Union of India Vs Robert Lawrence (Appellate Tribunal Under Safema At New Delhi)
Introduction: In a significant decision clarifying the residency criteria under the Foreign Exchange Management Act (FEMA), 1999, the Appellate Tribunal under SAFEMA, New Delhi, in the order dated 20.03.2025. has ruled that a foreign national who becomes a “person resident in India” under FEMA can legally acquire immovable property in India without prior approval from the Reserve Bank of India (RBI). The case pertained to Mr. Robert Lawrence Robertson, a British citizen, against whom the Enforcement Directorate (ED) had initiated proceedings for alleged violation of FEMA provisions by purchasing residential flats in Goa. The Tribunal’s judgment has reinforced that it is the residential status under FEMA, not citizenship, which determines eligibility for property acquisition in India.
Facts of the Case:
The proceedings originated with allegations that Mr. Robert Lawrence Robertson, a British national, had acquired two residential flats in Goa:
- Flat No. B1-9 purchased for ₹15,34,660 (Sale deed dated 28.03.2003)
- Flat No. B1-12 purchased for ₹5,00,000 (Sale deed dated 19.01.2006)
The ED contended that Mr. Robertson was a “person resident outside India” as defined under Section 2(v) of FEMA and, hence, was not permitted to acquire immovable property without prior approval from the RBI, as mandated under Section 6(3)(i) of FEMA read with Regulation 9 of the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000.
