Section 7(b) in The Foreign Exchange Management (Borrowing And Lending In Rupees) Regulations, 2000
(b)the loan shall not be utilised, either singly or in association with other person, for any of the activities in which investment by persons resident outside India is prohibited, namely:-(i)the business of chit fund, or(ii)Nidhi Company, or(iii)agricultural or plantation activities or in real estate business, or construction of farm houses, or(iv)trading in Transferable Development Rights (TDRs).
