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With the opening up of Indian economy, many foreign nationals, Non resident Indians, Persons of Indian Origin have been allowed to invest in real estate in India. Since transfer of foreign exchange is involved, appropriate rules have been framed in FEMA (Foreign Exchange Management Act). The applicable rules for investments in immovable property in India are known as FEM (A&TI) Regulations, 2000.
Foreign Nationals, foreign companies, NRIs, PIOs, OCIs (Overseas Citizen of India) have been barred from acquiring agricultural properties, farm houses and plantation properties.
Residential and commercial properties, other non agricultural properties can be acquired in India, by anyone irrespective of the nationality and residential status of the transferor of transferee, as a rule. There are certain restrictions to it, however based on nationality and residential status, like for development of integrated townships.
