Liberalization in NRI real estate policy

[Cone94]

Person resident outside India under FEMA has been defined as a Non Resident Indian or NRI. Non-Resident Indians are now permitted to enter into the business of real estate development. This can be done by either forming a partnership firm or investing in a company incorporated in India. The Reserve Bank of India has relaxed certain provisions with regard to investment in Indian companies engaged in housing and real estate development.

This change in NRI policy has added spurt to the construction and real estate sector in Kerala. Kerala flat (http://www.jairajbuilders.com/) and apartment builders have be infused with fresh blood and the inflow of much needed finance in to the sector moots well for the industry.

Under the general permission to NRIs holding foreign passport, the RBI has allowed them to acquire, hold, transfer or dispose off by way of sale or inheritance, immovable properties situated in India. The taxation provisions relating to purchase/sale of immovable property in India by NRIs are provided in the Income-Tax Act, 1961. Consequent on the liberalization in Exchange Control policy and procedures, the government has brought about major legislative and policy changes to encourage NRI investments in real estate subject to certain terms and conditions.

The RBI has also granted general permission to NRI citizens and foreign citizens of Indian origin, to let out their residential properties acquired for their legitimate residential purpose but which due to their foreign residence, are not required for their immediate residential purpose. The rental income is freely repatriable outside India.

In addition to all these, NRIs can now buy immovable properties in any country outside India and retain them even after their return to India for permanent settlement. Moreover, the amount lying in the Resident Foreign Currency Account (RFC) can also be utilized after their return to India for the subsequent purchase of immovable property abroad.

[vikas2607]

NEW DELHI: The Central Government on Friday cleared 18 foreign direct investment (FDI) proposals worth Rs. 1,553.26 crore. This includes Essar Capital’s plans to acquire the status of holding company to make investment in downstream finance and non-banking financial sector and induction of equity shares by Essar Global for Rs. 560 crore. The proposals also include Bharat Connect’s plan to change the status of an operating company into an operating-cum-holding company to make downstream investment in NBFC companies for Rs. 250 crore.

Redington India’s proposal for induction of foreign equity by a holding company in a company by way of acquisition of shares for Rs. 195 crore was also approved by the Government.

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[nancyarora2020]

India is now reckoned as one of the fastest growing economies of the world, propelled by a world-class service industry and a resurgent manufacturing sector. Economic liberalization programs have unleashed the latent potential of the Indian economy. Various strategic initiatives undertaken by the government over the last few years have borne results, as manifested in the overall economic boom. In tune with these developments, the Indian real estate sector has witnessed significant transformation in recent years. Real estate in India is a "sunshine industry" that is flourishing rapidly as well as enhancing the country's image as a preferred investment and business destination.The Indian government has recognized the importance of this sector for the overall development of the country and has been working steadily to remove impediments. Liberalization of foreign investment norms and the sanction of private equity/ venture capital funding in real estate, has been welcomed by the industry and the financial sector. The government's thrust on infrastructure, through policy, financial and administrative frameworks is positively impacting real estate markets. Furthermore, the authorities are contemplating the establishment of a regulatory body for this sector as well as the introduction of a housing price index, both of which are reckoned as path-breaking moves for the benefit of the end user.The continued alignment of Indian economy with that of the world has resulted in India attracting multinational corporates seeking new consumer bases, raw material sources, world class manufacturing capabilities and enormous talent pool, all of which have dramatically changed the business environment in India. Real estate markets, too, have steadily evolved since the mid-1990s in response to a host of changes in the business environment.For more visit- realtydigest.blogspot.com