The Finance Ministry has advised State Government authorities to be ‘extra vigilant’ on the matter of registration of immovable property purchased by foreign nationals.

They (State Government authorities) need to satisfy themselves about the eligibility of foreign nationals under the Foreign Exchange Management Act (FEMA) before registering sale or purchase of immovable property in India, the Finance Ministry has said in a statement.

The enquiries may include both the intending buyers and sellers, it said, adding that the relevant travel documents and the nature of visa may also be verified before registering such sale/purchase.

This advisory comes in the wake of increasing instances of foreign nationals buying immovable property illegally in some parts of the country.

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

Currently, a foreign national who is residing in India for more than 182 days in a preceding financial year—for employment, carrying on business/vocation or any other purpose indicating his intention to stay for an uncertain period—can acquire immovable property in India.

Such a foreign national can do so as he would be a ‘person resident in India’ as per FEMA.

To be treated as a person resident in India under FEMA, the person concerned has not only to satisfy the condition of the period of stay (being more than 182 days during the course of the previous financial year), but also his purpose of stay as well as the type of Indian visa granted to him to clearly indicate the intention to stay in India for an uncertain period.

In this regard, to be eligible, the intention to stay has to be unambiguously established with supporting documentation including visa, the finance ministry statement said.

>Srivats.kr@thehindu.co.in

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