NRI Can Purchase Property in India easily now

The government has decided to permit persons of Indian origin (PIO) to buy property in India without the mandatory approval of the Reserve Bank of India (RBI). It is also working on amending the current Foreign Exchange Management Act (Fema) guidelines to remove a 'gender bias' enabling non-residents whose mothers or grandmothers were citizens of India to buy real estate in the country. The existing rules permit only those PIOs to buy property in India whose father or grandfather were Indian citizens.The proposal from the ministry of overseas Indian affairs seeks to make real estate purchases by overseas Indians hassle-free. Current laws restrict investments by PIOs in real estate, causing delays extending to over a year. RBI and the home ministry have given in-principle approval to the proposal, sources said.However, PIOs based in Pakistan and Bangladesh would still be required to seek mandatory RBI approval before buying or transferring property here."There is consensus on the need to streamline and adopt a uniform definition of PIOs in matters dealt with by various ministries and to remove the gender discrepancy in the Fema notification. Visa requirement would also be waived for investments by PIOs," an official involved in framing the policy said.Apart from PIO card holders, registration of properties is not allowed to foreigners holding a visa other than "business". The home ministry is at present reviewing this norm which insists on business visa for foreigners acquiring properties in India, the official said.The diaspora includes several prominent high net worth individuals in academics, research and development, politics and social services. Officials said such measures would go a long way in tapping the diasporic human resource and financial capital for developing the country's domestic enterprise and social sector. In order to tap the diaspora entrepreneurship, the country is also encouraging joint ventures and partnerships with the diasporic professionals in the growing sectors of the economy like education, information technology, low cost manufacturing and SME.India is the highest recipient of NRI remittances. Diaspora Indians do invest heavily in Indian markets. The government and the RBI feel that it is the need of the hour to harness such remittances and investible funds to generate vast amounts of capital to finance India's industrial and agricultural projects.