Rules pertaining to purchase and ownership of immovable property in India are governed by the Reserve Bank of India. A summary of the current prevailing laws are enumerated below. Click hereto view full details on Reserve Bank of India's official website.

Rules for NRIs (Non Resident Indians) and PIOs (Persons of Indian Origin):

·     An NRI is defined as a person residing outside India who is a citizen of India.

·     A PIO is defined as a person who has at any time held an Indian passport, or whose father or grandfather has been a citizen of India.

·     NRIs & PIOs are permitted to purchase any number of residential/commercial properties in India. No special permission or filing of documents is required with the RBI.

·     Under the general RBI permission available to NRIs & PIOs, funds must be remitted to India through normal banking channel or funds held in his NRE / FCNR (B) / NRO account. No consideration should be paid outside India.

·     The NRI / PIO may repatriate the sale proceeds of immovable property in India acquired by way of inward remittance through normal banking channels or by debit to NRE /FCNR (B) account. The amount to be repatriated should not exceed the amount paid for acquisition of the immovable property. Repatriation of sale proceeds of residential property purchased by NRI / PIO out of foreign exchange is restricted to not more than two such properties. Capital gains, if any, may be credited to the NRO account from where the NRI/PIO may repatriate an amount up to USD one million per financial year subject to tax compliance.

(Please refer the RBI Website for full details)