Under Section 6(5) of FEMA, a person resident outside India can hold, own or transfer immovable property in India if such property is acquired by him when he was a resident in India or inherited from a person resident in India. Thus, this provision facilitates the ownership and transfer of immovable property in India by former residents and there is no impediment to their continuing to hold such property or transfer such property even when they become NRI. However, an NRI should be very cautious in dealing with reputed builders or agents only. If there is a proposal for joint investment, he should make sure that the money reaches the right person only. He should also ascertain the exact contribution and the extent of ownership in joint investments. |
