ECB Clarification - Indian Real Estate Forum

NSK8700 · 01-11-11

Per Current ECB Guidelines, How RBI view's its definition of "Real Estate" hence restricting its end usage. Is usage towards small projects (upto Eur.1 Million) and selling the assets to NRI's or OCB to the "extant of borrowing" permitted ? How to overcome this restriction to enable FX borrowing from "approved entities" for small borrowing as alternative methods. How is collateralization or Guarantees provisioned for such cross-border/ECB borrowings, accounted for pre-agreed repayments on a per project basis, Thanks ! (UNDERSTAND THAT THIS IS OUTSIDE OF FDI REGULATIONS).

jiteshp · 12-12-11

I understand that for NRI there is no restrictions as long as your tax obligations on account of any income or capitals gains are appropriately treated / Deducted.
Real estate definition for FDI includes development of colony, commercial, hospital, hotel etc. For NRI it can be any real estate unless is under a special provision.

The later part is really interesting. Even I would be happily looking at the Collateralize provision for mid to big size commercial loan of Bonds.

01-11-11	#1
NSK8700 New Member Join Date: Aug 2009 Posts: 5 Thanks: 0 Thanked 0 Times in 0 Posts	ECB Clarification Per Current ECB Guidelines, How RBI view's its definition of "Real Estate" hence restricting its end usage. Is usage towards small projects (upto Eur.1 Million) and selling the assets to NRI's or OCB to the "extant of borrowing" permitted ? How to overcome this restriction to enable FX borrowing from "approved entities" for small borrowing as alternative methods. How is collateralization or Guarantees provisioned for such cross-border/ECB borrowings, accounted for pre-agreed repayments on a per project basis, Thanks ! (UNDERSTAND THAT THIS IS OUTSIDE OF FDI REGULATIONS).

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12-12-11	#2
jiteshp New Member Join Date: Dec 2011 Posts: 1 Thanks: 0 Thanked 0 Times in 0 Posts	I understand that for NRI there is no restrictions as long as your tax obligations on account of any income or capitals gains are appropriately treated / Deducted. Real estate definition for FDI includes development of colony, commercial, hospital, hotel etc. For NRI it can be any real estate unless is under a special provision. The later part is really interesting. Even I would be happily looking at the Collateralize provision for mid to big size commercial loan of Bonds.