India warns of foreign nationals illegally buying property

Mumbai, India Photo: A Kap

Under India's current Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) laws, Indian foreign nationals - that is, citizens who reside outside of the country - are allowed to buy any property in India other than agricultural land, plantation property or a farm house. Foreign companies with an office in the country are allowed to purchase real estate necessary for continuing their commercial activity.

However, notes The India Times, a number of foreign nationals are breaking the regulations and buying immovable property illegally in some areas of the country, the Finance Ministry has warned.

"It has also been observed that foreign nationals coming to India and staying beyond 182 day on a tourist or other visa meant for a certain period are illegally acquiring immovable property in India in violation of the extant rules and regulations under FEMA," said the Ministry.

The Ministry advised officials in State Governments to be "extra vigilant" in such matters.

The caution follows a recent restriction for Indians planning to invest overseas too, with authorities confirming in July 2014 that acquisition of immovable real estate abroad would continue to be banned.