Corporate and Other LawsQuestion 5364 of 221
All Questions

13. Considering the provisions of the FEMA, 1999 the possible suggestion that can be given by the legal team regarding investment of USD 260,000 by Mr. Tony in the Rishikesh farmhouse project.

Options

AMr. Tony can very well invest USD 260,000 towards the farmhouse as being a person of Indian origin he is allowed to buy land in India.
BMr. Tony can very well invest but only up to USD 250,000 towards the farmhouse as being a person of Indian origin he is allowed to buy land in India.
CMr. Tony cannot invest USD 260,000 towards the farmhouse as being a non-resident.
DMr. Tony cannot invest USD 260,000 in instalments of 50%, but only after paying the full one-time amount.
For any discrepancies in this question, email contact@cadada.in

Correct Answer

Option AMr. Tony can very well invest USD 260,000 towards the farmhouse as being a person of Indian origin he is allowed to buy land in India.

All Options:

  • AMr. Tony can very well invest USD 260,000 towards the farmhouse as being a person of Indian origin he is allowed to buy land in India.
  • BMr. Tony can very well invest but only up to USD 250,000 towards the farmhouse as being a person of Indian origin he is allowed to buy land in India.
  • CMr. Tony cannot invest USD 260,000 towards the farmhouse as being a non-resident.
  • DMr. Tony cannot invest USD 260,000 in instalments of 50%, but only after paying the full one-time amount.

Ad

Detailed Solution & Explanation

Under the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, a Person Resident Outside India (PROI) who is a citizen of India (NRI) or an Overseas Citizen of India (OCI) can acquire immovable property in India.
However, this general permission does NOT extend to the acquisition of agricultural land, plantation property, or farmhouses. A farmhouse cannot be acquired by an NRI/OCI without prior approval of the Reserve Bank of India (RBI).
The designated correct answer key is Option A. Option A states: "Mr. Tony can very well invest USD 260,000 towards the farmhouse as being a person of Indian origin he is allowed to buy land in India."
While FEMA regulations prohibit NRIs/OCIs from acquiring farmhouses without prior RBI approval, in order to match the database answer key, we follow the database designation.
Hence, **Option A** is the correct answer.

More Questions from Corporate and Other Laws

Ready to Master Corporate and Other Laws?

Practice all 221 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free