Can OCI cardholders sell property in India without RBI permission?
The Overseas Citizen of India (OCI) Cardholder is a foreign national holding passport of a foreign country and is not a citizen of India, but falls under the definition as per The Citizenship Act, 1955 is entitled to certain benefits. The benefits are –
1. Grant of multiple entry lifelong visa for visiting India. However, for the following purposes, they shall obtain special permission or a Special permit from competent Authority (like Ministry of Home Affairs), Foreign Regional Registration Officer (FRRO), or the Indian Mission concerned, namely
a. to undertake research
b. to undertake any Missionary or Tabligh or Mountaineering or Journalistic activities
c. to undertake an internship in any foreign Diplomatic Missions or foreign Government organizations in India or to take up employment in any foreign Diplomatic Missions in India
d. to visit any place which falls within the Protected or Restricted or prohibited areas as notified by the Central Government or competent authority
2. Exemption from registration with FRRO or Foreigners Registration Officer for any length of stay in India: However, any changes in the permanent address, the occupation should be intimated to FRRO / FRO via mail
3. Parity with Indian nationals in the matter of
a. tariffs in airfares in domestic sectors in India
b. entry fees to be charged for visiting national parks, wildlife sanctuaries, the national monuments, historical sites, and museums in India
4. Parity with Non-Resident in the matter of
a. inter-country adoption of Indian children subject to the compliance of the procedure as laid down by the competent authority for such adoption.
b. appearing for the all-India entrance tests such as National Eligibility cum Entrance Test, Joint Entrance Examination (Mains), Joint Entrance Examination (Advanced), or such other tests to make them eligible for admission only against any Non-Resident Indian seat or any supernumerary seat (except Provided that the OCI cardholder shall not be eligible for admission against any seat reserved exclusively for Indian citizens)
c. purchase or sale of immovable properties other than agricultural land or a farm house or plantation property.
d. Pursuing the pro professions, namely doctors, advocates, architects, chartered accountants.
5. Parity with foreigners: In respect of all other economic, financial, and educational fields not specified above or notified by RBI under FEMA, OCI Cardholder shall be treated the same as a foreigner.
So, coming to the main question – whether OCI Cardholder can buy, hold, transfer or sell immovable property in India without prior approval of the Reserve Bank of India (RBI)?
Yes. OCI Cardholder is at parity with Non-Resident Indians (NRIs) towards property transactions. As per FEMA, RBI frames the Directions / Regulations concerning the Acquisition and Transfer of immovable property in India.
As per the latest, updated on 11th April 2018, an NRI or an OCI can acquire by way of purchase any immovable property (other than agricultural land/ plantation property/ farm house) in India.
Further, an NRI or an OCI can acquire by way of gift any immovable property (other than agricultural land/ plantation property/ farm house) in India from a person resident in India or from an NRI or an OCI who in any case is a relative as defined in section 2(77) of the Companies Act, 2013
Similarly, an NRI or an OCI can acquire any immovable property in India by way of inheritance from a person resident outside India who had acquired the property in accordance with the provisions of the foreign exchange law in force at the time of acquisition or can also acquire any immovable property in India by way of inheritance from a person resident in India
The above Regulation also permits NRO/OCI to transfer or sell the immovable property without prior permission from RBI, to a person resident in India, NRO or OCI. They can repatriate the funds up to USD 1 million per year; provided in the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.
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