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Discerning reasons for NRI's to invest with Risara Properties.

The NRI investment in the Indian real estate has its genesis in a number of socio-economic factors. From a sociological standpoint, the emotional bond of having a piece of what can be conveniently described as the best asset class has been driving them to the property market. From economic perspective, no other asset class in any other country has historically given the kind of ROI that the Indian property market has offered to the expat Indians.

The recent slowdown and era of economic turbulences with fear of job losses was a learning that it is better to invest in a property in the homeland where they can settle in times of crisis. The resilience of the Indian economy and financial institutions is an encouraging sign for the expat Indians.

The great 19th century steel building industrialist Andrew Carnegie once said "90 per cent of millionaires became so through owning real estate." Of course, not every real estate investment attracts the elite group of buyers who are well travelled and exposed to the global class, and hence aspire for the same in India. The NRIs prefer to invest in a property that has great aspiration value All projects by Risara Properties have appreciated at an average rate of 200% returns in 5yrs from the date of commencement.


It is a common knowledge that every asset class goes through its own cycle of up and down trend over years. However, over a longer period returns on investment with property are much better than any other asset class. A study suggests that between 1979 to 2013, which means 34 years, property has given returns of CAGR 17 per cent which is way higher than the next safe asset class gold that has given returns of CAGR 12 per cent.

The depreciation of rupee against the dollar has given one more reason for the NRIs to invest in the Indian property market. But it is not just the economic reasons that are increasingly driving these global Indians to the property market back home. As per a study conducted among the NRIs about their preferences and choices vis-Ã -vis investment in the Indian property market is concerned, the cities that score high on the wish list of the NRIs are the ones which offer vibrant business opportunities, clubbed with lifestyle options in the vicinity. Most of the NRIs have been working in many of the cosmopolitan cities worldwide but the kind of satisfaction index, social-emotional-economical; that they get in the Indian market has not been there. NRIs find the Liveability Index of a number of Indian cities much better than the global cities, though there may be better economic opportunities in other part of the world.

For many of them luxury living is not about living in a cosy apartment with all the luxurious amenities but a holistic living where the work place, clubs, restaurants, movies, shopping destinations are all in the vicinity. After all, luxury is not only about the amenities that a developer provides in his project; it also has a lot to do with the creation of overall social infrastructure and the lifestyle choice that come as a package.

"Live, Work & Play' is what attracts the globe trotter expat Indians the most and, of course, they are a key demand driver of property investment worldwide. Indians are the largest property buyers in London and a significant buyer group in the gulf. Naturally, at a time when the Indian economy is expected to take a giant leap with the recovery of global economy they would want to invest in the Indian property market. And since no property market across the world can give the kind of appreciation that Indian market can, the Indian market is a promising investment.

FAQ’s

  1. 1 Who can purchase immovable property in India?

    Under the General permission as available, the following categories can freely purchase immovable property (residential or commercial) in India.

    1. Non Resident Indian (NRI) i.e. a citizen of India resident outside India
    2. Person of Indian origin (POI) i.e.
      • who at any time, held an Indian passport
      • 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.

    However, a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan will not be treated as POI.

  2. 2 Whether NRI/PIO can acquire agricultural land Plantation property, Farm House in India.

    NRI/PIO are not eligible to acquire agricultural land /plantation property/farm house in India under the general permission.

  3. 3 Do any documents need to be filed with RBI after purchases commercial and/or residential properties by NRI/ PIO

    No document has to be filed by NRI/PIO after purchase of commercial and residential properties, as general permission has been granted under regulation 3 and 4 of the Notification No.21/2000–RB dated 3rd May 2000.

  4. 4 How many residential /commercial properties can NRI/PIO purchase under the general permission?

    On perusal of Master Circular No. 4/2013-14 dated 1st July 2013 it is observed that there is no restriction for acquiring any number of commercial and residential properties.

  5. 5 Can a Foreign National of Non Indian Origin be a second holder to immovable property purchased by NRI/PIO?

    No. However Answer given in Query 7 may also be seen.

  6. 6 Can a Foreign National of Non Indian Origin Resident outside India purchase immovable property in India ?

