Person of Indian Origin (PIO) may get to buy property in India without RBI Approval, Visa

The government is planning to allow Persons of Indian Origin (PIO) to buy property in India without mandatory RBI approval and without the hassles of producing a valid visa. The current Foreign Exchange Management Act (FEMA) guidelines are also being amended to remove a ‘gender bias' where non-residents whose mothers or grandmothers were citizens of India will also be allowed to buy Real Estate in the country. The existing rules permit only those PIOs to buy property in India whose father or grandfather were Indian citizens.

The proposal mooted by the ministry of overseas Indian affairs seeks to make buying of Real Estate by overseas Indians hassle-free and comes as a breather for Real Estate firms who can now expect more buyers from abroad to invest or buy property at a time when domestic demand is low. Current laws restrict investments by PIOs in Real Estate, causing delays extending to over a year. A source said the finance ministry, the RBI and the home ministries have given in—principle approval to the proposal. Now, the only need is for it to be vetted by a committee of secretaries.

A government source told ET that the Indian Diasporas living in Sri Lanka, China, Iran, Nepal Bhutan and Afghanistan will be allowed to buy Real Estate in India without obtaining any permission from the RBI.