New Developments NRI Homebuyers Must Take Note Of

Through several policy changes in the recent past, the Indian government has been ensuring non-resident Indians (NRIs) are duly rewarded for their contribution in shaping the country's economy. Several other initiatives are in the works that would impact NRIs and how they do business in India, including property transactions.

Here is what is going to impact you if you are an NRI, and are planning to invest your money in India.

You will be able to externally vote soon

NRIs have been seeking this right for a long time now. One of the petitions lying with the Supreme Court says that 70 per cent of the people in Kerala are NRIs, and deserve the right to vote considering their contribution to the country. It is worth mentioning here that of the 114 countries that have adopted an external voting system giving non-residents a right to take part in national polls, 20 are Asian nations. Soon enough, the NRIs will be able to enjoy this right.

This will be achieved by amending the Representation of People (RP) Act to allow NRIs to vote through postal or e-ballots. In the upcoming Winter Session, for instance, the government will table a Bill to provide NRIs voting rights. Along with the right through e-ballots would also come the power to bring changes that suit the requirements of NRIs.

You do not have to link your bank account with Aadhaar

It is must for Indians citizens to link all their bank accounts with their Aadhaar. However, this rule does not apply to NRIs and PIOs. The Unique Identification Authority of India (UIDAI) has made it clear that NRIs and PIOs are not required to link bank accounts and other services with Aadhaar. In the works, however, is a mechanism to verify the status of such people.

The UIDAI has made it clear that Aadhaar can be sought only from those eligible for it under Aadhaar Act.

"The laws regarding submitting/linking of Aadhaar for availing of the services/benefits applies to the residents as per the Aadhaar Act 2016... Most of the NRIs/PIOs/OCIs may not be eligible for Aadhaar enrolment as per Aadhaar Act...," the UIDAI said on November 15.

Punjab is bringing NRI Property Safeguard Act for you

In the coming three months, there may be a law in place in the state of Punjab to protect you against property-related frauds. According to media reports, the state government is planning to bring the NRI Property Safeguards Act within three months to solve problems of those residing overseas in an “effective, quick and transparent manner”.

The draft of the law, which would provide time-bound solutions to NRIs on property disputes, is ready and on its way to get an approval from Chief Minister Amarinder Singh. An ombudsman for resolving issues — including domestic problems — would also be set up under the law.

"District authorities will be given three months for addressing property- issues of NRIs. If they don't resolve it in the stipulated time, a state-level appellate body will hear the appeal and resolve the matter within three months. If the dispute persists, the matter can be taken to the high court," Principal Secretary in the Punjab NRI Affairs Department S R Ladhar said.

You may have to face the music for misusing the law

It would be the best to stick to the rules while you carry out property transaction in India lest you invite trouble. An NRI originally from Kerala has invited trouble for “circumventing” the law.

In February this year, the Enforcement Directorate (ED) issued a show- cause notice to NRI businessman C C Thampi and his company for alleged violation of the Foreign Exchange Management Act (FEMA). The businessman, who is originally from Kerala, acquired about 927 acres of land in the national capital region worth over Rs 288 crore. This was in violation of the FEMA rules. Recently, the ED issued a fresh show-cause notice to Thampi for acquiring 594 acres of land in Kerala worth over Rs 1,000 crore.

Thampi acquired huge agricultural land in Palwal and Faridabad districts of Haryana in the name of his company Holiday City Centre by circumventing the prescribed law of the land and in contravention of an extant provision of FEMA, says the ED. Being an NRI, Thampi is not entitled to purchase this land, says the ED.

His companies, Holiday City Centre, Holiday Properties and Holiday Bekal Resorts, are being probed as part of the two show-cause notices.

With inputs from Housing News