EB5 Investment

United States District Court, Northern District of California, Case No. 20-cv-09263-JSC, vide its order dated 22nd June, 2021, has set an unprecedented mark in the history of American immigration under the EB-5 program. The Court ruled in favor of the plaintiff by announcing its final verdict which thus resulted in the investment amount being restored to US$ 500,000 (as of the date of Court’s order).

Indian sources of funds have always been complex and is not something that can be finished at a notice of 1 week. However, if one works at full throttle and client has the mental preparedness, it is definitely achievable. A day or two also needs to be provisioned for completing FEMA formalities with the banks, in terms of the A2 form and other procedural requirements under the Liberalized Remittance Scheme (LRS). One can’t afford to rush for an EB5 filing while jeopardizing Indian laws & regulations, tax or otherwise.

For those who have the appetite and willingness to apply, but do not have funds in liquid state, may discretionally opt for part-funding wherein an I-526 ought to be filed on or before 30th June with a partial investment. Subsequently, an inter-filing can be opted for bridging the gap. Do note that the intended sources of funds at the time of filing I-526 must remain the same at the point of interfiling. E.g. – X filed his I-526, along with his family members as co-applicants, on June 23, 2021. In the petition, X has mentioned that he intends to sell his immoveable property being an apartment located in Bandra, Mumbai. Subsequent to the filing, X doesn’t sell that property; however, he sells his second home in Bengaluru. This is highly likely to create a problem; hence, X must be certain on the anticipated sources of funds should he opt for partial funding, and an inter-filing thereafter.

Fully copy of the Court’s order is available for your download here.