Sale of assets acquired under FCRA Fund

To my professional knowledge assets\immovable property acquired under
fcra money in India by a charitable company could be sold only with
RBI permission and could be deposited \shown in fcra account.

Kindly give reply.

Isaiah Sundar Singh

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3 Responses to Sale of assets acquired under FCRA Fund

  1. Subhash Mittal says:

    I think you have mixed RBI rules for non-residents and FCRA funds. Your own organisation, a charitable comapny, must be a Indian entity registered in India. If the immovable proerty is owned by this entity than it can sell / transfer the immovable property in any manner that it likes. There are some restrictions on foreigners / foreign entities (say Liaison Office, etc) on this count, but none on an Indian entity. As pointed out by others in the discussion thread, since the asset has been acquired out of FCRA funds, you have to deposit the realised proceeds in FCRA bank account only. Same is the position for other assets too.

  2. B V Soma Sastry says:

    Dear Sundar Singh,

    Please note that there is no need to seek the permission/approval of the RBI for the sale of FC assets. The regular process of asset disposal has to be followed and the proceeds have to be deposited in the FC account. Any income earned from the FC asset is treated as FC.

    Thanks and regards,

    B V Soma Sastry

  3. Sunil Kumar says:

    Proceeds from sale of immovable properties acquired from FC funds shall be considered as FC fund and hence need to be deposited in FC bank account. I am not sure about requirement of RBI permission for sale of FC assets. I understand that RBI permission is not required for sale of FC assets.

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