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.
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.
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.