    Foreign Nationals of Non Indian Original Resident are not permitted to acquire any immovable property in India unless such property is acquired by way of inheritance from a person who was resident in India. However, he / she can acquire or transfer immovable property in India, on lease, not exceeding five years. In such cases, there is no requirement of taking any permission of /or reporting to the Reserve Bank of India.

  7. 7 Can a Foreign National who is a person resident in India purchase immovable property in India?

    Foreign Nationals of Non Indian Origin, other than a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan, can acquire immovable property in India on becoming resident in India in terms of Section 2 (v) of the Foreign Exchange Management Act, 1999. In this connection, he has to satisfy inter alia the condition of period of stay in India and the onus to prove his/ her residential status is on the individual as per the extant FEMA provisions, if so required by any authority. The type of visa granted should clearly indicate the intention to stay in India for an uncertain period to determine his residential status in terms of Section 2 (v) FEMA 1999. (Press Release dated February 1, 2009 issued by Government of India.) However, the person concerned would have to obtain the approvals and fulfil the requirements, if any, prescribed by other authorities, such as, the concerned State Government, etc. Foreign nationals of Non-Indian Origin who are citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan can purchase immovable property in India only with the prior approval of the Reserve Bank of India.

  8. 8 Can an office of a foreign company purchase immovable property in India.
    1. A person resident outside India who has established a branch office or other place of business, excluding a liaison office, for carrying on in India any activity in accordance with the Foreign Exchange Management (establishment in India of Branch or office or other place of business) Regulations, 2000, may acquire any immovable property in India, which is necessary for or incidental to carrying on such activity, provided that all applicable laws, rules, regulation or directions for the time being in force are duly complied with, and the person files with the Reserve Bank of India a declaration in the form IPI not later than ninety days from the date of such acquisition.
    2. Further, entities who have set up branch offices in India but are incorporated in Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran Nepal, Hong Kong, Macau and Bhutan would require prior approval of Reserve Bank of India to acquire any immovable property
    3. However, if the foreign company has established a liaison office, it cannot acquire immovable property. In such cases, liaison offices, can take property by way of lease not exceeding 5 years.
  9. 9 Whether immovable property in India can be acquired by way of gift?

    Any NRI/ PIO may acquire any immovable property (other than agricultural land/plantation property/farm house) in India by way of gift from a person resident in India or a NRI or a PIO. However, a foreign national of non-Indian origin, resident outside India cannot acquire any immovable property in India by way of gift without the prior approval of the Reserve Bank of India.

  10. 10 Whether a non resident can inherit immovable property in India?

    A NRI can acquire immovable property by way of inheritance (other than agricultural land/plantation property/farm house). A PIO may acquire immovable property in India by way of inheritance from a person resident in India or a person resident outside India who had acquired such property in accordance with the provisions of the foreign exchange law in force or FEMA regulation, at the time of acquisition of such property, (other than agricultural land/plantation property/farm house). However, a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan will not be treated as POI. A foreign national of non-Indian origin is not permitted to acquire any immovable property in India unless such property is acquired by way of inheritance from a person who was resident in India.

  11. 11 From whom can the non resident inherit immovable property?

    A person resident outside India being an NRI or a PIO can inherit immovable property from a person resident in India and another person resident outside India, provided that the person from whom the property is inherited has acquired such property in accordance with the provisions of the Foreign Exchange Law in force or FEMA regulation, at the time of acquisition of the property,. A person resident outside India being a foreign national of non-Indian origin can only inherit property from a person who was resident in India. However, a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan will not be treated as PIO.

  12. 12 FCan a NRI/PIO /Foreign National sell his residential/commercial property?

    A NRI may transfer any immovable property in India to a person resident in India. He may transfer any immovable property (other than agricultural land or plantation property or farm house) to an NRI or to a PIO. A PIO can transfer any immovable property in India (other than agricultural land/farm house/plantation property) by way of sale to a person resident in India, an NRI or, with the prior approval of the Reserve Bank of India, a PIO. He may transfer agricultural land/farm house/plantation property in India, by way of gift or inheritance to a person resident in India, who is a citizen of India, or to a person of Indian Origin resident outside India.

