Indian Chapter – Real Estate 2022 | Law and Practice Guide

The legal system in India comprises of civil law, customary and personal law, and common law. Real estate transactions are subject to central and state legislation, personal/religious laws and judicial precedents. There is also subordinate legislation, such as rules, regulations and by-laws made by local authorities such as municipal corporations, gram panchayats and other local administrative bodies. Laws relating to real estate in India can be categorised as follows:

• laws applicable to the acquisition, transfer and registration of immovable properties, such as the Transfer of Property Act 1882 (TOPA), the Registration Act 1908 (Registration Act), the Real Estate (Regulation and Development) Act 2016 (RERA), Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013, Benami Transactions (Prohibition) Act 1988, land revenue codes, stamp duty legislation enacted by various states as well as various other local/state/municipal laws, policies and customs;
• exchange control regulations for foreign investors, such as the Foreign Exchange Management Act 1999 and the rules and regulations framed thereunder (FEMA), including in particular the Foreign Exchange Management (Non-Debt Instruments) Rules 2019 (Non-Debt Rules) and the Foreign Exchange Management (Debt Instruments) Regulations 2019 (Debt Regulations);
• corporate laws such as the Companies Act 2013 (Companies Act), where any party to the transaction is a company, and the Limited Liability Partnership Act 2008 (LLP Act), where a limited liability partnership firm (LLP) is involved; and
• personal/religious laws that determine title acquired through inheritance or succession.

Please click here to read the full publication by Vivek K Chandy, Malini Raju, Archana Tewary, and Farid Karachiwala published in Chambers & Partners.