Investment in Property in India by Non Resident Indian [ NRI ]

From the time of the Foreign Exchange Regulation Act (FERA) regime Non-resident Indians (NRIs) are usually very apprehensive while purchasing immovable property in India, their home country. Now that the more sober act the Foreign Exchange Management Act (FEMA), is in place there is a reason to believe that NRI's can invest in Indian property market.

Type of property
The Reserve Bank of India (RBI) has issued a notification granting general permission to NRIs for purchase of residential or commercial property in India without obtaining any clearance from the central bank. Further more there is no restriction on number of residential or commercial properties NRI's can purchase. NRI's still cannot purchase agricultural land, plantation property and even a farmhouse. 

Funds
The payment for purchase of property can be made by way of remittance through banking channels from abroad or from money lying in their NRE / NRO or FCNR accounts. The money for purchase of the permitted properties has to come only through banking channels hence the payment cannot be tendered in the form foreign currency notes. NRIs can even raise funds through home loan in Indian rupees. EMI for the home loan can be paid either by direct remittance from abroad or from the money lying in NRE/NRO/FCNR accounts or out of the rent received from such property or money transferred to borrowers account from the account of relatives of such borrower. funds lying in the FCNR or NRE account can be a underlying security for the home loan. 

Ownership

The property can be owned either in a single name or jointly with another NRI. A joint owner can not be a permanent resident in India. 

If at the time of changing the status from Resident Indian to Non Resident Indian the person owns a property or even an agricultural land or a farm house the same will continued to be owned by him without any hassles. 

A peaceful mind can think better than a worked up mind.

There once was a farmer who discovered that he had lost his watch in the barn. It was no ordinary watch because it had sentimental value for him. After searching high and low among the hay for a long while; he gave up and enlisted the help of a group of children playing outside the barn.

 

He promised them that the person who found it would be rewarded.

 

Hearing this, the children hurried inside the barn, went through and around the entire stack of hay but still could not find the watch. Just when the farmer was about to give up looking for his watch, a little boy went up to him and asked to be given another chance.

 

The farmer looked at him and thought, "Why not? After all, this kid looks sincere enough."

 

So the farmer sent the little boy back in the barn. After a while the little boy came out with the watch in his hand! The farmer was both happy and surprised and so he asked the boy how he succeeded where the rest had failed.

 

The boy replied, "I did nothing but sit on the ground and listen. In the silence, I heard the ticking of the watch and just looked for it in that direction."

 

Moral:

 

A peaceful mind can think better than a worked up mind. Allow a few minutes of silence to your mind every day, and see, how sharply it helps you to set your life the way you expect it to be...!

Arbitration Law

A dissatisfied party may apply to the court for setting aside the Award, subject to the conditions as mentioned in Section 34(2) and 34(3). An Arbitral award may be set aside by the court only if the party making the application proves that: 

• It was under some incapacity
• The arbitration agreement is not valid under the law
• The party was not given proper notice of the arbitral proceedings
• The award deals with a dispute not within the ambit of arbitration. 
• The composition of the tribunal or the arbitral procedure was not in accordance with the agreement. 
• The dispute cannot be settled by arbitration under the law for the time being. 
• The award is in conflict with the public policy of India 

The maximum permissible period for an application to set aside the award is a period of three months.