Reserve Bank of India permits Foreign Citizens of Non-Indian Origin (whether resident in India or not) to acquire, hold, transfer, or dispose of immovable properties in India, provided the following conditions are satisfied

i)  Property to be purchased should be for residential use only.

ii) The purchase consideration must be met from Foreign Exchange remitted from abroad through  normal banking channels.

iii) Income arising from the property purchased or sale proceeds of such property or income arising out of investments made out of such sale proceeds at any future date, shall not be allowed to be repatriated outside India.

It is advisable for Foreign Citizens of Non-Indian Origin to take RBI’s prior permission before letting out of the residential premises acquired by them.

iv) Prior permission from Reserve Bank  of India is to be obtained before purchase of the properties by submitting an application in Form IPI 1  together with the following documents:

a) An authenticated copy of the agreement to purchase or draft purchase deed.

b) A detailed valuation report from a Government approved valuer indicating the Fair Market Value of the property, as on the date nearer to the date of agreement, for its purchase.

c) Certified from a Bank in India confirming receipt of foreign exchange necessary to purchase the property.

d) An undertaking regarding  non-repatriation of the s ale proceeds and income of or from the property.