The Department for Promotion of Industry and Internal Trade (“DPIIT”) on March 14, 2022, released a Press Note issuing amendment to the definition of the real estate business under the Para 5.1(f) and Note (i) to Para 5.2.10.2 of the Consolidated FDI Policy Circular of 2020 (“FDI Policy”).

The amended definition is read as under:
‘Real Estate business’ means dealing in land and immovable property with a view to earning profit there from and does not include development of townships, construction of residential/commercial premises, roads or bridges, educational institutions, recreational facilities, city and regional level infrastructure, townships and Real Estate Investment Trusts (REITs) registered and regulated under the SEBI (REITs) Regulations 2014. Further, earning of rent/income on lease of the property, not amounting to transfer, will not amount to real estate business