FEMA

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 February 2011 "A Indian company (hereinafter referred to as company) being a FDI invested company of 33.33%. Now the company wants to purchase a land somewhere in India for their own substation. Being a FDI promoted company, is there any need to go for FIPB approval towards purchasing such land. What does FEMA regulations and FDI policy says about this "

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
Follow

26 March 2011 There is no requirement for the same.

Sudhag

Sudhag (Expert)
Follow

01 August 2011 Dear Sir,
A company incorporated in India [having the FDI]is a resident as per FEMA. There is no prohibition under FEMA that a company has to take any approval for purchasing land for its own business purposes. Kindly note purchasing land for own purpose is different from having a business of real estate or dealing in land. As per FDI policy only investment in real estate business is prohibited for foreign Investment.
However,
(1) a liaison office cannot purchase land
(2) a branch office of a foreign company is required to intimate to RBI in form IPI not later than ninety days from the date of such acquisition
Hope above clarifies your query. Please be free to write for further clarification on same.
Regards,
CA. Sudha G. Bhushan
Sudhag999@gmail.com