Foreign Exchange Management Act (FEMA)
4. Immovable Property outside
Earlier, under FERA, there was
no restriction placed on foreign citizens who were residents of India,
for acquiring immovable property outside India.
Now FEMA prohibits a resident to
acquire, own process, hold or transfer any immovable property situated outside India.
This restriction applies irrespective of whether the resident is an Indian
citizen or foreign citizen. With this provision being effective a foreign
citizen who is a resident in India
has to take approval of Reserve Bank of India
for selling or buying any immovable property situated outside India.