Section 5 in The Foreign Exchange Management (Acquisition And Transfer Of Immovable Property In India)Regulations, 2000
5. Acquisition of immovable property for carrying on a permitted activity .-A person resident outside India who has established in India in accordance with the Foreign Exchange Management (Establishment in India of Branch or Office or other Place of Business) Regulations, 2000, a branch, office or other place of business for carrying on in India any activity, excluding a liaison office, may--
(a)acquire any immovable property in India, which is necessary for or incidental to carrying on such activity:Provided that--(i)all applicable laws, rules, regulations or directions for the time being in force are duly complied with; and(ii)the person files with the Reserve Bank a declaration in the Form IPI annexed to these regulation not later than ninety days from the date of such acquisition;(b)transfer by way of mortgage to an authorised dealer as a security for any borrowing, the immovable property acquired in pursuance of clause (a).[5-A. Purchase/sale of immovable property by Foreign Embassies/ Diplomats/Consulate Generals.-A Foreign Embassy/Diplomat/Consulate General may purchase/sell immovable property in India other than agricultural land/plantation property/farm house provided (i) clearance from Government of India, Ministry of External Affairs is obtained for such purchase/sale, and (ii) the consideration for acquisition of immovable property in India is paid out of funds remitted from abroad through banking channel.]
