Lifting of lock-in period for repatriation of sale proceeds of immovable property situated in India
AP (DIR Series) (2002-2003) Circular No. 35, dated 1-11-2002
Lifting of lock-in period for repatriation of sale proceeds of immovable property situated in India
Attention
of authorised dealers is invited to Regulation 6 (b) (ii) of
Reserve Bank Notification No. FEMA 21/2000-RB dated May 3, 2000 in terms of
which authorised dealers have been permitted to allow Non-Resident
Indians/Persons of Indian origin, (NRIs/PIOs) to repatriate sale proceeds of
immovable property (other than agricultural land/farmhouse/plantation property)
in India, provided the sale takes place after three years from the date of
acquisition of such property or from the date of payment of final instalment of
consideration for its acquisition, whichever is later.
2. Reserve
Bank has issued Notification No. FEMA 65/2002-RB dated June 29, 2002 (copy
enclosed) amending the Notification cited above, removing the existing lock-in
period for repatriation of the sale proceeds of immovable property purchased in
India by NRIs/PIOs. Accordingly, it will be in order for authorised dealers to
allow remittance of sale proceeds of immovable property in India acquired by
NRIs/PIOs, irrespective of the period for which the property was held. The sale
proceeds allowed to be repatriated should, however, not exceed the
foreign exchange brought in to acquire the property.
3. Authorised
Dealers may bring the contents of this circular to the notice of their constituents
concerned.
4. The
directions contained in the circular have been issued under section 10 (4) and
section 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999).