Renting your home to foreigners: Follow these rules to avoid legal trouble

Recently, 52 flat owners in a residential society in Gurgaon found themselves facing legal action for not following the proper procedures

Planning to rent your home to a foreign national? But do you know that failing to follow the proper legal procedures could land you in trouble? Recently, 52 flat owners in a residential society in Gurgaon's Sohna Road were booked by police for the same reason.

In early August, during a routine security check ahead of Independence Day, a team from Bhondsi police station discovered that foreign nationals were staying in 52 flats within the Central Park Society without the required legal notifications. “The homeowners had not informed the police and had not filled out the necessary Form C,” said a spokesperson from the Gurugram Police. This formality might seem minor, but neglecting it can lead to severe consequences, including fines and imprisonment.

 

So, what exactly is Form C, and why is it so important? More importantly, what should you do if you're planning to rent out your property to a foreign national? Let’s break it down step by step.

What is Form C, and why is it required?

Form C is an important document mandated by the Foreigners Regional Registration Office (FRRO). It is used to monitor and report the accommodation of foreign nationals to ensure their movements are tracked for security and administrative purposes. According to Indian law, anyone providing accommodation to a foreigner for monetary consideration, even for a few hours, must submit this form.

“Whenever any foreign national stays in their hotels, houses, guest houses, or flats, they should inform the police about it and fill the C form in compliance with Section 7 of the Foreigner Act,” said Sandeep Kumar, a spokesperson for the Gurugram Police.

“There is a provision of punishment up to five years under Section 14 of the Foreigner Act for violators,” he cautioned.

The law is rooted in the Foreigners Act of 1946 and the Registration of Foreigners Rules, 1992, both of which outline the procedures and responsibilities of hosts in maintaining and reporting the stay of foreign nationals.

What should homeowners do before renting to foreign nationals?

If you're considering renting out your flat, house, or any other type of accommodation to a foreigner, here are the steps you need to follow:

1. Register with the FRRO:

Before you can submit Form C, you need to register with the Foreigners Regional Registration Office (FRRO). This registration is a one-time process that establishes you as a legitimate provider of accommodation to foreign nationals.

How to register?

You can register online through the FRRO website or visit your local FRRO office. You’ll need to provide your personal details, property information, and supporting documents.

Documents required: These may include a copy of your property’s sale deed or rent agreement, utility bills in your name, and proof of identity. For hotels, guesthouses, and other commercial accommodations, additional documents such as a license to operate may be required.

2. Submit Form C:  

Once registered, you must submit Form C for each foreign guest within 24 hours of their check-in. This ensures that the Bureau of Immigration is promptly informed of the foreign national’s presence.

Where to submit? Form C can be submitted online through the Bureau of Immigration’s platform at indianfrro.gov.in. The online submission process is relatively straightforward and allows you to manage multiple entries if necessary.

You’ll need to provide details about the guest, including their passport and visa information, as well as your property details.

3. Maintain a guest register:  

In addition to submitting Form C, you are required to keep a hand-written register (Form B) of all guests, both Indian and foreign. This register should be available for inspection by relevant authorities at any time.

Why is it important to submit Form C?

The importance of submitting Form C cannot be overstated. This form is not just a bureaucratic requirement; it’s a legal obligation that plays a vital role in national security. By reporting the presence of foreign nationals, the authorities can track their movements and ensure that they are in the country for legitimate reasons.

"The C-Form mechanism helps the authorities locate and track foreigners in India to enhance security and safety," explained an official from the India Financial Consultancy Corporation. "Failure to comply with reporting requirements could result in fines and imprisonment of up to five years."

Penalties for non-compliance?

Neglecting your legal responsibilities as a host can lead to serious consequences. Under Section 14 of the Foreigner Act, failure to submit Form C or register with the FRRO can result in fines and imprisonment for up to five years.

"Hosts must understand that they are not just renting out a room; they are also taking on legal obligations that, if ignored, could lead to severe repercussions," said Kumar. "The law is clear, and the penalties for non-compliance are designed to ensure that everyone takes these obligations seriously."

Exemptions?

While most foreign nationals are required to be reported, there are some exemptions. Certain individuals on specific short-term visas, minors, and categories like OCI cardholders may not need to be registered. However, it’s important to check local regulations or consult with your FRRO office to ensure compliance.