Repatriation of
sale proceeds of immovable property in India acquired by NRIs/PIOs
A.P. (DIR Series) (2002-2003) Circular No. 101, dated 5-5-2003
Attention of
authorised dealers is invited to clause (iii) of sub-regulation (b) of
Regulation 6 of Notification No. FEMA 21/2000-RB dated 3rd May, 2000 read with
Notification No. FEMA 65/2002-RB dated 29th June, 2002 in terms of which,
authorised dealers have been permitted to allow repatriation of sale proceeds
of immovable property (other than agricultural land/plantation property/farm
house) acquired by NRIs/PIOs to the extent of the amount paid by them for
acquisition of immovable property in foreign exchange received from abroad
through normal banking channels or out of the funds held in their NRE/FCNR accounts.
2. Similarly, in terms of
Regulation 8 of Notification No. FEMA 4/2000-RB dated 3rd May, 2000, authorised
dealers or housing finance institutions in India approved by National Housing
Bank are permitted to provide housing loan to NRIs/PIOs for acquisition of
residential accommodations in India, subject to the conditions stipulated
therein.
3. It has now been decided that
where the loan amount so raised for purchase of residential accommodation is
subsequently repaid by NRIs/PIOs by remitting funds from abroad or by debit to
their NRE/FCNR accounts such repayments in foreign exchange of rupee loans
obtained for acquiring residential accommodation may be treated as equivalent
to foreign exchange received for the purpose of clause (iii) of sub-regulation
(b) of Regulation 6 of Notification No. FEMA 21/2000-RB dated 3rd May, 2000
referred to above, as amended from time to time.
4. Accordingly, it will be in
order for authorised dealers to allow repatriation of sale proceeds of
residential accommodation purchased by NRIs/PIOs out of funds raised by them by
way of loans from the authorised dealers/housing finance institutions to the
extent of such loan/s repaid by them out of foreign inward remittances received
through normal banking channel or by debit to their NRE/FCNR accounts.
5. Authorised Dealers may bring
the contents of this circular to the notice of their constituents concerned.
6. 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).