Do- non – resident Indian Citizens require permission of the Reserve Bank to acquire residential/Commercial in India?
No. All Indian citizens entitled to buy property in India, Irrespective of their residential status

Do foreign citizens of India origin require Permission of the Reserve Bank to Purchase Immovable Property in India their residential use?
Yes. However, the RBI has grated general permission to foreign citizens of India origin, whether resident in India or abroad, to purchase Immovable property in India for their bona fide residential purpose. They are, therefore, not required to obtain separate permission of The Reserve Bank.

Who is a Foreign Citizen of India Origin?
A Foreign citizen is deemed to be of India Origin if : i) he held an Indian Passport at any time or ii) he or his father or paternal grand father was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955. However this does not apply to citizens of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri lanka or Nepal)

How should the Purchase of residential Immovable Property be said for by foreign citizens of India under the general permission?
The purchase consideration should be met either out of inward remittance in foreign exchange through normal banking channels, or out of funds from NRE/FCNR accounts maintained with banks in India.

What formalities have to be completed by foreign citizens of India origin to purchase residential Immovable property in India under the general permission?
They are required to file a declaration in the form IPI 7 with the central office of Reserve Bank at Mumbai within a period of days from date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the documentary evidence for the transaction and bank certificate for the money paid.

Can such Property be sold without the Permission of reserve Bank?
Yes. Reserve Bank has grated general permission for sale of such property. However, where the property is purchased by another foreign citizen of India origin, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.

Can sale proceeds of such property (if and when sold) be remitted out of India?
For residential properties purchased on or after 26 may 1993, the Reserve Bank considers applications for repatriation of sale proceeds. Approval is usually grated for up to the consideration amount remitted in foreign exchange in acquiring the property for a maximum of two such properties. The balance amount of sale proceeds, if any ,or sale proceeds for properties purchased prior to 26may 1993.will have to be credited to  the ordinary non – resident rupee account of the owner of the property .

Are any conditions required to be fulfilled if repatriation of sale proceeds is desired?
Application for repatriation of sale proceeds are considered provided the sale takes place after three years from the date of final purchase deed or from the date of payment final instalment of the consideration amount, whichever is later.

What is the procedure for seeking such repatriation?
Application for necessary permission for remittance of sale proceeds should be made on form IPI 8 to the Central office of the Reserve Bank at Mumbai within 90 days of the sale of the property

Can Foreign citizens of Indian origin acquire or dispose residential property by way of gift?
The Reserve Bank has grated general permission to foreign citizens of India origin to acquire or dispose of property up two house by way of gift from or to are relative who may be an Indian citizen or a person of India origin, whether resident in India or not ,Provided gift tax has been paid.

Can immovable property held in India be transferred by way of gift to in India?
General permission has been grated by Reserve  Bank  to non – resident persons (foreign citizen) of India origin to transfer, by way of gift, immovable property held in India to relatives and charitable trusts / organization subject to the condition that the provision of all other laws, as application are complied with

Can foreign citizens of India origin acquire commercial properties in India?
Properties other than agriculture land/plantation property can be acquired by foreign citizens of India origin provided the purchase consideration is met inward remittances in foreign exchange through normal banking channels or out of funds from the purchaser NRE/FCNR accounts maintained with bank in India. A declaration has to be submitted to the central office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property / final payment of purchase consideration.

Can they dispose of such properties?
Yes.

Can sale proceeds of such property be remitted out of India?
Yes. Repatriation of original investment in respect of properties purchased by foreign citizens of Indian origin on or after 26 may 1993 can be remitted up to the consideration amount originally remitted from abroad provided the property is sold after a period of three years from the final purchase deed or from the date of payment of final installment of consideration amount, which ever is later. Applications for the purpose are required to be made to the central office of Reserve Bank within 90 days of the sale property in form IPI 8.

Can the properties (residential /commercial) be given on rent if not required for immediate use?
The Reserve Bank has grated general permission for letting out any immovable property. In India, the rental income or proceeds of any investment of such income are eligible for repatriation.

Can NRIs obtain loans for acquisition of a house / flat for residential purpose from financial institutions providing housing finance?
The Reserve Bank has granted  general permission to certain financial institution providing housing finance e.g. HDFC and authorized dealers to grant housing loans to non – residence Indian nationals for acquisition of a house / flat for self – occupation, subject to certain condition. Criteria regarding the purpose of the loan, margin money and the quantum of loan will be at par with those applicable to resident Indians. Repayment of the loan should be made within a period not exceeding 15 years, out of inward remittance through banking channels or out of funds held in the investor’s NRE/FCNR/NRO accounts.

Can Indian Companies grant loans to their NRI staff?
The Reserve Bank permits Indian firms to grant housing loans to their employees abroad and holding passport subject to certain condition.

Can an authorized   dealer grant a housing loan to non-residents of Indian nationality where the NRI is the principal borrower with his resident close relative as a co-obligant / Guarantor or where the land is owned jointly by such NRI borrower with his resident close relative?
Yes. However in such cases the payment of margin money and payment of loan installments should be made by the NRI borrower.

What should be the method of payment for purchasing residential immovable property In India by foreign nationals’ origin under the general permission?
The purchase consideration should be met either out of inwards remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR  accounts maintained with banks in India Do non –resident Indian require permission of Reserve Bank to acquire residential / commercial property in India?
No permission is required by non-resident Indian nationals to acquire immovable property in India.

Are foreign nationals of Indian origin allowed to purchase immovable property in India?
Yes, foreign nationals of India origin, whether resident in India or abroad, have been granted general permission to purchase immovable property in India

In what way the non-resident Indian can finance the flat?
The purchase of the flats can be financed from the fresh remittance through the normal channels or from payment from origin non-resident accounts (External) Accounts. Non-resident Indians who are citizens of India (India Passport Holder) are eligible for housing finance  for the acquisition of an immovable property or construction of a new house, or a flat for their occupation or for that of their family in India. But the member of his/ her in India is made a co-borrower and power of attorney is given to his representative in India.

Non-Resident Indian are staying abroad can the property be purchased through the agent or through the power of attorney?
The non-resident Indians who are staying abroad may enter into an agreement through their relatives and/ or by executive the power of attorney in their favor as it is not possible for them to be present for completing the formalities of purchase (negotiating with the builder or Developer, drafting and signing of agreements, taking possession, etc.) These formalities can be completed through some known person who can be given the power of Attorney for this purpose. Power of Attorney should be executed on the stamp paper before the proper authorities in foreign countries. Power of Attorney can not be drafted on the stamp paper bought in India.

Can such residential property be given on rent if not required for immediate residential use?
Yes

Can the rental income from such property be remitted outside India?
No such income cannot be remitted abroad and will have to be credited to the ordinary non-resident rupee account of the owner of the property.

Non-resident Indians are staying abroad can the property be purchased through the agent or through the power of Attorney?
The non-resident Indians who are staying abroad may enter into an agreement through their relatives and/or by executive the power of Attorney in their favor as it is not possible for them to be present for completing the formalities of purchase (negotiating with the builder or Developer, drafting and signing of agreements, taking, possession, etc.) these formalities can be completed through some known person who can be given the power of Attorney for this purpose. Power of Attorney should be executed on the stamp paper before the proper authorities in foreign countries. Power of Attorney cannot be drafted on the stamp paper bought in India.

Are there any formalities to be completed by foreign nationals of Indian origin for purchasing residential immovable property in India?
They are required to file a declaration in form IPI 7 with Central Office of Reserve Bank At Bombay within period of 90 days from the date of purchase of immovable property.