Real estate deals by foreigners will be tracked by the state governments: Finance Ministry
The matter of registration of immovable property purchased by foreign nationals seems to be under the radar of the finance ministry now. The Finance Ministry has advised the State Government authorities to be ‘extra vigilant’ on this matter.
The State Government authorities need to satisfy themselves about the eligibility of foreign nationals under the Foreign Exchange Management Act (FEMA). And this needs to be done before registering the sale or purchase of any immovable property in India. The finance ministry’s statement was loud and clear on this matter.
The relevant travel documents and the nature of visa may also be verified before registering such sale/purchase. Finance ministry’s statement mentioned that the enquiries may include both the intending buyers and sellers.
This move was taken because there have been increasing instances of foreign nationals buying immovable property illegally in some parts of the country. Many of them are violating the extant rules and regulations under FEMA.
Some foreign nationals are coming to India and staying beyond 182 days on a tourist or other visas meant for a certain period. They are illegally acquiring immovable property in India. This statement issued by the finance ministry aims at those foreign nationals and the ministry is looking at ways to curb this malpractice. If the state governments are vigilant then this can be achieved.
Source- The Hindu Business Line
