Repatriation Of Realty Sale Proceeds Eased

The Reserve Bank of India (RBI), in a bid to liberalise the exchange control regulations and provide additional facilities to the non-resident Indians/persons of Indian origin (NRIs/PIOs), has remo-ved the lock-in period of three-years for repatriation of sale proceeds of immovable property purchased in India by them through inward remittances.

The RBI, however, has retained the clause which states that the sale proceeds allowed to be repatriated should not exceed the foreign exchange brought in to acquire the property. This liberalised facility of remittance will also be available to the NRIs/PIOs who have already made payment for acquiring immovable property in India.

Currently NRIs/PIOs are permitted to repatriate sale proceeds of immovable property only after a lock-in period of three years from the date of acquisition or payment of final instalment for the purchase, whichever is later. The repatriation of proceeds is limited to the forex brought into purchase the property.

The RBI, in a statement, said that a notification for carrying out suitable amendments in the regulations is being issued and on its publication in the Official Gazette, it would be possible for NRIs/PIOs to effect such remittances without the prior approval of the RBI. Until further notice, the applications for such remittances may be made to the regional offices of the RBI.