But RBI’s permission is needed to buy agricultural land, farm houses, plantation property
Those holding Overseas Citizen of India (OCI) cards need Reserve Bank of India’s (RBI) permission to buy agricultural land, farm houses and plantation property. But they need not seek the RBI’s prior approval to buy or transfer immovable property in India, said the apex bank in a clarification after it received a large number of queries based on newspaper reports on a Supreme Court Judgment.
The Supreme Court’s judgment on February 26, 2021, in a civil appeal was related to provisions of FERA which has been repealed. At present, NRIs and OCIs are governed by provisions of FEMA and do not require prior approval of the RBI for acquisition and transfer of immovable property in India, other than agricultural land, farm house and plantation property. The sale and transfer will have to be as per the terms and conditions laid down in Chapter IX of the FEMA (Non-debt Instruments) Rules of October 17, 2019, said the RBI.
In a statement, the RBI said it had received several queries based on reports on a Supreme Court judgment. “It is hereby clarified that the… judgment dated February 26, 2021 in Civil Appeal 9546 of 2010 was related to provisions of FERA, 1973, which has been repealed under Section 49 of FEMA, 1999,” it said.
“At present, 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, as per the terms and conditions laid down in Chapter IX of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, dated October 17, 2019 (as amended from time to time), issued under Section 46 of FEMA 1999,” it added.
