Rules that make it easy for NRIs to buy property in India
Friday, March 11, 2011http://economictimes.indiatimes.com/quickiearticleshow/7677754.cms
It makes sense for non-resident Indians (NRIs) and persons of Indian origin (PIOs) to invest in property in India. A NRI is a person who is not resident in India.
According to the Foreign Exchange Management Act (FEMA), 'person resident in India' includes a person residing in India for more than 182 days during the course of the preceding financial year. It does not include a person who has gone out of India on employment, business or vocation, or for any other purpose for an uncertain period.
Also, a person who has come to stay in India other than on employment, business or vocation, or for any other purpose for an uncertain period. All other persons are NRIs. NRIs are permitted to buy and sell property in India. The acquisition and transfer of property by NRIs should be in accordance with the FEMA.
The property should be purchased through a registered conveyance deed. It may also be purchased on a power of attorney. In the latter case, an agreement to sell and a power of attorney are executed by the seller in favour of the buyer.
