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NRI and PIO investments in Indian real estate is single largest allocation of hard earned money. We understand that it is challenging for NRIs to deal with Indian real estate market because of its unregulated nature, lack of transparency, risk of encroachment, risk of unauthorized use and occupation, risk of being misled. Having us as trusted partners. 
NRIs can overcome many of the challenges. 
INDIA CALLING

 

A NRI or Person of Indian Origin can own residential and/or commercial properties in Indiaand there are no restrictions on the number of properties that can be owned. However, a NRI/PIO cannot purchase any farm house, agricultural land and plantation property. The monetary transactions should take place in INR and through normal banking channels only through a NRI operated NRE/NRO account.

 

The RBI & FEMA have clearly laid down that a NRI can only make specific investments in the real estate sector such as

  • Any immovable property can be purchased except agricultural land, farm house and plantation property.

  • He can get an immovable property as a gift from an Indian resident or an Indian citizen residing outside India or PIO.

  • Obtain a real estate property through inheritance as NRI.

  • Transfer the immovable to any Indian resident by way of sale.

  • He can actually transfer any agricultural land, farm house or plantation property to a Resident Indian through gift.

  • He can transfer his residential or commercial property to a person residing in India/abroad or a PIO by gift.

 

NRIs consider financial lending institutions as one of the best means of obtaining financial assistance while purchasing a property in India. The  institutions too, on their part, regard the NRIs as esteemed clients and offer them home loans easily as they are very prompt in repayment.

However, RBI has laid down some norms for home loans given to NRIs who are looking to buy a property in India

  • A maximum of 80% amount can be financed by the financial institutions and the rest should be borne by the NRI. This is almost similar to those for resident Indians.

  • The amount of the down payment must be remitted through the normal banking channels such as NRO/NRE account in India. If you’re paying cash also, it must be funded through NRE/NRO account.

  • The NRI needs to repay the principal and the interest through the banking channel only.

Investing in properties in India is therefore a lucrative option for NRIs. But the joy can be a short-lived one if the papers are not in proper order or if there are some missing papers.

But things can get a lot easier if a person acquires property documents which are fully legal, free-held and are approved. 

 

Any NRI who wishes to invest in a property in India must hold a valid Indian passport. But if he is a foreign country passport holder then he must acquire a Person of Indian Origin or PIO card through that country’s consulate or embassy.

The passport should clearly show the Visa stamp and date of entry. But there is an exception to this rule. A NRI who holds his/her birth certificate or the Indian passport of his parents can also invest in a property in India.

 

A NRI needs to submit substantial documents in support of his address in India. The acceptable list of documents include telephone bill, ration card, electricity bill, LIC policy, cell phone bill or any utility bill. If he is submitting ration card then he needs to furnish one more document in support of his Indian address.

For his overseas residential proof he can submit the equivalent of any of these documents and some additional documents like

  • Driving license

  • Identity card

  • Work permit

  • Social security card

  • Copy of credit card and the

  • Last 6 months bank statements of all NRE/NRO accounts in India

The NRI may also submit the POA (proof of address) Card from the local Postal Department that serves as both ID and POA proof. But care must be taken to ensure that all proofs are submitted in the name of the primary applicant only. If the address proof and Visa is in any language other than English then a notarized translated copy (English) must be submitted.

The NRIs who reside in the Middle East must produce a copy of the Employment Card in addition to the regular mandatory documents. All documents must be certified by the Indian Embassy and the salary/income document must be attested by the employer if the salary is not being credited in the bank.