By Accommodation Times News Services
The Reserve Bank of India is forecasting to relax the restrictions under the Foreign Exchange Management Act (FEMA), to ease the process of buying property in India jointly with their spouse holding foreign passports could soon be allowed to do so.
As per the current norms if an NRI wants to buy a house or any other real estate as a joint property with a foreign citizen spouse it is dealt as a special one needing a prior permission from the RBI on a case-by-case basis. But after the necessary amendments it will be possible for NRIs to buy property in India jointly with their spouse holding foreign passports.
RBI executive director, G Padmanabhan, said “There is also a restriction on NRIs/PIOs acquiring property in India jointly with their spouse if she/he is neither resident in India nor an NRI nor a PIO. Such cases require prior approval of RBI and of late, there has been an increase in number of such cases. This is an issue that requires examination in consultation with the Government of India. In fact, I have directed an comprehensive review of FEMA 21.”
RBI’s Notification No. FEMA 21/2000 specifies the rules which permit an NRI or a Person of Indian Origin (PIO) to acquire immovable property in India, other than agricultural land or, plantation property or farm house.