Indian-Origin Petitioners Upheld in Property Transfer Rights Ruling

The court held that the petitioners, individuals of Indian origin, have the right to transfer property in India to Indian residents under Regulation 4 of the Foreign Exchange Management Regulations. The respondents' objection to registering the sale deed was deemed unsustainable. The court directed the third respondent to permit the sale deed's execution and registration upon proof of identity and payment of stamp duty.

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Issues involved:
The issues involved in the judgment are the acquisition and transfer of immovable property in India by individuals of Indian origin who are not Indian citizens, as well as the interpretation of relevant regulations governing such transactions.

Acquisition of Property:
The first petitioner, a Malaysian citizen, acquired property in India through a sale deed executed by her Indian citizen husband. The petitioners are in possession and enjoyment of the property, paying taxes accordingly. The petitioners seek relief against the third respondent's refusal to register a sale deed for the property.

Regulations Interpretation:
The petitioners rely on Regulation 2(c) of the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000, asserting their entitlement to acquire and dispose of property in India. The amended definition of 'a person of Indian origin' includes individuals with Indian lineage, such as the first petitioner and her children.

Legal Analysis:
The judgment examines Regulation 4 of the aforementioned regulations, which permits persons of Indian origin residing outside India to transfer immovable property in India to Indian residents. Late Thekkepeediyakkal Moideen Haji, an Indian citizen, acquired the property in question, making the petitioners, his legal heirs, eligible to inherit and transfer the property.

Decision and Direction:
The court concludes that the petitioners, being individuals of Indian origin, are entitled to transfer the property to an Indian citizen residing in India. The respondents' objection to the sale deed registration is deemed unsustainable. However, the registering authority may require proof of the petitioners' identity as citizens of their respective countries. The writ petition is disposed of with a direction for the third respondent to allow the execution and registration of the sale deed upon proof of identity and payment of stamp duty.

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