serve un­der the FEMA Act

Accommodation Times - - Front Page -

The gov­ern­ment has warns all the states spe­cially Goa, Kar­nataka and Ma­ha­rash­tra to be cau­tious about out­siders in­dis­crim­i­nately buy­ing prop­er­ties il­le­gally. It has also been ob­served that for­eign na­tion­als come to In­dia and stay be­yond 182 day on a tourist or other visa meant for a cer­tain pe­riod and ac­quires im­mov­able prop­erty vi­o­lat­ing rules and reg­u­la­tion un­der the FEMA act (For­eign Ex­change Man­age­ment Act).

Ac­cord­ing to FEMA act a per­son re­quires to sat­isfy the con­di­tions of the pe­riod of stay of more than 182 days in the coun­try in­clud­ing the pur­pose of stay and the type of In­dian visa granted to him to in­di­cate his intention stay in In­dia for an in­def­i­nite pe­riod. It says the per­son ac­quir­ing the im­mov- able prop­erty has to also ful­fill the re­quire­ments pre­scribed by the state au­thor­i­ties. As per the FEMA rules Reg­u­la­tion 21/2000 (No­ti­fi­ca­tion No. 21/2000-RB dated 3rd May 2000) an In­dian ci­ti­zen res­i­dent out­side In­dia and a Per­son of In­dian Ori­gin res­i­dent out­side In­dia may ac­quire im­mov­able prop­erty in In­dia other than agri­cul­tural land, plan­ta­tion or a farm house. A for­eign com­pany which has es­tab­lished a Branch Of­fice or other place of busi­ness in In­dia un­der the pro­vi­sions of For­eign Ex­change Man­age­ment (Es­tab­lish­ment in In­dia of Branch or Of­fice or Other Place of Busi­ness) Reg­u­la­tions, 2000 (FEMA 22/2000-RB dated the 3rd May, 2000) can ac­quire im­mov­able prop­erty in In­dia which is nec­es­sary for or in­ci­den­tal to car­ry­ing on such ac­tiv­ity, sub­ject to the con­di­tions stip­u­lated in Reg­ula- tion 5 of For­eign Ex­change Man­age (Ac­qui­si­tion and Trans­fer of Im­mov­able Prop­erty in In­dia) Reg­u­la­tions, 2000 ( No­ti­fi­ca­tion No.21/2000-RB dated the 3rd May, 2000). In view of the above, all, in­clud­ing the au­thor­i­ties con­cerned in the State Gov­ern­ments, are hereby ad­vised to be ex­tra vig­i­lant in such mat­ters and sat­isfy them­selves about the el­i­gi­bil­ity un­der FEMA be­fore reg­is­ter­ing sale or pur­chase of im­mov­able prop­erty in In­dia. The en­quiries may in­clude both the in­tend­ing buy­ers and sell­ers. The rel­e­vant travel doc­u­ments and the na­ture of visa may also be ver­i­fied be­fore reg­is­ter­ing such sale/pur­chase. Where ap­pro­pri­ate, the au­thor­i­ties may con­sider re­view­ing reg­is­tra­tion of sale/pur­chase al­ready made to de­ter­mine their com­pli­ance with le­gal re­quire­ments.

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