Fema

This query is : Resolved

CA Divyesh Sodha (Querist)
Follow

14 September 2011 In one of the case the party is developing flats and for that it has
received money in foreign currency from A (NRI) through proper banking
channels. However the sale deed is to be made in the name of B (also
NRI) as per the instruction of A. Can he do so and dose it involve any
violation of FEMA?

rvsekar2000

rvsekar2000 (Expert)
Follow

24 September 2011 This will not fall under FDI.

The sender can give an indemnity and an authorisation letter to the Indian company to register the sale deed in favour of B.

The authorised dealer can also be informed about this change by NRI A.

Regards

R.V.Seckar

Pl do visit my blogs :

https://www.rvseckarcompanylaw.blogspot.com/

https://rvseckarfema.blogspot.com/

https://rvseckarindianlaws.blogspot.com

CA Divyesh Sodha

CA Divyesh Sodha (Querist)
Follow

24 September 2011 Is it a valid way? as in involve Foreign Currency transaction. Money recd. in one name and sale deed in another name. Evenif A gives indemnity or authority dose it any way make default to either of the party to the transaction?

Sudhag

Sudhag (Expert)
Follow

29 September 2011 Under the general permission of RBI an NRI can make investment in the residential property.

Money has to be remitted through the following means :
(1) Normal banking channel
(2) Or held in his Non resident account.

A gift of immovable property from NRI to NRI is also permissible.

In your transactions however there are few issues.
Since the sale deed is to be registered in the name of B it is sale to B. [for which money was not remitted as specified in the regulations].
If it gift from A to B. How can A gift to B a immovable property which he does not own. As this is direct transfer to B.

Regards,
CA. Sudha G. Bhushan
Sudhag999@gmail.com

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now