In Brief
A widow of a foreign national (Mrs. F.L. Raitt) gifted portions of property in Bangalore to the respondent without obtaining prior permission from the Reserve Bank of India, as required by Section 31 of the Foreign Exchange Regulation Act, 1973. The appellant (successor to a purchaser who had obtained RBI permission) challenged the gift deeds as unenforceable. The Supreme Court held that the requirement of 'previous' RBI permission under Section 31 FERA 1973 is mandatory, and transactions in breach render the transfer unenforceable until permission is granted. The Court overruled conflicting High Court decisions and declared the gift deeds invalid, allowing the appellant's suit for possession of the disputed property.
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