Cabinet clears HDFC's $720 million realty fund for foreign investors
07 Sep 2006
Mumbai: The Union cabinet has approved Housing Development Finance Corporation proposal for a $720 million realty fund for foreign investors. HDFC has set up a unit in Mauritius - India Offshore Real Estate Investments - to route foreign investments into the country's realty sector. By investing funds in an entity based in Mauritius, foreign investors can save on tax.
Investors can invest in India's booming property sector such as housing and shopping malls but they will not be able to repatriate the money for three years.
HDFC, India's largest home financier, saw its shares rise 3.07 per cent to Rs 1,352.75 over the weak in Mumbai.
Under the treaty to avoid double taxation, investment income from India comes tax-free in Mauritius.