    Foreign National of Non Indian Origin including a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan can sell property in India with prior approval of Reserve Bank of India to a person resident in India or an NRI or a PIO.

  13. 13 Can a Non Resident India owning agricultural land/plantation property/farm house in Indian sale the said property?

    NRI / PIO can sale agricultural land/plantation property/farm house only to a person resident in India, who is citizen of India. However, a foreign national of non-Indian origin resident outside India would need prior approval of the Reserve Bank of India to sell agricultural land/plantation property/ farm house in India.

  14. 14 Can a non-resident gift his residential /commercial property?

    Yes, NRI/PIO can gift his residential / Commercial property in India to a person resident in India or NRI or PIO but gift by a Foreign National of non-Indian origin needs prior approval of RBI.

  15. 15 Can NRI/PIO Foreign national holding agricultural land/plantation property/farm house in Indian gift the same?

    NRI/PIO can gift but only to a person resident in India who is a citizen of India. However, Foreign National of non-Indian origin needs prior approval of RBI.

  16. 16 Can residential/Commercial property be mortgaged?

    NRI/PIO can mortgage in favour of

    1. Authorized Dealer/Housing Finance Institution in India without the approval of Reserve Bank.
    2. Bank abroad– with prior approval of Reserve Bank.

    However, a foreign national of non-Indian origin can mortgage a residential / commercial property only with prior approval of the Reserve Bank of India. A foreign company which has established a Branch Office or other place of business in accordance with FERA/FEMA regulations has general permission to mortgage the property with an Authorised Dealer in India.

  17. 17 How can an NRI/PIO make payment for purchase of residential/commercial property in India?

    Payment can be made by NRI/PIO out of

    1. Funds remitted to India through normal banking channels or
    2. Funds held in NRE/FCNR (B) NRO account maintained in India

    No payment can be made either by traveller'scheque or by foreign currency notes or by other mode except those specifically mentioned above.

  18. 18 Can NRI/PIO avail of loan from an authorized dealer for acquiring flat/house in India for his own residential use against the security of funds held in his NRE fixed deposit account/FCNR(B) account? How the loan can be repaid?

    Yes such loans are permitted subject to the terms and conditions laid down in Schedules 1 and 2 to the Notification No. FEMA 5/2000 RB dated May 3, 2000 viz Foreign Exchange Management (Deposit) Regulations, 2000 as amended from time to time. Banks cannot grant fresh loans or renew existing loans in excess of Rs. 100 lakhs against NRE and FCNR (B) deposits, either to the depositors or to third parties.
    The banks should also not undertake artificial slicing of the loan amount to circumvent the ceiling of Rs. 100 lakh.

    Such loans can be repaid in the following manner:

    1. by way of inward remittance through normal banking channel or
    2. by debit to the NRE / FCNR (B) / NRO account of the NRI/ PIO or
    3. out of rental income from such property
    4. by the borrower's close relatives, as defined in section 6 of the Companies Act, 1956, through their account in India by crediting the borrower's loan account.
  19. 19 Can NRI/PIO avail of housing loan in rupees from an authorized dealer or a Housing Finance Institution in India approved by the National Housing Bank for purchase of residential accommodation or for the purpose of repairs / renovation / improvement of residential accommodation? How can such loan be repaid?

    Yes, NRI/PIO can avail of housing loan in Rupees from an Authorised Dealer or a Housing Finance Institution subject to certain terms and conditions laid down in Regulation 8 of Notification No. FEMA 4/2000-RB dated May 3, 2000 viz. Foreign Exchange Management (Borrowing and lending in rupees) Regulations, 2000, as amended from time to time. Authorised Dealers/ Housing Finance Institutions can also lend to the NRIs/ PIOs for the purpose of repairs / renovation / improvement of residential accommodation owned by them in India. Such a loan can be repaid (a) by way of inward remittance through normal banking channel or (b) by debit to the NRE / FCNR (B) / NRO account of the NRI / PIO or (c) out of rental income from such property; or (d) by the borrower's close relatives, as defined in section 6 of the Companies Act, 1956, through their account in India by crediting the borrower's loan account.

