Non-Residential Indian Investment In Immoveable Property In India
- IJLLR Journal
- Mar 21
- 1 min read
Om Tirankar, Maharashtra National Law University, Mumbai
ABSTRACT
This article gives an overview on the regulatory framework which governs Non-Resident Indian (NRI) making investment in the immoveable property in India, which are primarily guided by the Foreign Exchange Management Act (FEMA) and Reserve Bank of India (RBI). The law talks about the NRIs as Indian citizens which are residing outside India and talks about the types of properties the NRIs can invest in which also exclude agricultural land, farmhouse, and plantation. The law and regulation allow NRIs to sell, purchase, own, and rent properties. The transaction is funded through approves banking channels.
The article talks about several drawbacks in the regulation. There are restrictions on transferring properties which may cause delays, The restriction on funds from greater than two residential properties may restrict liquidity. Moreover, the limits apply to the people from specific countries, which makes the process of investment more difficult for the people.
However, NRI investment in the real estate of India provides chances for capital valuation and income through rent. The regulatory framework brings the issues that the investor must take into consideration.
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