Special Story – The Maharashtra Co-op. Housing Society
A.
Issues under FEMA
Acquisition of immovable property in India by persons resident outside India is regulated in terms of Section 6(3)(i) of FEMA as well as by regulations contained in Notification No. 21 Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations, 2000 issued by RBI as amended from time to time.
a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who (i) at any time, held an Indian Passport, or (ii) who or either of whose father or mother or whose grandfather or grandmother was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955). Regulation 4 of Notification No. 21 deals with provisions relating to acquisition / transfer of immovable property in India by PIOs.
Under FEMA, the thrust is on residential status. Non-residents are categorised as (i) NonResident Indians (NRIs) or (ii) a foreign national of Indian Origin (PIO) or (iii) a foreign national of non-Indian origin.
Therefore, one should bear in mind different @”/ ¤/= !
Meaning of NRI / PIO:
Person Resident in India
–
œ¤ / œ " 2(v) of FEMA.
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Section 2 of the FEMA deals with various / * / ‡¤”/‰ * ! / ‡¤”=/‰ ƒ $ ‡@”‰ the term Non-resident Indian “NRI�.
In respect of an individual, the definition of person resident in India under Section 2(v)(i) would mean to be a person residing in India for more than one hundred and eighty-two days ‡@”/‰ 4> } ! ! Notification No. 21 which is a specific but does not include – notification dealing with acquisition/ (A) a person who has gone out of India or who transfer of immovable property in India. stays outside India, in either case – ƒ 4> } @ @ § ‡@”/‰ (a) for or on taking up employment to mean a person resident outside India outside India, or who is either a citizen of India or person (b) for carrying on outside India a of Indian origin. The term “NRI� is also business or vocation outside India, defined in FEMA Notification No. 13 to or mean a person residing outside India, who is a citizen of India. Regulation 3 of (c) for any other purpose, in such @ @ |{ circumstances as would indicate his relating to acquisition / transfer of intention to stay outside immovable property in India by person resident outside India who is a citizen of (B) a person who has come to or stays in India, in either case, otherwise than – India. Therefore “NRI� for the purpose of acquisition/ transfer of immovable (a) for or on taking up employment in property in India will exclude PIO. India, or ‡¤ / = ‰ ‡¤/=‰ (b) for carrying on in India a business or in Regulation 2(c) of FEMA Notification vocation in India, or No. 21 to mean an individual (not being
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The Chamber's Journal April 2013
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