    Where an Authorised Dealer in India has granted loan (including Housing loan) to a non-resident Indian such loans may also be repaid by resident (relative as defined under Section 6 of the Companies Act, 1956), of the non-resident Indian by crediting the borrower's loan account through the bank account of such relative.

  20. 20 Can NRI/PIO avail of housing loan in rupees from his employer in India?
    • The personal loan can be granted only for personal purposes including purchase of housing property in India.
    • The loan shall be granted in accordance with the lender's staff welfare scheme/staff housing loan scheme and subject to other terms and conditions applicable to its staff resident in India.
    • The lender shall ensure that the loan amount is not used for the purposes specified in sub clauses (i) to (iv) of clause (1) and clause (2) of Regulation 6 of Notification No. FEMA 4/2000 RB dated May 3, 2000.
    • The lender shall credit the loan amount of the borrower's NRO account in India or shall ensure credit to such account by specific indication on the payment instrument.
    • The loan agreement shall specify that the repayment of loan shall be by way of remittance from outside India or by debit to NRE/NRO/FCNR Account of the borrower and the lender shall not accept repayment by any other means.

    An individual resident can also lend money to his close relative NRI/ PIO by way of crossed cheque /electronic transfer within the overall limit of USD 75,000 per financial year under the Liberalised Remittance Scheme, to meet the borrower's personal or business requirements in India, subject to conditions. The loan should be interest free and have a maturity of minimum one year and cannot be remitted outside India

  21. 21 Can a Foreign National of Non Indian Origin Resident outside India purchase immovable property in India ?

    Immovable property acquired by way of purchase

    1. A person referred to in sub-section (5) of Section 6 of the Foreign Exchange Management Act , or his successor shall not, except with the prior permission of the Reserve Bank, repatriate outside India the sale proceeds of any immovable property referred to in that sub-section.
    2. In the event of sale of immovable property other than agricultural land / farm house / plantation property in India by a person resident outside India who is a citizen of India or a person of Indian origin, the Authorized Dealer may allow repatriation of the sale proceeds outside India, provided the following conditions are satisfied, namely:
      the immovable property was acquired by the seller in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations;
      the amount to be repatriated does not exceed: • the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels, or • the amount paid out of funds held in Foreign Currency Non-Resident Account, or • the foreign currency equivalent (as on the date of payment) of the amount paid where such payment was made from the funds held in Non-Resident External account for acquisition of the property; and in the case of residential property, the repatriation of sale proceeds is restricted to maximum two such properties.
      Immovable property acquired by way of inheritance/ legacy/ out of Rupee funds

    A Non-Resident Indian (NRI) / Person of Indian Origin (PIO) may remit an amount, not exceeding US $ 1,000,000 (US Dollar one million only) per financial year:

    1. out of the balances held in NRO accounts / sale proceeds of assets by way of purchase / the assets in India acquired by him by way of inheritance / legacy/ out of Rupee funds. This is subject to production of documentary evidence in support of acquisition, inheritance or legacy of assets by the remitter, and a tax clearance / no objection certificate from the Income Tax Authority for the remittance. Remittances exceeding US $ 1,000,000 (US Dollar one millione only) in any financial year requires prior permission of the Reserve Bank.
    2. pursuant to deed of settlement made by either of his parents or a close relative (as defined in Section 6 of the Companies Act, 1956) and the settlement taking effect on the death of the settler, the original deed of settlement and a tax clearance / No objection certificate from the Income-Tax Authority should be produced for the remittance.

    Where the remittance as above is made in more than one installment, the remittance of all such installments shall be made through the same Authorised Dealer.

  22. 22 Can an NRI/PIO repatriate the proceeds in case the sale proceed was deposited in NRO account?

    NRI/PIO may repatriate up to USD 1,000,000 (US Dollar one million only) per financial year (April-March) from their NRO account which would also include the sale proceeds of immovable property. There is no lock in period for sale of immovable property and repatriation of sale proceeds outside India.

  23. 23 If a Rupees loan was taken by NRI/PIO from authorized dealer or housing finance institution for purchase of residential property can an NRI/PIO repatriate the sale proceeds of such property?

