Purchase/Sale of Immovable Property by Foreign Embassies/Diplomats/Consulate Generals

A.P. (DIR Series) (2003-2004) Circular No.19, Dated 23-9-2003,
issued by Exchange Control Department, RBI

Attention of Authorised Dealers is invited to Regulation 5 of Notification No. FEMA. 21/2000-RB dated May 3, 2000 regarding acquisition of immovable property in India by a person resident outside India for carrying on a permitted activity.

2. The matter has been reviewed in consultation with Government and it has been decided to allow a Foreign Embassy/Diplomat/Consulate General to purchase/sell immovable property in India other than agricultural land/plantation property/farm house provided (i) clearance from Government of India, Ministry of External Affairs is obtained for such purchase/sale, and (ii) the consideration for acquisition of immovable property in India is paid out of funds remitted from abroad through banking channel. Accordingly, Reserve Bank has issued Notification No. FEMA.93/2003-RB dated June 9, 2003 amending the existing Regulation by inserting Regulation 5A in the said Notification.

3. Authorised Dealers may bring the contents of this circular to the notice of their constituents concerned.

4. The directions contained in this circular have been issued under section 10(4) and section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).