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CS Executive · Setting Up of Business, Industrial and Labour Laws · Setting up of Business outside India and Issues Relating thereto

Meenakshi, a resident Indian, inherited a house in Dubai from her uncle, who was a person resident outside India when he owned it. She wishes to hold and later transfer it. Under the Foreign Exchange Management Act, 1999, what is the position?

She may hold, own, transfer or invest in the Dubai house. The Act permits a person resident in India to do so with immovable property situated outside India that was inherited from a person who was resident outside India. No sale deadline or approval is required.

  1. AShe may hold, own, transfer or invest in it, because it was inherited from a person resident outside IndiaCorrect
  2. BShe must sell it within 30 days of inheritance
  3. CShe may hold it only after the Competent Authority confirms it
  4. DShe may hold it but cannot transfer it without seizure proceedings

Explanation

Section 6(4) allows a resident in India to hold, own, transfer or invest in foreign security or immovable property abroad if it was acquired or held while resident outside India or inherited from a person resident outside India. Her uncle was a non-resident, so the inheritance qualifies. The other options invent conditions not found in the text.

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