Can residential/commercial property be mortgaged by NRI
Question: Can residential/commercial property be mortgaged by NRI?
- 300 Days ago
- Property In India - Business and Finance
Answer(s)
Raju Kanumuri: The sale proceeds of immovable property acquired by way of gift should be credited to NRO account only. From the balance in the NRO account, NRI/PIO may remit up to USD one million, per financial year, subject to the satisfaction of Authorised Dealer and payment of applicable taxes.NRI / PIO can mortgage a residential/commercial property to :
(a) an Authorised Dealer / the housing finance institution in India without the approval of Reserve Bank
(b) a bank abroad, with the prior approval of the Reserve Bank.
A foreign national of non-Indian origin can mortgage a residential/commercial property only with prior approval of the Reserve Bank.
A foreign company which has established a Branch Office or other place of business in accordance with FERA/FEMA regulations has general permission to mortgage the property with an Authorised Dealer in India.
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