CIR. NO.101/2002-03-RB, DT. 05/05/2003
- Document type
- Circular
- Reference no.
- C
- Dated
- Category
- A.P. (DIR Series) Circulars
Repatriation of sale proceeds of immovable property in India acquired by NRIs / PIOs
Repatriation of sale proceeds of immovable property in India acquired by NRIs / PIOs
2. Similarly, in terms of Regulation 8 of Notification No.FEMA 4/2000-RB dated 3rd May 2000, authorised dealers or housing finance institutions in India approved by National Housing Bank are permitted to provide housing loan to NRIs/PIOs for acquisition of residential accommodations in India, subject to the conditions stipulated therein.
3. It has now been decided that where the loan amount so raised for purchase of residential accommodation is subsequently repaid by NRIs/PIOs by remitting funds from abroad or by debit to their NRE/FCNR accounts such repayments in foreign exchange of rupee loans obtained for acquiring residential accommodation may be treated as equivalent to foreign exchange received for the purpose of clause (iii) of sub-regulation (b) of Regulation 6 of Notification No.FEMA 21/2000-RB dated 3rd May 2000 referred to above, as amended from time to time.
4. Accordingly, it will be in order for authorised dealers to allow repatriation of sale proceeds of residential accommodation purchased by NRIs/PIOs out of funds raised by them by way of loans from the authorised dealers/housing finance institutions to the extent of such loan/s repaid by them out of foreign inward remittances received through normal banking channel or by debit to their NRE/FCNR accounts.
5. Authorised Dealers may bring the contents of this circular to the notice of their constituents concerned.
6. The directions contained in the circular have been issued under Section 10 (4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).
Yours faithfully,
Grace Koshie
Chief General Manager