Saturday, August 2, 2014

FinMin tells States to track real estate deals by foreigners

The Finance Ministry has advised States to be “extra vigilant” while registering property purchased by foreign nationals.

State authorities need to satisfy themselves about the eligibility of foreign nationals under the Foreign Exchange Management Act (FEMA) before registering the sale or purchase of immovable property in India, the Finance Ministry said in a statement.

Buyers, sellers under scanner

Inquiries may cover both intending buyers and sellers, it said, adding that the relevant travel documents and nature of visa may also be verified before registering such a sale/purchase.

The Ministry’s advisory comes in the wake of increasing instances of foreign nationals coming to India and staying beyond the stipulated 182 days on a tourist or other visa and illegally acquiring immovable property in violation of FEMA rules and regulations.

Currently, a foreign national who has resided in India for more than 182 days in a preceding financial year — for employment, carrying on business/vocation or any other purpose, and indicating his intention to stay for an indefinite period — can acquire immovable property.

Residency status

Such a foreign national can do so as he would be a “person resident in India”, according to Foreign Exchange Management Act regulations.

To be eligible, the intention to stay has to be unambiguously established with supporting documentation, the Ministry statement said.
Source : http://www.thehindubusinessline.com/

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...

Farm House Plots for Sale


11000 Sq.ft. developed / under development farm house plots for Sale at Morgaon (Supa) near Morgaon Ganesh Temple only for Rs.15 Lacs.... Contact; Atul Karnawat on 9823479955 or Saideep Bagrecha on 7757888883 / 9823979955