Acquisition of Property in India by Foreign Nationals not resident in India

Section 6 (5) of the Foreign Exchange Management Act, 1999 states that a person who is a
resident outside India may hold or own an immovable property situated in India if such
property was acquired by such person when he was a resident in India or inherited from a
person who was resident in India.
A person resident outside India may hold, own, transfer or invest in Indian currency, security
or any immovable property situated in India if such currency, security or property was
acquired, held or owned by such person when he was resident in India or inherited from a
person who was resident in India.
However, Section 7 of the Master Circular No. 4/2015-16 dated July 1, 2015 on Acquisition and
Transfer of Immovable Property in India by NRIs/PIOs/Foreign Nationals of Non-Indian
Origin specifically states that citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China,
Iran, Nepal, Bhutan, Macau or Hong Kong cannot acquire or transfer immovable property in
India. The bare text of the provision is:
Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan,
Macau or Hong Kong cannot, without prior permission of the Reserve Bank, acquire or
transfer immovable property in India, other than lease, not exceeding five years