    Yes, Authorized Dealers have been authorized to allow repatriation of sale proceeds of residential accommodation purchased by NRIs/ PIOs out of funds raised by them by way of loans from the authorized dealers/ housing finance institutions to the extent such loan/s repaid by them are out of the foreign inward remittances received through normal banking channel or by debit to their NRE/FCNR accounts. The balance amount, if any, can be credited to their NRO account and the NRI/PIO may repatriate up to USD one million per financial year (April-March) subject to payment of applicable taxes from their NRO account balances which would also include the sale proceeds of the immovable property.

  24. 24 If the immovable property was purchased from Foreign inward remittance or from NRE/FCNR(b) account, can the sell proceeds of the property repatriated immediately

    Yes, for further details, please refer to the response for Query 22.

  25. 25 Is there any restriction on number of residential properties in respect of which sale proceeds can be repatriated by NRI/PIO?

    Yes sale proceeds of more than two residential properties can be repatriated.

  26. 26 If the immovable property was acquired by way of gift by the NRI/PIO, can he repatriate abroad the funds from sale of such property?

    The sale proceeds of immovable property acquired by way of gift should be credited to NRO account only. From the balance in the NRO account, NRI/PIO may remit up to USD one million, per financial year, subject to the satisfaction of Authorized Dealer and payment of applicable taxes.

  27. 27 If the immovable property was received as inheritance by the NRI/PIO can he repatriate the sale proceeds?

    Yes, general permission is available to the NRIs/PIO to repatriate the sale proceeds of the immovable property inherited from a person resident in India subject to the following conditions:

    1. (i) The amount should not exceed USD one million, per financial year
    2. This is subject to production of documentary evidence in support of acquisition / inheritance of assets and an undertaking by the remitter and certificate by a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes vide their Circular No. 4/2009 dated June 29, 2009
    3. In cases of deed of settlement made by either of his parents or a close relative (as defined in section 6 of the Companies Act, 1956) and the settlement taking effect on the death of the settler
    4. ) the original deed of settlement and a tax clearance / No Objection Certificate from the Income-Tax Authority should be produced for the remittance
    5. Where the remittance as above is made in more than one installment, the remittance of all such installments shall be made through the same Authorized Dealer
    6. In case of a foreign national, sale proceeds can be repatriated if the property is inherited from a person resident outside India with the prior approval of the Reserve Bank. The foreign national has to approach the Reserve Bank with documentary evidence in support of inheritance of the immovable property and the undertaking and the C.A. Certificate mentioned above.
    7. The general permission for repatriation of sale proceeds of immovable property is not available to a citizen of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan and Iran and he has to seek specific approval of the Reserve Bank.
    8. As FEMA, 1999 specifically permits transactions only in Indian Rupees with citizens of Nepal and Bhutan. Therefore, the question of repatriation of the sale proceeds in foreign exchange to Nepal and Bhutan would not arise.
  28. 28 Can Foreign Embassies / Diplomats / Consulates General purchase / sell immovable property in India?

    In terms of Regulation 5A of the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations 2000, Foreign Embassies/ Diplomats/ Consulates General, may purchase/ sell immovable property (other than agricultural land/ plantation property/ farm house) in India provided –

    1. Clearance from the Government of India, Ministry of External Affairs has been obtained for such purchase/sale; and
    2. The consideration for acquisition of immovable property in India is paid out of funds remitted from abroad through the normal banking channels.
  29. 29 Can NRI / PIO rent out the residential / commercial property purchased out of foreign exchange / rupee funds?

    Yes, NRI/PIO can rent out the property without the approval of the Reserve Bank. The rent received can be credited to NRO / NRE account or remitted abroad. Powers have been delegated to the Authorised Dealers to allow repatriation of current income like rent, dividend, pension, interest, etc. of NRIs/PIO who do not maintain an NRO account in India based on an appropriate certification by a Chartered Accountant, certifying that the amount proposed to be remitted is eligible for remittance and that applicable taxes have been paid/provided for.

