GOA - Buyer Beware!
Feb 27th 2010, 3:00 am
#2971
Joined: Sep 2009
Posts: 4,680
Re: GOA - Buyer Beware!
One of our Members who is working very hard behind the scenes, sent me this pm. " I got a 2 minute meeting with home sec Alan Johnson who promised to speak to Milliband ! Can you post that an " expats" member had a private meeting with the home secretary who is going to refer our issue to David Milliband
On behalf of us all thanks for that and all your hard work, there are so many BE members beavering around in the background.:thumbsup:
On behalf of us all thanks for that and all your hard work, there are so many BE members beavering around in the background.:thumbsup:
To whoever the expats member is that has done this, good on you and many thanks.
Dread - great stuff
x
Feb 27th 2010, 4:23 am
#2972
Joined: May 2007
Location: Noni the Indian Goan Beach Mulberry
Posts: 8,227
Feb 27th 2010, 5:50 am
#2973
Account Closed
Joined: May 2006
Posts: 1,146
Re: GOA - Buyer Beware!
Your a great Mod that people trust and you only got this reputation from keeping confidentially respect girl!!!
Thank who ever it was anyway
Freezing here in the UK still
GC
appreciating our Mod 
Mar 1st 2010, 2:38 pm
#2974
Joined: May 2007
Location: Noni the Indian Goan Beach Mulberry
Posts: 8,227
Re: GOA - Buyer Beware!
--------------------------------------------------------------------------------
Quote:
Originally Posted by Cralis1
Hi all, we are new to this forum but would appreciate some help/advice.
We purchased an off plan apartment in Calangute in March 2006 from an agent, with, every intention of making Goa our future home. We felt we had approached the sale in a sensible manner, how wrong were we!!
We visited Goa in April 2007 under the instruction of our English Solicitor to open a limited company we duly completed this and went home looking foward to the completion of our apartment.
Various payments were made these being cheques paid to the agent or transfers through our Solicitor, with latter payments being made via our Bank of India Account which was opened in England.
Unfortunately due to personal matters in 2008 we had to make a decision not to move to Goa and we were left with no alternative but to ask the agent to place the apartment up for sale, the apartment has been on the market since late 2008, on Friday we received an offer from a resident Indian.
This is where our problems have started, we have accepted the offer, and queried how to repatriate funds, we have now hit a brick wall with no information coming from our agent just avoinding my questions. We hold an account with the Bank of India in Goa, we have been to see them today (english branch) and they have advised it will not be a problem (I'm not convinced), we have tried to contact our english solicitor but he has been quite hostile towards us stating that he will not give us any advice, and that all transfers from India are barred.
Please can somebody help us, I have read with interest the different discussions, to a point now, that I don't even know if we legally own our apartment, we have put all of our savings into this property (like most people) and I now feel that we are going to come away with nothing.
I have been advised by the bank to employ a reputable accountant, unfortunately I have no knowledge of any accountants in Goa!
Any help that anyone could offer would be greatly appreciated.
Hi Welcome,
You can repatriate your fund providing you have bought them through proper banking channels and you can get your bank in India to supply you with the FIRC foreign Inward Remittance Certificates.You can only bring out of Indian what you bought in any profit that you make on your property you will have to pay CGT and leave the rest in Indian and spend at your will.
Your question as to if you own the property, probably not unless you have the deeds, which in your case is probably better for you if you are selling the place.What is your builder like?,if he is honest and I believe there are a few he should be able to help you and probably won't want to much to get your sales agreement changed to a Sales deed for the buyers.
Also make sure if you are getting out of India that you close the company properly,I know of people who have ended up in hot water because they sold up and left India and didn't close the company.
This is where you will need a good accountant and a company secretary to do this.I have one but they are in south Goa but I'm sure when others on BE pick up your thread there will be lots of contacts forthcoming who are in the north.
I suggest you get onto your bank in Goa and ask for your FIRC if you don't have them because this is the only way you are going to be able to get your money out of India legally.These are a must.
Please keep posting there will be others who offer help along the way.Also after you have made 3 post please vote on the save Goa Poll and send Lewis a PM with your story,there are people on here who are fighting this injustice and your vote and your story counts there are so many of us in the same boat and most of us have used saving and pension funds to pay for these property
GC Hope this helps
Re: Help Needed!!
