Naved Qureshi

Prior to 2005, only NRI's and PIO's were allowed to invest in the housing and the real estate sectors. Foreign investors other than NRIs were allowed to invest only in development of integrated townships and settlements either through a wholly-owned subsidiary or through a joint venture (JV) company along with a local partner. Prior to 2005, only NRI's and PIO's were allowed to invest in the housing and the real estate sectors. Foreign investors other than NRIs were allowed to invest only in development of integrated townships and settlements either through a wholly-owned subsidiary or through a joint venture (JV) company along with a local partner. India fully opened doors for FDI in real estate in India fully opened doors for FDI in real estate in Background

Investing in India Automatic Route General Rule No prior Permission Required Only informing RBI within 30 days of issue and reciept of funds Government Route (FIPB) Prior Permission Required

Projects Allowed Projects Allowed Townships Townships Housing Housing Built-up Infrastructure Built-up Infrastructure Construction Development Construction Development which would include but not limited to housing, Commercial Premises, Hotels, resorts, Hospitals etc which would include but not limited to housing, Commercial Premises, Hotels, resorts, Hospitals etc FDI permitted 100% under Automatic Route

Guidelines for FDI Application in Indian Real Estate

In case of development of serviced housing plots, 10 hectares (25 acres) In case of development of serviced housing plots, 10 hectares (25 acres) In case of construction-development projects, built-up area of 50,000 sq m. In case of construction-development projects, built-up area of 50,000 sq m. In case of a combination project, any of the above two conditions In case of a combination project, any of the above two conditions Minimum Area

Minimum capitalization Minimum capitalization -for wholly owned subsidiaries - US$ 10 million -for JV with Indian partners - US$ 5 million (to be brought in within 6 months of commencement of business ) Original Investment cannot be repatriated before a period of three years from completion of capitalization. Original Investment cannot be repatriated before a period of three years from completion of capitalization. The investor may exit earlier with prior approval from Foreign Investment Promotion Board (FIPB). The investor may exit earlier with prior approval from Foreign Investment Promotion Board (FIPB). Investment

At least 50 per cent of the project to be developed within five years from the date of obtaining all statutory clearances. At least 50 per cent of the project to be developed within five years from the date of obtaining all statutory clearances. Investor cannot sell undeveloped plots - where roads, water supply, street lighting, drainage, sewerage and other conveniences are not available. Investor cannot sell undeveloped plots - where roads, water supply, street lighting, drainage, sewerage and other conveniences are not available. Project to conform to the norms and standards of Local Body concerned Project to conform to the norms and standards of Local Body concerned Time Frame & Rules

The Investments made by NRI in any of the Township, Housing, Built Up, infrastructure and Construction Development Projects also does not attract conditions as to Minimum Area of Development, Capitalisation and Time frame Investment by NRI

A foreign company establishing Branch Office or other place of business in India, can acquire any immovable property in India, which is necessary for or incidental to carrying on such activity. A foreign company establishing Branch Office or other place of business in India, can acquire any immovable property in India, which is necessary for or incidental to carrying on such activity. The payment for acquiring such property to be made by way of foreign inward remittance through proper banking channel. A declaration in form IPI should be filed with Reserve Bank within ninety days from the date of acquiring the property. The payment for acquiring such property to be made by way of foreign inward remittance through proper banking channel. A declaration in form IPI should be filed with Reserve Bank within ninety days from the date of acquiring the property. On winding up of the business, the sale proceeds of such property can be repatriated only with the prior approval of Reserve Bank. On winding up of the business, the sale proceeds of such property can be repatriated only with the prior approval of Reserve Bank. Immovable Property purchase by Foreign Company in India