  30. 30 Can a person who had bought immovable property, when he was a resident, continue to hold such property even after becoming an NRI/PIO

    Yes, a person who had bought the residential/ commercial property/ agricultural land/ plantation property/ farm house in India when he was a resident, may continue to hold the immovable property without the approval of the Reserve Bank even after becoming an NRI/PIO.

  31. 31 In which account can the sell proceeds of such immovable property be credited?

    The sale proceeds may be credited to NRO account of the NRI/ PIO.

  32. 32 Can the sale proceeds of the immovable property referred to in Question No. 31 be remitted abroad ?

    Yes, from the balance in the NRO account, NRI/PIO may remit up to USD one million, per financial year, subject to the satisfaction of Authorized Dealer and payment of applicable taxes.

  33. 33 Can foreign nationals of non-Indian origin resident in India or outside India who had earlier acquired immovable property under FERA with specific approval of the Reserve Bank continue to hold the same? Can they transfer such property?

    Yes, they may continue to hold the immovable property under holding license obtained from the Reserve Bank. However, they can transfer the property only with the prior approval of the Reserve Bank.

  34. 34 Is a resident in India governed by the provisions of the Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations, 2000?

    A person resident in India who is a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan is governed by the provisions of Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000, as amended from time to time, i.e. she/he would require prior approval of the Reserve Bank for acquisition or transfer of immovable property in India even though she/he is resident in India. Such requests are considered by the Reserve Bank in consultation with the Government in India.

  35. 35 Where are the terms a 'person resident' in India and a "person resident outside India" defined?

    Section 2 (v) of FEMA, 1999 defines a person resident in India and Section 2 (w) of FEMA, 1999 defines a person resident outside India. The person resident outside India is categorized as Non Resident Indian (NRI) or a foreign national of Indian Origin (PIO) or a foreign national of non Indiaorigin. The Reserve Bank does not determine the residential status Under FEMA, residential status is determined by operation of law. The onus is on the individual to prove his/her residential status, if questioned by any authority.

  36. 36 What is meant by a person resident in India?

    The Section 2 (v) of the FEMA defines the person resident in India as

    • a person residing in India for more than one hundred and eighty two days during the course of the preceding financial year but does not include
      1. a person who has gone out of India or who stays outside India, in either case-
        1. for or on taking up employment outside India, or
        2. for carrying on a business or vocation outside India, or
        3. for any other purpose in such circumstances as would indicate his intention to stay outside India for an uncertain period;
      2. ) a person who has come to or stays in India, in either case, otherwise than-
        1. ) for or on taking up employment in India, or
        2. ) for carrying on in India a business or vocation in India, or
        3. for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period;
    • any person or body corporate registered or incorporated in India.
    • An office, branch or agency in India owned or controlled by a person resident outside India,
    • An office, branchy, or agency outside India owned or controlled by a person resident in India
  37. 37 What is meant by a person resident outside India?

    Section 2 (w) defines as a person who is not resident in India and as explained in Answer 37.

  38. 38 Who can determine whether a person is resident in India or not?

    The Reserve Bank does not determine the residential status. Under FEMA residential status is determined by operation of law. The onus is on an individual to prove his/her residential status, if questioned by any authority.

  39. 39 If a foreign national is a person resident in India as per the provisions of Section 2(v) (i) B of the FEMA, 1999, does he require approval of Reserve Bank to purchase any immovable property in India?

    A Foreign National Resident in India who is citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan requires specific prior approval of Reserve Bank and require permission from the concerned State Government Authorities. However a Foreign National (other than a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan) who is Resident in India does not require approval from Reserve Bank from FEMA angle, but approvals if any required in terms of the regulations prescribed by other authorities such as concerned State Government etc. will have to obtain by him.

  40. 40 What shall be the option if there is refund of application money/payment received by the Building Agencies/Seller to NRI/ PIO because of non allotment of flat/plot or cancellation of bookings/contracts?

    On satisfaction of Authorized Dealer about genuineness of the transaction, the authorized dealer can allow NRIs/PIOs to credit refund of the application money/ earnest money/ purchase consideration made to the House Building agencies/ seller on account of such cancellation to NRE/FCNR account of the NRI / PIO provided original payment was made out of NRE/FCNR account of the account holder or remittance from outside India through normal banking channel.