Can an American Citizen buy a plot of land in Maharashtra?

#1 Mar 19th, 2008, 14:16
Join Date:
Mar 2008
Location:
Mumbai
Posts:
1
  • schumisam is offline
#1
Hi,

I would like to know if an American citizen can buy a plot of land on sole ownership basis in Maharashtra, India?

If not on sole ownership basis, are there other ways, like partnership with an indian citizen, to acquire the land?

Please advice,
Thanks.
#2 Mar 19th, 2008, 23:05
Veda Chanting & Mantra Yoga teacher
Join Date:
Oct 2003
Location:
body in Mumbai, head in Himalaya
Posts:
2,835
  • AvidTrekker is offline
#2

Lightbulb Iffy

Quote:
Originally Posted by schumisam View Post Hi,

I would like to know if an American citizen can buy a plot of land on sole ownership basis in Maharashtra, India?

If not on sole ownership basis, are there other ways, like partnership with an indian citizen, to acquire the land?

Please advice,
Thanks.
In one word, NO. Nowhere in India, to my humble knowledge.

The only way possible is through a Registered Corporate Body. Here too I am not certain whether the foreigner/s would be allowed to hold 51 per cent (controlling stake) shares in the Company.

Companies HAVE done it, with prior permission, ENRON for example. These are for very large projects considered a necessity and "high priority" where the State Govt gives special permissions.

There is a very long thread on it. Someone will pass by and point it out to you soon...

Lease is a legally viable option, to my limited knowledge.
.
.
The Universe is an ellipsoid?... or a Spheroid?? If the sphere smiles... it becomes an ellipse. This IS Creation.
#3 Mar 20th, 2008, 00:03
Join Date:
Sep 2004
Location:
Hollywood/Bangalore/Kochi
Posts:
5,029
  • crvlvr is offline
#3
the answer is , it depends. It depends on how much land you are buying. I believe the Indian law allows corporations to purchase land for real estate development. But, it has to be a large parces (atleast 100 acres or so). I had posted the related law here before. You can trying serching the foruk or google it.

However, AvidTrekker's response is correct for most people who come here and ask the question.

As to partnership, yes that is possible. but, you will be at the mercy of the indian partner.
#4 Mar 20th, 2008, 01:03
Join Date:
Sep 2004
Location:
Northern California
Posts:
3,536
  • dzibead is offline
#4
An American citizen who has PIO ("Person of Indian Origin") status should be able to buy, but otherwise, if you are just an ordinary, garden-variety U.S. citizen, no.

See the LENGTHY discussions in the threads listed in this post (focused on Goa, but the laws applicable to real property purchases by foreign nationals are Central Govt laws applicable to the whole country):
Foreign owned property in Goa - Announcement
#5 Mar 20th, 2008, 01:39
Join Date:
Sep 2004
Location:
Hollywood/Bangalore/Kochi
Posts:
5,029
  • crvlvr is offline
#5
Here are the basic rules for foreign direct investment in India Real Estate:

Quote:
a. Minimum area to be developed under each project would be as under:
i. In case of development of serviced housing plots, a minimum land area of 10 hectares
ii. In case of construction-development projects, a minimum built-up area of 50,000 sq.mts
iii. In case of a combination project, anyone of the above two conditions would suffice

b. The investment would further be subject to the following conditions:
i. Minimum capitalization of US$10 million for wholly owned subsidiaries and US$ 5 million for joint ventures with Indian partners. The funds would have to be brought in within six months of commencement of business of the Company.
ii. Original investment cannot be repatriated before a period of three years from completion of minimum capitalization. However, the investor may be permitted to exit earlier with prior approval of the Government through the FIPB.

c. At least 50% of the project must be developed within a period of five years from the date of obtaining all statutory clearances....
http://www.cncindiafund.com/FDI%20Rules.pdf
#6 Mar 20th, 2008, 01:49
Join Date:
Sep 2004
Location:
Northern California
Posts:
3,536
  • dzibead is offline
#6
An American citizen who is "resident in India" (a status that's NOT easy to establish unless the person is in India long-term on an employment visa, for example) can also buy ordinary real property (i.e. without meeting the multi-million dollar investment threshold).

Here's some info from the Reserve Bank of India website:

"Q.5. Can a foreign national of non-Indian origin be a second holder to immovable property purchased by NRI / PIO?

A.5. No.

Q.6. Can a foreign national of non-Indian origin resident outside India purchase immovable property in India?

A.6. No. A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India. But, he/she may take residential accommodation on lease provided the period of lease does not exceed five years. In such cases, there is no requirement of taking any permission of or reporting to Reserve Bank

Q.7 Can a foreign national who is a person resident in India purchase immovable property in India?

A.7. Yes, but the person concerned would have to obtain the approvals, and fulfil the requirements if any, prescribed by other authorities, such as the concerned State Government, etc However, a foreign national resident in India who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of Reserve Bank. Such requests are considered by Reserve Bank in consultation with the Government of India."
#7 Mar 20th, 2008, 01:55
Join Date:
Oct 2004
Location:
Chennai, India
Posts:
57,084
  • Nick-H is online now
#7
Yes... It's effectively a no.

Similar Threads

Title, Username, & Date Last Post Replies Views Forum
Questions From American Married to Indian Citizen Apr 25th, 2010 20:49 7 4707 India Expat Area
Buying and Selling land in India by OCI (US Citizen) Mar 12th, 2008 15:31 21 38219 Property in India
Registration of a flat as American Citizen ??... Oct 23rd, 2007 04:50 2 2024 Property in India
Buying Plot/land in Faridabad Aug 28th, 2007 05:30 4 2498 Property in India
land buy May 30th, 2007 11:39 2 1878 Property in India


Posting Rules

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Forum Rules»
Trackbacks are Off
Pingbacks are Off
Refbacks are Off
Thread Tools
Display Modes

Search Engine Optimization by vBSEO 3.3.2
© IndiaMike.com 2014
Page Load Success