Overview - The article lays forth the framework of laws concerning acquisition of real estate in India. The Constitution of India has empowered both Union Government (as known as the Central Government) as well as the State Governments to legislate laws dealing with various facets of immoveable property in India. Thus, the transactions pertaining to real estate acquisition and related matters in India are governed by various legislations enacted by the Central Government and as well as the States Governments.
For Japanese companies wanting to invest in India this article gives an insight of how to maneuver through the labyrinth of real estate laws and also provides a simple comparison with laws in Japan.
As per the FDI policy, a Foreign Entity establishing its presence in India as a liaison office, branch office, a subsidiary or as an LLP can acquire real estate in India for its business purposes. This is essentially distinct from the practice in Japan. However, there are certain steps required to be taken to acquire property in India, typically similar to those in Japan, which include engaging a real estate broker, drafting & negotiating the initial letter of intent, conducting a due diligence with respect to the property, negotiation and executing the agreement to sell or lease, execution of conveyance deed or lease deed and stamping and registration.
This article aims to be a ready reckoner for Japanese companies intending to acquire immoveable property in India. India is a diverse country with varied topographies and equally varied real estate laws that may differ from state to state, accordingly, it is always advisable to seek out the assistance of a real estate attorney.
Foreign entities acquiring Real Estate in India published recently in the Indian Business Law Journal–Indo-Japanese Business Corridor authored by Alok Tewari, Senior Partner and Simrat Grover, Principal Associate, Kochhar & Co.
Links to English and Japanese language versions of the articles are given below for your ready reference.
English Version –https://www.vantageasia.com/foreign-entities-real-estate/
Japanese Version -https://www.vantageasia.com/ja/foreign-entities-real-estate/