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Who is a Non Resident Indian (NRI)?

NRI means a person who is a citizen of India and has not been residing in India for more than 182 days during preceding financial year, or has gone out of India for the purpose of employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration.

Who is a PIO?

A person of Indian origin means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who has:

  • Held an Indian Passport at any time, or
  • Who or either of whose father or mother or whose grandfather or grandmother was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955


Whether NRI/PIO can purchase immovable property in India?

Yes, NRIs/PIOs can acquire immoveable property in India other than agricultural land/farm house/plantation property i.e. residential and commercial property.

How can payments be made?

Payments can be made in Indian Rupees from funds held in non-resident accounts maintained by the NRI/PIO by any of these methods:

  • Cheque
  • Draft
  • Pay Order
  • Banker's Cheque
  • Wire Transfer


Can NRIs/PIOs acquire or dispose residential property by way of gift?

Yes, the Reserve Bank has granted general permission to NRIs/PIOs to acquire or dispose off commercial or residential properties by way of gift from or to a person resident in India or NRI or PIO. However, agricultural land / plantation property / farm house in India cannot be acquired by way of gift.

Further, NRI / PIO can gift an agricultural land / a plantation property / a farm house in India only to a person resident in India who is a citizen of India

Can NRIs/PIOs obtain loans for acquisition of a house/flat for residential purpose from financial institutions providing housing finance?

The Reserve Bank has granted general permission to certain financial institutions and authorized dealers for providing housing finance to NRIs/PIOs for acquisition of a house/flat subject to certain conditions. The criteria regarding quantum of loan, margin money and period of repayment will be at par with those applicable to resident Indians.

What details do NRIs/PIOs have to furnish and why?

Documents with the following details need to be furnished:

  • Nationality
  • Whether NRI or PIO (Person of Indian Origin)
  • Residential status
  • Passport details
  • Complete postal & permanent address (local or overseas, as applicable)
  • Name, address & account no. of customer's bank

These details need to be produced because this is a directive by the Government of India to all builders as a mandatory requirement. Failure to furnish the details called for is an offence punishable under the Foreign Exchange Management Act, 2000.


Does House of Hiranandani help customers with home loans?

Yes, definitely. Our projects are pre-approved by leading HFIs/Banks. We can help you acquire necessary approvals for your home loan from these HFIs and co-ordinate with them (as developers) to provide all necessary documents.

What is the difference between GPA and POA (specific)?

General Power of Attorney (GPA) is an authorization given by the customer to a person if he is, owing to his professional commitments, unable to personally attend to the purchase, negotiations, registration and completion of other formalities pertaining to the apartment that he has bought. He will appoint and constitute one person known to him as agent and attorney in his name. And on his behalf, this one person will do any of the following acts deeds and things; this is given in general to do all the activities on his behalf. Power of attorney given to a person only for a specific purpose, for example, possession or registration purposes is called Specific Power of Attorney.

What is the difference between Agreement to Sell and Sale Deed?

Agreement to sell is a legal document which is executed between the builder and the customer, after the customer has paid 20% of the agreement value of the apartment. This document will have the terms and conditions of the seller and the buyer after the purchase of the property. This is a basic document on which bank or any financial institution will lend money to the customer. But this is not considered as the final document when it comes to the title of the property. Sale deed is the final and very important document which authenticates that the title of the property is conveyed to the buyer.

What is e-stamping/Franking/Notarising?

Any legal document which is not executed on a stamp paper has to be registered with the Government by paying the necessary judicial charges. This is called e-stamping/franking. Though printed on the stamp paper, some documents need to be authenticated by a legal person or an advocate who is called a notary and the process is called notarizing. Documents such Power of Attorney, Affidavit, etc. need to be notarized.

How is the Stamp Duty payable on purchase / sale of any Immovable Property determined?

Stamp Duty is payable on ‘Government Market Value’ of property or the consideration agreed to be paid for purchase of the same, whichever is higher. In areas within the limits of the Municipal Corporation, the rate of Stamp Duty payable is 6% whereas for areas outside the Corporation Limits, the rate is 5%.

When does the unit agreed to be purchased becomes his / her property?

A duly registered Agreement for Sale coupled with possession effectively completes the de-facto title of such a purchaser to the unit agreed to be purchased by him / her. However, in case of a co-operative housing society being formed by all the purchasers in the project, the land and all the buildings thereon are conveyed to the co-operative housing society. The purchaser of every unit in the project will be admitted as a member of the society and share certificate of five shares will be allotted to each purchaser. In the event a Condominium of Apartment Owners of all the units in a project is to be formed, a Deed of Apartment will be executed in favour of the purchasers of each unit, thereby conveying the unit together with a pro-rata undivided share in the land covered by the project and in the common areas and facilities thereof.

Which law governs the sale of units by a promoter to the purchaser thereof?

All transactions are governed by the provisions of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963. Neither the promoter nor the purchaser can contract out of the said Act.

What is Capital Gain?

Capital Gain will accrue from the date of Sale Deed or possession or whichever is earlier and if the property is sold within 3 years of the above date, the same will be treated as Short Term Capital Gain if this period is more than 3 years from the above, the same will be treated as Long Term Capital Gain.