RBI Circular dated February 15, 2012 - Clarification - Purchase of Immovable Property in India – Reporting requirement

RBI Circular – February 15, 2012:

We draw your attention to the RBI Circular RBI/2011/12/399 A.P. (DIR Series) Circular No. 79 dated February 15, 2012. 

Applicability:

This circular is applicable to:

-          all the authorized dealers in Foreign Exchange, 

-        all the persons resident outside India who has established a branch, office or other place of business in India  in accordance with the Foreign Exchange Management (Establishment in India of Branch or Office or other Place of Business) Regulations, 2000.

Exemptions:

The liaison office is excluded.

Purpose of this Circular:

This circular has been brought in to bring in greater clarity when an immovable property has been acquired by a person who is a citizen of India or a Person of Indian Origin.

Crux of the Circular:

As per this circular when the above said persons acquire any immovable property in India in accordance with the provisions of the said regulation, then the said person has to file a declaration in the specified format (Form IPI annexed to the RBI circular RBI/2011/12/399 A.P. (DIR Series) Circular No. 79 dated February 15, 2012 ) to the RBI within 90 days from the date of such acquisition.

RBI Circular: http://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=7008