--------------------------------------------------------------------------------
Quote:
Originally Posted by Goacrazy56
Hi Welcome,
You can repatriate your fund providing you have bought them through proper banking channels and you can get your bank in India to supply you with the FIRC foreign Inward Remittance Certificates.You can only bring out of Indian what you bought in any profit that you make on your property you will have to pay CGT and leave the rest in Indian and spend at your will.
Your question as to if you own the property, probably not unless you have the deeds, which in your case is probably better for you if you are selling the place.What is your builder like?,if he is honest and I believe there are a few he should be able to help you and probably won't want to much to get your sales agreement changed to a Sales deed for the buyers.
Also make sure if you are getting out of India that you close the company properly,I know of people who have ended up in hot water because they sold up and left India and didn't close the company.
This is where you will need a good accountant and a company secretary to do this.I have one but they are in south Goa but I'm sure when others on BE pick up your thread there will be lots of contacts forthcoming who are in the north.
I suggest you get onto your bank in Goa and ask for your FIRC if you don't have them because this is the only way you are going to be able to get your money out of India legally.These are a must.
Please keep posting there will be others who offer help along the way.Also after you have made 3 post please vote on the save Goa Poll and send Lewis a PM with your story,there are people on here who are fighting this injustice and your vote and your story counts there are so many of us in the same boat and most of us have used saving and pension funds to pay for these property
GC Hope this helps
Welcome Cralis
Sorry to hear of your problem - we are all in the same boat one way or another.
Who are your builders? You probably have an Agreement of Sale as no properties have been registered in the last few years if you are an FN.
Some builders are charging anything from £200 to £9,000!!! + to change
the names of the Sale Agreement.
GC has given you good advise keep posting - will transfer this to Buyer Beware, and send please send your story to Lewis on Save Goa thread, it is important for people to send their stories, it is in complete confidence.
There is a lot going on in the background which cannot be put on the site, it is a pity that all the "peeper" do not have the guts to join, and at the end of the day it will help them.__________________
Quote:
Originally Posted by Cralis1
Hi all, we are new to this forum but would appreciate some help/advice.
We purchased an off plan apartment in Calangute in March 2006 from an agent, with, every intention of making Goa our future home. We felt we had approached the sale in a sensible manner, how wrong were we!!
We visited Goa in April 2007 under the instruction of our English Solicitor to open a limited company we duly completed this and went home looking foward to the completion of our apartment.
Various payments were made these being cheques paid to the agent or transfers through our Solicitor, with latter payments being made via our Bank of India Account which was opened in England.
Unfortunately due to personal matters in 2008 we had to make a decision not to move to Goa and we were left with no alternative but to ask the agent to place the apartment up for sale, the apartment has been on the market since late 2008, on Friday we received an offer from a resident Indian.
This is where our problems have started, we have accepted the offer, and queried how to repatriate funds, we have now hit a brick wall with no information coming from our agent just avoinding my questions. We hold an account with the Bank of India in Goa, we have been to see them today (english branch) and they have advised it will not be a problem (I'm not convinced), we have tried to contact our english solicitor but he has been quite hostile towards us stating that he will not give us any advice, and that all transfers from India are barred.
Please can somebody help us, I have read with interest the different discussions, to a point now, that I don't even know if we legally own our apartment, we have put all of our savings into this property (like most people) and I now feel that we are going to come away with nothing.
I have been advised by the bank to employ a reputable accountant, unfortunately I have no knowledge of any accountants in Goa!
Any help that anyone could offer would be greatly appreciated.
Hi Welcome,
You can repatriate your fund providing you have bought them through proper banking channels and you can get your bank in India to supply you with the FIRC foreign Inward Remittance Certificates.You can only bring out of Indian what you bought in any profit that you make on your property you will have to pay CGT and leave the rest in Indian and spend at your will.
Your question as to if you own the property, probably not unless you have the deeds, which in your case is probably better for you if you are selling the place.What is your builder like?,if he is honest and I believe there are a few he should be able to help you and probably won't want to much to get your sales agreement changed to a Sales deed for the buyers.
Also make sure if you are getting out of India that you close the company properly,I know of people who have ended up in hot water because they sold up and left India and didn't close the company.
This is where you will need a good accountant and a company secretary to do this.I have one but they are in south Goa but I'm sure when others on BE pick up your thread there will be lots of contacts forthcoming who are in the north.
