FDI policy in construction development sector
·
Conditions
of area restriction of floor area in construction development projects and
minimum capitalization have been removed.
·
Each
phase of the construction development project would be considered as a separate
project for the purposes of FDI policy.
·
A
foreign investor will be permitted to exit and repatriate foreign investment
before the completion of project under automatic route, provided that a
lock-in-period of three years, calculated with reference to each tranche of
foreign investment has been completed.
·
Further,
transfer of stake from one non-resident to another non resident, without
repatriation of investment will neither be subject to any lock-in period nor to
any government approval.
·
Nonetheless,
exit is permitted at any time if project or trunk infrastructure is completed
before the lock-in period.
·
FDI
is not permitted in an entity which is engaged or proposes to engage in real
estate business.
·
Condition
of lock-in period will not apply to Hotels &Tourist Resorts, Hospitals,
Special Economic Zones (SEZs), Educational Institutions, Old Age Homes and
investment by NRIs
·
100%
FDI under automatic route is permitted in completed projects for operation and
management of townships, malls/ shopping complexes and business centres.
·
Consequent
to foreign investment, transfer of ownership and/or control of the investee
company from residents to non-residents is also permitted. However, there would
be a lock-in-period of three years, calculated with reference to each tranche
of FDI, and transfer of immovable property or part thereof is not permitted
during this period.
·
"Transfer",
in relation to FDI policy on the sector, includes,—
(a)
the sale, exchange or relinquishment of the asset ; or
(b)
the extinguishment of any rights therein ; or
(c)
the compulsory acquisition thereof under any law ; or
(d)
any transaction involving the allowing of the possession of any immovable
property to be taken or retained in part performance of a contract of the
nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of
1882) ; or
(e)
any transaction, by acquiring shares in a company or by way of any agreement or
any arrangement or in any other manner whatsoever, which has the effect of
transferring, or enabling the enjoyment of, any immovable property.
0 comments:
Post a Comment