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
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.