Maintaining Assets in India while obtaining second passport

[Marc Rich]

Hi all. Could someone please shed some light into the following:

UAE based with UAE tax residency, Indian Citizenship. Assets in India worth 7 figures (farm land). I know that Indians when they obtain a second passport, they can renounce their Indian Citizenship and receive OCI. Does anyone know and can comment on whether you can hold assets in India with OCI?

Could you in this case, obtain a second passport, renounce Indian Citizenship, and own the farm land in India via a an offshore trust formed in an offshore jursdiction?

 

[troubled soul]

Offshore trust Can not buy farmland, Even NRI can not.

Can an Overseas Citizen of India (OCI) card holder or NRI buy/sell real estate in India?

A. As per the guidelines issued by Reserve Bank of India, an NRI or OCI card holder can invest in any residential or commercial property. The guidelines also state that one can buy any number of residential or commercial properties. However, they are not permitted to invest in farmland, plantation land, and agriculture land. But, they can inherit the agricultural land/plantation property/ farmland.
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Hope this helps.

 

[Marc Rich]

ok so you can inherit the property/farmland, so in this case - would it be possible to sell the farmland to a relative, obtain OCI, and then inherit the farmland back? How would this work?

 

[troubled soul]

Marc Rich said:
ok so you can inherit the property/farmland, so in this case - would it be possible to sell the farmland to a relative, obtain OCI, and then inherit the farmland back? How would this work?
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Inheritance = passing on of property after someone's death

When Your father died and Transfer farmland in your name It is called "Inheritance".
Option You suggest is regular buying and Selling.

As NRI Don't try to play with the law in India. If you face any legal trouble, there will be endless court dates.
Land-related cases are pending for Years.

 

[Marc Rich]

so you see no solution here in obtaining a second passport while still remaining farm land assets in India? Perhaps there is a more complex solution that could work?

 

[troubled soul]

You own now than Why are you selling, No need of selling. You can retain the Farmland If it is an inheritance. I do not get your point of selling your current farmland.
why are you selling it?

If you get another passport, You can still retain the Farmland.

Rule of Thumb is,

"You can not buy/invest in Farmland after becoming NRI/OCI"

 

[Marc Rich]

No no, there is no plans to sell anything. The farm land was given to the individual by his father, it is legally in the sons name. He wants to obtain second passport and renounce Indian Citizenship, while still have assets in India. Needs solution on how to best proceed.

So is the only viable option is to get a second passport while still holding Indian Citizenship (illegal)? but in this case go for an 2nd citizenship option that does not notify authorities or publish investor names at any point.

 

[troubled soul]

Marc Rich said:
No no, there is no plans to sell anything.

Ok so basically, only viable option is to get a second passport while still holding Indian Citizenship (illegal) but in this case go for an 2nd citizenship option that does not notify authorities or publish investor names at any point.
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I do not get it,
What are you trying to achieve?
You want to retain Farmland ownership or You want to retain two Passport (illegally) ?

Thanks

 

[Marc Rich]

azb1 said:
I do not get it,
What are you trying to achieve?
You want to retain Farmland ownership or You want to retain two Passport (illegally) ?

Thanks
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Trying to achieve:

retain farmland ownership while obtaining a second passport and becoming OCI

 

[troubled soul]

Marc Rich said:
Trying to achieve:

retain farmland ownership while obtaining a second passport and becoming OCI
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There is no problem.
You can maintain ownership of your asset in India while getting a second passport and renounce your Indian citizenship.

 

[Marc Rich]

Great, thank you. If anyone else wants to chime in, please feel free to do so

 

[troubled soul]

Marc Rich said:
Great, thank you. If anyone else wants to chime in, please feel free to do so
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As per the Supreme Court decision in Geeta Reinboth vs Mrs. J Clairs Broheir (2006) 63 SCL 411, restriction on the acquisition, holding, etc. of immovable property cannot be stretched to include a prohibition on a right to inheritance.

https://www.indianembassyqatar.gov.in/OCI_card_holders
Can he/she continue to hold such property even after becoming an OCI card holder?

Yes, a person who had bought residential/commercial property/agricultural land/ plantation property/farm house in India when he was an Indian citizen, can continue to hold that property without the approval of the Reserve Bank after becoming an OCI card holder.

 

[andrew28fl]

Marc Rich said:
Hi all. Could someone please shed some light into the following:

UAE based with UAE tax residency, Indian Citizenship. Assets in India worth 7 figures (farm land). I know that Indians when they obtain a second passport, they can renounce their Indian Citizenship and receive OCI. Does anyone know and can comment on whether you can hold assets in India with OCI?

Could you in this case, obtain a second passport, renounce Indian Citizenship, and own the farm land in India via a an offshore trust formed in an offshore jursdiction?
Click to expand...

I can confirm what others have said, if the farmland was bought while the person was still an Indian Citizen, and not an NRI (please look up the legal definition of NRI, it's tricky), then the person can continue to hold farmland even after renouncing Indian citizenship and receiving OCI. He will not be able to buy any more farmland after renouncing Indian citizenship.