I suggest you get onto your bank in Goa and ask for your FIRC if you don't have them because this is the only way you are going to be able to get your money out of India legally.These are a must.
Please keep posting there will be others who offer help along the way.Also after you have made 3 post please vote on the save Goa Poll and send Lewis a PM with your story,there are people on here who are fighting this injustice and your vote and your story counts there are so many of us in the same boat and most of us have used saving and pension funds to pay for these property
GC Hope this helps
Re: Help Needed!!
--------------------------------------------------------------------------------
Quote:
Originally Posted by Goacrazy56
Hi Welcome,
You can repatriate your fund providing you have bought them through proper banking channels and you can get your bank in India to supply you with the FIRC foreign Inward Remittance Certificates.You can only bring out of Indian what you bought in any profit that you make on your property you will have to pay CGT and leave the rest in Indian and spend at your will.
Your question as to if you own the property, probably not unless you have the deeds, which in your case is probably better for you if you are selling the place.What is your builder like?,if he is honest and I believe there are a few he should be able to help you and probably won't want to much to get your sales agreement changed to a Sales deed for the buyers.
Also make sure if you are getting out of India that you close the company properly,I know of people who have ended up in hot water because they sold up and left India and didn't close the company.
This is where you will need a good accountant and a company secretary to do this.I have one but they are in south Goa but I'm sure when others on BE pick up your thread there will be lots of contacts forthcoming who are in the north.
I suggest you get onto your bank in Goa and ask for your FIRC if you don't have them because this is the only way you are going to be able to get your money out of India legally.These are a must.
Please keep posting there will be others who offer help along the way.Also after you have made 3 post please vote on the save Goa Poll and send Lewis a PM with your story,there are people on here who are fighting this injustice and your vote and your story counts there are so many of us in the same boat and most of us have used saving and pension funds to pay for these property
GC Hope this helps
Welcome Cralis
Sorry to hear of your problem - we are all in the same boat one way or another.
Who are your builders? You probably have an Agreement of Sale as no properties have been registered in the last few years if you are an FN.
Some builders are charging anything from £200 to £9,000!!! + to change
the names of the Sale Agreement.
GC has given you good advise keep posting - will transfer this to Buyer Beware, and send please send your story to Lewis on Save Goa thread, it is important for people to send their stories, it is in complete confidence.
There is a lot going on in the background which cannot be put on the site, it is a pity that all the "peeper" do not have the guts to join, and at the end of the day it will help them.__________________
Mar 1st 2010, 7:44 pm
#2975
Just Joined
Joined: Feb 2010
Posts: 5
Re: GOA - Buyer Beware!
Hello,
Just allow me to put here some of my experiences regarding the investment we did.
I'm a foreign national (not Indian) and major shareholder with my wife in an indian pvt ltd company in the tourist business which is running a resort. The land and buildings are the sole registered property of the indian company itself and not in anyway on our personal names.
Luckily we are not in the very odd and painfull situations that many of you are. The FEMA 1999 act is indeed quiet complicated and sometimes ambigius.
After reading and studying the act many times the conclusion is quiet clear e that only "persons resident for more than 182 days in India in the last financial year" (and this includes per definition an indian company) are allowed to buy property in India and then have to intimate the RBI of the sale through the proper channels.
So we are shareholders in the company and NOT owners of the property ! Under the FDI automatic route when transferring the investment funds to the comapany account through an AD-cat 1 (authorized dealer category 1) you will get an FIRC for those funds. This FIRC has to be intimated through the authorized dealer (bank) to the RBI within 30 days of receipt of the funds after which the RBI will send you the UIN (Unique Identification Numbers) .And then after the comapny has alloted the shares this again has to be intimated to the RBI within another 30 days with the FC-GPR documents. If this all has been correctly done you are officially and legally shareholder of the company.
Now those shares can be transferred and sold to residents and non-residents under certain conditions stipulated in the FEMA 1999 act, but the funds out of this sale which includes the original investment AND profits can be repatriated after deduction of the profit taxes....
Just allow me to put here some of my experiences regarding the investment we did.
I'm a foreign national (not Indian) and major shareholder with my wife in an indian pvt ltd company in the tourist business which is running a resort. The land and buildings are the sole registered property of the indian company itself and not in anyway on our personal names.
Luckily we are not in the very odd and painfull situations that many of you are. The FEMA 1999 act is indeed quiet complicated and sometimes ambigius.
