Rules for NRIs to invest in Madurai Trichy Chennai Coimbatore Tamil nadu

Who is a Non Resident Indian ?

An Indian Citizen who stays abroad for employment / carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in U.N. organization and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as non- residents). Non-resident foreign citizens of Indian Origin are treated on par with non-resident Indian citizens (NRIs).

Who is a person of Indian Origin ?

For the purpose of availing of the facilities of opening and maintenance of bank accounts and investments in shares/securities in India : A foreign citizen (other than a citizen of Pakistan or Bangladesh is deemed to be of Indian origin, if, (i) he, At any time, held an Indian passport or
(ii) he or either of his parents or any of his grand parents was a citizen by virtue of the constitution of India or citizenship act, 1995 (57 of 1955).
Note: A spouse (not being a citizen of Pakistan or Bangladesh) of an Indian origin is also treated as a person of Indian origin for the above purposes.
B. For investments in immovable properties:
A foreign citizen other than a citizen of Pakistan, Bangladesh, Sri Lanka or Nepal), Is deemed to be of Indian origin if,
i) he, At any time, held an Indian passport or (ii)
he or either of his parents or any of his grand parents was a citizen by virtue of the constitution of India or citizenship act, 1995 (57 of 1955).

Are NRIs allowed to invest in companies dealing in real estate?

Yes, upto 100% of the new issue of Indian companies engaged in construction, real estate development and funding of housing development.

Why Real Estate is the best investment bet?

Returns from real estate investments have consistently performed well and even out performed the other investment options. However, easy home loan availability by financial institutions in India, NRI remittances and repatriation procedures has emerged as the best of all the available prospects for the NRIs looking forward to return to India.

Is NRI/PIO who has purchased residential/commercial property under general permission required to file any documents with Reserve Bank of India?

NRI/PIO who has purchased residential/commercial property under general permission is not required to file any documents with the RBI.

Is there any restriction on number of residential/commercial property that NRI/PIO can purchase under the general permission available?

There is no restriction on number of residential/commercial property that NRI/PIO can purchase under the general permission available.

Can a person resident outside India (i.e. a NRI or a PIO or a foreign national of non-Indian origin) acquire agricultural land/plantation property/farm house in India by way of purchase?

No. A person resident outside India cannot acquire by way of purchase agricultural land/plantation property/farm house in India.

Can NRI/PIO acquire residential/commercial property by way of gift under the general permission available?

Yes. Under general permission available NRI/PIO may acquire residential/commercial property by way of gift from a person resident in India or a NRI or a PIO.

Can NRIs obtain loans for acquisition of a house/flat for residential purpose from financial institutions providing housing finance?

Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC,LIC Housing Finance Ltd. etc to grant housing loans to NRIs for acquisition of houses/flats for self-occupation subject to certain conditions.

While purchasing real estate most developers demand a Power of Attorney in their favor, is there a way to avoid it?

One can choose not to grant the Power of Attorney (POA) to the developers. However this will mandate the mailing of all documents to your foreign residence and associated time delays. A good compromise is to grant the POA to the builder only for specific necessary items.

Where can one find regulations/directions issued by Reserve Bank for acquisition and transfer of immovable property in India by a person resident outside India?

Regulations regarding acquisition and transfer of immovable property in India by a person resident outside India has been notified vide RBI Notification No. FEMA 21/2000-RB dated May 3, 2000 as amended vide Notification No. FEMA 64/2002-RB dated June 29, 2002 and Notification No. FEMA 65/2002-RB dated June 29, 2002 and relevant directions issued in the form of A.P. (DIR Series) Circulars. These are available on RBI website: www.fema.rbi.org.in