On Wednesday Reserve Bank said NRIs and OCIs do not require its prior approval for acquisition and transfer of immovable property in India other than the agricultural land, farm house and plantation property.
The clarification has been issued by Reserve Bank of India (RBI) following queries received at its various offices with regard to acquisition of immovable properties by Overseas Citizens of India (OCIs) in the wake of a Supreme Court judgment relating to Foreign Exchange Regulation Act (FERA).
RBI said in a release, “It is hereby clarified that the concerned Supreme Court Judgment dated February 26, 2021 in Civil Appeal 9546 of 2010 was related to provisions of FERA, 1973, which has been repealed under Section 49 of FEMA, 1999.”
At present, the central bank said “NRIs/OCIs are governed by provisions of FEMA 1999 and do not require prior approval of RBI for acquisition and transfer of immovable property in India, other than agricultural land/ farm house/ plantation property…”
NRIs are Non-Resident Indians.
Further, the central bank said that a large number of queries have been received at its various offices based on newspaper reports on the Supreme Court judgement.