After reading and studying the act many times the conclusion is quiet clear e that only "persons resident for more than 182 days in India in the last financial year" (and this includes per definition an indian company) are allowed to buy property in India and then have to intimate the RBI of the sale through the proper channels.
So we are shareholders in the company and NOT owners of the property ! Under the FDI automatic route when transferring the investment funds to the comapany account through an AD-cat 1 (authorized dealer category 1) you will get an FIRC for those funds. This FIRC has to be intimated through the authorized dealer (bank) to the RBI within 30 days of receipt of the funds after which the RBI will send you the UIN (Unique Identification Numbers) .And then after the comapny has alloted the shares this again has to be intimated to the RBI within another 30 days with the FC-GPR documents. If this all has been correctly done you are officially and legally shareholder of the company.
Now those shares can be transferred and sold to residents and non-residents under certain conditions stipulated in the FEMA 1999 act, but the funds out of this sale which includes the original investment AND profits can be repatriated after deduction of the profit taxes....
Mar 1st 2010, 10:02 pm
#2976
Joined: Sep 2009
Posts: 4,680
Re: GOA - Buyer Beware!
--------------------------------------------------------------------------------
Quote:
Originally Posted by Cralis1
Hi all, we are new to this forum but would appreciate some help/advice.
We purchased an off plan apartment in Calangute in March 2006 from an agent, with, every intention of making Goa our future home. We felt we had approached the sale in a sensible manner, how wrong were we!!
We visited Goa in April 2007 under the instruction of our English Solicitor to open a limited company we duly completed this and went home looking foward to the completion of our apartment.
Various payments were made these being cheques paid to the agent or transfers through our Solicitor, with latter payments being made via our Bank of India Account which was opened in England.
Unfortunately due to personal matters in 2008 we had to make a decision not to move to Goa and we were left with no alternative but to ask the agent to place the apartment up for sale, the apartment has been on the market since late 2008, on Friday we received an offer from a resident Indian.
This is where our problems have started, we have accepted the offer, and queried how to repatriate funds, we have now hit a brick wall with no information coming from our agent just avoinding my questions. We hold an account with the Bank of India in Goa, we have been to see them today (english branch) and they have advised it will not be a problem (I'm not convinced), we have tried to contact our english solicitor but he has been quite hostile towards us stating that he will not give us any advice, and that all transfers from India are barred.
Please can somebody help us, I have read with interest the different discussions, to a point now, that I don't even know if we legally own our apartment, we have put all of our savings into this property (like most people) and I now feel that we are going to come away with nothing.
I have been advised by the bank to employ a reputable accountant, unfortunately I have no knowledge of any accountants in Goa!
Any help that anyone could offer would be greatly appreciated.
Hi Welcome,
You can repatriate your fund providing you have bought them through proper banking channels and you can get your bank in India to supply you with the FIRC foreign Inward Remittance Certificates.You can only bring out of Indian what you bought in any profit that you make on your property you will have to pay CGT and leave the rest in Indian and spend at your will.
Your question as to if you own the property, probably not unless you have the deeds, which in your case is probably better for you if you are selling the place.What is your builder like?,if he is honest and I believe there are a few he should be able to help you and probably won't want to much to get your sales agreement changed to a Sales deed for the buyers.
Also make sure if you are getting out of India that you close the company properly,I know of people who have ended up in hot water because they sold up and left India and didn't close the company.
This is where you will need a good accountant and a company secretary to do this.I have one but they are in south Goa but I'm sure when others on BE pick up your thread there will be lots of contacts forthcoming who are in the north.
I suggest you get onto your bank in Goa and ask for your FIRC if you don't have them because this is the only way you are going to be able to get your money out of India legally.These are a must.
Please keep posting there will be others who offer help along the way.Also after you have made 3 post please vote on the save Goa Poll and send Lewis a PM with your story,there are people on here who are fighting this injustice and your vote and your story counts there are so many of us in the same boat and most of us have used saving and pension funds to pay for these property
GC Hope this helps
Re: Help Needed!!
--------------------------------------------------------------------------------
Quote:
Originally Posted by Goacrazy56
Hi Welcome,
You can repatriate your fund providing you have bought them through proper banking channels and you can get your bank in India to supply you with the FIRC foreign Inward Remittance Certificates.You can only bring out of Indian what you bought in any profit that you make on your property you will have to pay CGT and leave the rest in Indian and spend at your will.
