Benjamin, a foreign investor wants to make investment in India. He is not familiar with the Foreign Direct Investment (FDI) Scheme of India. As a company secretary, advise Benjamin, whether he can invest in constructing

CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · December 2020
Benjamin, a foreign investor wants to make investment in India. He is not familiar with the Foreign Direct Investment (FDI) Scheme of India. As a company secretary, advise Benjamin, whether he can invest in constructing farm houses in Mumbai.

Answer & Explanation:

According to Foreign Direct Investment (FDI) Scheme of India, there are certain prohibited activities/sectors where Benjamin cannot make investment which includes Real Estate Business or Construction of Farm Houses. 'Real estate businesses' shall not include development of townships, construction of residential/commercial premises, roads or bridges and Real Estate Investment Trusts (REITs) registered and regulated under the SEBI (REITs) Regulations, 2014. In view of above provisions, Benjamin is: Not allowed to invest in constructing farm houses in Mumbai.

Topics: Foreign Exchange Management Act (FEMA)

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