Real Estate

Real Estate Transactions

Govt brings clarity in policy for FDI in real estate biz

MyBigPlunge  

To bring more clarity in its FDI policy for the realty sector, the government has “amended and aligned” the existing definitions of the real estate business. It is now clarified that FDI is not permitted in an entity which is engaged or proposes to engage in real estate business, construction of farm houses and trading in transferable development rights. Earning of rent/income on lease of a property, not amounting to transfer, will not amount to real estate business. The Department for Promotion of Industry and Internal Trade (DPIIT) has also made changes in the norms pertaining to acquisition of shares under scheme of merger/demerger/amalgamation. The merged or new entity may issue capital instruments to the existing shareholders of the transferor company resident outside India.