Your question as to if you own the property, probably not unless you have the deeds, which in your case is probably better for you if you are selling the place.What is your builder like?,if he is honest and I believe there are a few he should be able to help you and probably won't want to much to get your sales agreement changed to a Sales deed for the buyers.
Also make sure if you are getting out of India that you close the company properly,I know of people who have ended up in hot water because they sold up and left India and didn't close the company.
This is where you will need a good accountant and a company secretary to do this.I have one but they are in south Goa but I'm sure when others on BE pick up your thread there will be lots of contacts forthcoming who are in the north.
I suggest you get onto your bank in Goa and ask for your FIRC if you don't have them because this is the only way you are going to be able to get your money out of India legally.These are a must.
Please keep posting there will be others who offer help along the way.Also after you have made 3 post please vote on the save Goa Poll and send Lewis a PM with your story,there are people on here who are fighting this injustice and your vote and your story counts there are so many of us in the same boat and most of us have used saving and pension funds to pay for these property
GC Hope this helps
Welcome Cralis
Sorry to hear of your problem - we are all in the same boat one way or another.
Who are your builders? You probably have an Agreement of Sale as no properties have been registered in the last few years if you are an FN.
Some builders are charging anything from £200 to £9,000!!! + to change
the names of the Sale Agreement.
GC has given you good advise keep posting - will transfer this to Buyer Beware, and send please send your story to Lewis on Save Goa thread, it is important for people to send their stories, it is in complete confidence.
There is a lot going on in the background which cannot be put on the site, it is a pity that all the "peeper" do not have the guts to join, and at the end of the day it will help them.__________________
Quote:
Originally Posted by Cralis1
Hi all, we are new to this forum but would appreciate some help/advice.
We purchased an off plan apartment in Calangute in March 2006 from an agent, with, every intention of making Goa our future home. We felt we had approached the sale in a sensible manner, how wrong were we!!
We visited Goa in April 2007 under the instruction of our English Solicitor to open a limited company we duly completed this and went home looking foward to the completion of our apartment.
Various payments were made these being cheques paid to the agent or transfers through our Solicitor, with latter payments being made via our Bank of India Account which was opened in England.
Unfortunately due to personal matters in 2008 we had to make a decision not to move to Goa and we were left with no alternative but to ask the agent to place the apartment up for sale, the apartment has been on the market since late 2008, on Friday we received an offer from a resident Indian.
This is where our problems have started, we have accepted the offer, and queried how to repatriate funds, we have now hit a brick wall with no information coming from our agent just avoinding my questions. We hold an account with the Bank of India in Goa, we have been to see them today (english branch) and they have advised it will not be a problem (I'm not convinced), we have tried to contact our english solicitor but he has been quite hostile towards us stating that he will not give us any advice, and that all transfers from India are barred.
Please can somebody help us, I have read with interest the different discussions, to a point now, that I don't even know if we legally own our apartment, we have put all of our savings into this property (like most people) and I now feel that we are going to come away with nothing.
I have been advised by the bank to employ a reputable accountant, unfortunately I have no knowledge of any accountants in Goa!
Any help that anyone could offer would be greatly appreciated.
Hi Welcome,
You can repatriate your fund providing you have bought them through proper banking channels and you can get your bank in India to supply you with the FIRC foreign Inward Remittance Certificates.You can only bring out of Indian what you bought in any profit that you make on your property you will have to pay CGT and leave the rest in Indian and spend at your will.
Your question as to if you own the property, probably not unless you have the deeds, which in your case is probably better for you if you are selling the place.What is your builder like?,if he is honest and I believe there are a few he should be able to help you and probably won't want to much to get your sales agreement changed to a Sales deed for the buyers.
Also make sure if you are getting out of India that you close the company properly,I know of people who have ended up in hot water because they sold up and left India and didn't close the company.
This is where you will need a good accountant and a company secretary to do this.I have one but they are in south Goa but I'm sure when others on BE pick up your thread there will be lots of contacts forthcoming who are in the north.
I suggest you get onto your bank in Goa and ask for your FIRC if you don't have them because this is the only way you are going to be able to get your money out of India legally.These are a must.
Please keep posting there will be others who offer help along the way.Also after you have made 3 post please vote on the save Goa Poll and send Lewis a PM with your story,there are people on here who are fighting this injustice and your vote and your story counts there are so many of us in the same boat and most of us have used saving and pension funds to pay for these property
GC Hope this helps
Re: Help Needed!!
