Foreign investors in Indian real estate cannot sell their stakes to another foreign investor before three years the FIPB (Foreign Investment Promotion Board) has said. With this, FIPB has overruled a provision in FDI policy that exempts foreign players from the rule in cases where fund transfer is from one non-resident to another. Till now, this three-year lock-in was applicable only on foreign investment in real estate and not on investors.
The FIPB view is contrary to the stand taken by DIPP (Department of Industrial Policy and Promotion), the nodal agency that formulates FDI rules in the country. DIPP's view is that a foreign investor can repatriate funds if it offloads its stake to another foreign investor as the actual investment in a project would remain intact and only its ownership would change.
It was necessary that Foreign Investment Direct or Indirect in Real Estate should have been locked for 10 years. This would have curbed the speculative investment and would have helped the genuine Indian buyer. But do you think our government cares about our own people ? If so, why would be India Bleeding ?
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