Buying in Bandra from abroad: a note for NRIs and family offices

For a non-resident buyer, the flat is the easy part. What makes a purchase in Bandra, Khar or Santacruz smooth from Dubai, Singapore or London is settling four things before the first viewing: eligibility, the payment route, the paperwork you can sign from abroad, and how the asset will be held and one day sold. This note sets out the principles; your CA and lawyer turn them into specifics for your situation.

Eligibility: who can buy, and what

Non-resident Indians and Overseas Citizens of India can acquire residential and commercial property in India under the general permission available to them under FEMA. Agricultural land, plantation property and farmhouses are excluded except by inheritance — none of which concerns an apartment in 400050, 400052 or 400054.

Foreign nationals who are neither NRIs nor OCI cardholders face tighter rules, and so do foreign-owned entities. If your family office sits outside India, assume the entity itself will not be the buyer until counsel has confirmed otherwise; ownership more often sits with individual family members or an appropriately structured Indian entity.

Paying for it

The rule is simple: funds must come through normal banking channels — an inward remittance from abroad, or money held in your NRE, FCNR or NRO accounts in India. Housing finance from Indian lenders is available to non-residents, repaid through the same channels.

The detail that matters is the trail. How the purchase was funded determines what you can later take back out of India, so keep every remittance advice, account statement and the lender's sanction together from day one.

Signing from abroad

You do not need to be in Mumbai for every step. Overseas buyers commonly complete through a registered power of attorney held by a family member or trusted representative in India.

• Draft it narrowly — for this property and this transaction, not a general authority over your affairs.
• Execute it properly abroad — attested at an Indian mission or apostilled, as your lawyer advises.
• Stamp it in Maharashtra in time — a power of attorney executed outside India must be stamped within the period allowed after it arrives. Late stamping is an avoidable delay.

The representative will need to appear at the sub-registrar's office for registration, so choose someone available on the dates the seller is.

Diligence from a distance

The diligence is the same as for a resident buyer; it simply needs a representative on the ground.

• Title and society: share certificate, the society's no-objection and dues position, and — for older buildings — the redevelopment stage. A society "in talks" and one with a signed development agreement are different assets.
• New construction: MahaRERA registration of the project, the developer's record on the last two buildings they delivered, and occupation certificates for past projects.
• The flat at the right hour. Video viewings work, but schedule them deliberately. On Carter Road and Bandstand, the promenade transforms the street between a weekday morning and a Sunday evening; see both. On a sea-facing flat, ask what can rise between it and the water.

Holding it: individual, joint, or structured

For families and family offices, the holding decision deserves as much care as the flat. Individual, joint, HUF, company or LLP ownership carry different consequences for tax, for stamp duty on any later transfer within the family, and for succession. Decide with your CA and lawyer before the agreement is drafted — restructuring after registration is expensive.

When you sell

Two points to plan for at purchase:

• Tax is deducted at source. When a non-resident sells, the buyer must deduct tax at source on the gain — a larger and more involved deduction than for a resident seller. A non-resident seller can apply for a certificate for a lower deduction where the actual tax due is lower; it takes time, so start early.
• Repatriation has rules. Sale proceeds can generally be repatriated within the rules — the treatment depends on how the property was originally paid for, and there are annual limits on remittances from NRO balances. Your CA certifies the tax position to the bank before the funds move.

Rules in this area change. Treat this note as a checklist for the conversation with your advisers, not as advice on your circumstances.

Leasing it while you are away

Many overseas owners lease the apartment until they move in. Company leases for boards and senior relocations offer a longer tenure and a corporate counter-party, and our Private Office arranges them for owners who are not in the country.

How we work with overseas buyers

We shortlist against your brief, run viewings on video at the hours that tell the truth about a street, assemble the diligence pack, and coordinate with your CA, lawyer and representative in India, so that your visit — if you make one — is for the final decision rather than the search. The best homes on streets like Nargis Dutt Road and the sea-facing rows are few, and many change hands privately; telling us your brief early is what brings them to you.