Joint Acquisition of Property
In case of eligibility for joint acquisition a person resident outside India, who is not an NRI or OCI, can acquire immovable property in India jointly with their NRI or OCI spouse. This excludes agricultural land, farmhouses, and plantations. The acquisition is subject to the conditions outlined in Rule 25 of the Foreign Exchange Management (Non-Debt Instrument) Rules, 2019.
Financial Conditions for Joint Acquisition
According to Rule 25 of the Foreign Exchange Management Rules 2019, the following conditions apply to the payment for the transfer of property for permissible sources of payment.
.Funds from Banking Channels:The payment must come from funds received in India through banking channels from outside India.
.NRI Account Funds: Alternatively, the payment can be made from funds held in an NRI account as per the Foreign Exchange Management Act (FEMA) and RBI regulations.
Prohibited Methods of Payment
Payments for the transfer of property cannot be made using traveller’s cheques, foreign currency notes, or any other methods not specified in the regulations.
Conditions Related to Marriage
To jointly acquire property, the marriage between the NRI/OCI and their non-NRI/OCI spouse must be registered and must have lasted continuously for at least two years prior to the property acquisition.
The non-resident spouse must not be otherwise prohibited from acquiring the property as per applicable laws and regulations.
Compliance with Legal and Regulatory Requirements
All transactions must comply with the guidelines set forth by FEMA, ensuring the proper channels and methods of transaction are utilized.
Ensuring that all documentation is accurate and complete is essential for compliance with the relevant legal and regulatory requirements.
By adhering to these conditions, the spouse of an NRI or OCI can jointly acquire immovable property in India, ensuring compliance with the Foreign Exchange Management (Non-Debt Instrument) Rules, 2019, and other applicable regulations.