Chennai, the capital of Tamil Nadu, is fast-emerging as one of the major economic centers in the country, significantly contributing to India’s global rise. Being internationally accessible by both air and sea, several MNC’s including the world’s biggest automobile companies, IT superpowers and many others have established a base in Chennai. The past decade has witnessed a rapid change in the urban skyline of Chennai and its surrounding areas, leading to an exponential growth in the residential housing sector as well as other social infrastructure necessities such as retail, health care and education.
As a result of which, several NRIs from around the world have taken a keen interest in investing in real estate in Chennai. Liberalized policies by the Indian government for NRI investments in real estate have also made things easier. Property management services and the risk free handling of affairs related to property management have become the order of the day, leading to several multi-national property management services companies foraying into India.
At Devinarayan, we understand the pulse of the NRI customer and deliver to your expectations. While we have one of the highest numbers of satisfied customers locally, we take pride in catering to the needs and requirement of our NRI customer base as well. State of the art apartments with eco-conservation standards and practices and a completely transparent system of operations ensures your complete peace of mind.
Every NRI should understand the following before investing:
An Indian citizen resident outside India (NRI) does not require any permission to acquire any immovable property in India.
A person resident outside India does not require any permission to transfer any immovable property, to a citizen of India who is resident in India.
A person resident outside India, who has been permitted by Reserve Bank to establish a branch, or office, or place of business in India (excluding a Liaison Office), has general permission of Reserve Bank to acquire immovable property in India, which is necessary for, or incidental to, the activity. However, in such cases a declaration, in prescribed form (IPI), is required to be filed with the Reserve Bank, within 90 days of the acquisition of immovable property.
An Indian citizen resident outside India does not require any permission to transfer any immovable property other than agricultural or plantation property or farm house,
- to a person who is a citizen of India resident outside India, or is a person of Indian origin resident outside India.
- from out of funds received in India by way of inward remittance through banking channel from any place outside India, or held in any non-resident account maintained in accordance with the provisions of the Act and the regulations made by the Reserve Bank under the Act.
- by way of gift from a person resident in India or from a person resident outside India who is a citizen of India.
- from a person resident outside India who had acquired such property 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 or from a person resident in India.
- by way of sale to a person resident in India.
- by way of gift or sale to a person resident in India who is a citizen of India.
- by way of gift to a person resident in India or to person resident outside India who is a citizen of India or to a person of India origin resident outside India.
- who is a citizen of India, or a person of Indian origin, the authorised dealer may allow repatriation of the sale proceeds outside India, provided all the following conditions are satisfied: (i) the immovable property was acquired by the seller in accordance with the provisions of the Exchange Control Rules/Regulations/Law in force at the time of acquisition, or the provisions of the Regulations framed under the Foreign Exchange Management Act, 1999; (ii) the sale takes place after three years from the date of acquisition of such immovable property or from the date of payment of final installment of consideration for its acquisition, whichever is later (iii) the amount to be repatriated does not exceed 1. the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels or out of funds held in foreign currency non-resident account or 2. 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 (iv) in the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.
Repatriation outside India, including credit to RFC, NRE or FCNR account, of sale proceeds of any immovable property situated in India, requires prior permission of the Reserve Bank except in circumstances stated in paragraph 13 below.
All requests for acquisition of agricultural land/plantation/property/farm house by any person resident outside India or foreign nationals may be made to the-Chief General Manager, Reserve Bank of India, Central Office, Exchange Control, Department, Foreign Investment Division (III), Mumbai – 400001.
The NRIs/PIOs can freely rent out their immovable property in India without seeking any permission from the Reserve Bank. The rental income being a current account transaction is freely reportable outside India.
P.S – For the purposes of transactions, i.e., transfer, sale, purchase, etc., dealing with immovable property in India, a person of Indian origin is defined as under: “an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who at any time, held Indian passport; or who or either of whose father or whose grandfather was a citizen of India by virtue of the constitution of India or the Citizenship Act, 1955 (57 of 1955).”