purchase of residential land for commercial purpose under F

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2010 Dear Friends
Can a company Wholly owned subsidiary can purchase a land( for housing purpose) for commercial purpose. Kindly suggest me with explanation of DIPP and FEMA circulars.

regds
Arvind Sharma

Rasesh

Rasesh (Expert)
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25 April 2010 A land having registration of residential category can be purchased by any company. For making commercial / industrial use, the purpose has to be converted from the records of the land registrar after paying the necessary fees and complying with the procedure prescribed. DIPP and FEMA would come into picture only for a foreign company.

Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2010 Dear Rajesh thanks for your valuable raply. but kindly clarify me, what would happen if all the sum involve in the deals received from foreign investment. and if the company purchase the agriculture land in India through foreign investment.

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Rasesh

Rasesh (Expert)
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26 April 2010 If the money is coming as a loan, then only FEMA provisions will apply. DIPP guidelies for FDI in real estate will apply only if it is a real estate project.

I am not aware of the intricate details.