--------------------------------------------------------------------------------
Quote:
Originally Posted by Goacrazy56
Hi Welcome,
You can repatriate your fund providing you have bought them through proper banking channels and you can get your bank in India to supply you with the FIRC foreign Inward Remittance Certificates.You can only bring out of Indian what you bought in any profit that you make on your property you will have to pay CGT and leave the rest in Indian and spend at your will.
Your question as to if you own the property, probably not unless you have the deeds, which in your case is probably better for you if you are selling the place.What is your builder like?,if he is honest and I believe there are a few he should be able to help you and probably won't want to much to get your sales agreement changed to a Sales deed for the buyers.
Also make sure if you are getting out of India that you close the company properly,I know of people who have ended up in hot water because they sold up and left India and didn't close the company.
This is where you will need a good accountant and a company secretary to do this.I have one but they are in south Goa but I'm sure when others on BE pick up your thread there will be lots of contacts forthcoming who are in the north.
I suggest you get onto your bank in Goa and ask for your FIRC if you don't have them because this is the only way you are going to be able to get your money out of India legally.These are a must.
Please keep posting there will be others who offer help along the way.Also after you have made 3 post please vote on the save Goa Poll and send Lewis a PM with your story,there are people on here who are fighting this injustice and your vote and your story counts there are so many of us in the same boat and most of us have used saving and pension funds to pay for these property
GC Hope this helps
Welcome Cralis
Sorry to hear of your problem - we are all in the same boat one way or another.
Who are your builders? You probably have an Agreement of Sale as no properties have been registered in the last few years if you are an FN.
Some builders are charging anything from £200 to £9,000!!! + to change
the names of the Sale Agreement.
GC has given you good advise keep posting - will transfer this to Buyer Beware, and send please send your story to Lewis on Save Goa thread, it is important for people to send their stories, it is in complete confidence.
There is a lot going on in the background which cannot be put on the site, it is a pity that all the "peeper" do not have the guts to join, and at the end of the day it will help them.__________________
I have an excellent company secretary based in Panjim, who will actually contact and do business whilst I am in the UK and is very efficient.
Please pm me if you would like his contact details.
Dread - my hot water has cooled now !!
x
Mar 2nd 2010, 12:14 am
#2977
Account Closed
Joined: May 2006
Posts: 1,146
Re: GOA - Buyer Beware!
Hello,
Just allow me to put here some of my experiences regarding the investment we did.
I'm a foreign national (not Indian) and major shareholder with my wife in an indian pvt ltd company in the tourist business which is running a resort. The land and buildings are the sole registered property of the indian company itself and not in anyway on our personal names.
Luckily we are not in the very odd and painfull situations that many of you are. The FEMA 1999 act is indeed quiet complicated and sometimes ambigius.
After reading and studying the act many times the conclusion is quiet clear e that only "persons resident for more than 182 days in India in the last financial year" (and this includes per definition an indian company) are allowed to buy property in India and then have to intimate the RBI of the sale through the proper channels.
So we are shareholders in the company and NOT owners of the property ! Under the FDI automatic route when transferring the investment funds to the comapany account through an AD-cat 1 (authorized dealer category 1) you will get an FIRC for those funds. This FIRC has to be intimated through the authorized dealer (bank) to the RBI within 30 days of receipt of the funds after which the RBI will send you the UIN (Unique Identification Numbers) .And then after the comapny has alloted the shares this again has to be intimated to the RBI within another 30 days with the FC-GPR documents. If this all has been correctly done you are officially and legally shareholder of the company.
Now those shares can be transferred and sold to residents and non-residents under certain conditions stipulated in the FEMA 1999 act, but the funds out of this sale which includes the original investment AND profits can be repatriated after deduction of the profit taxes....
Just allow me to put here some of my experiences regarding the investment we did.
I'm a foreign national (not Indian) and major shareholder with my wife in an indian pvt ltd company in the tourist business which is running a resort. The land and buildings are the sole registered property of the indian company itself and not in anyway on our personal names.
Luckily we are not in the very odd and painfull situations that many of you are. The FEMA 1999 act is indeed quiet complicated and sometimes ambigius.
After reading and studying the act many times the conclusion is quiet clear e that only "persons resident for more than 182 days in India in the last financial year" (and this includes per definition an indian company) are allowed to buy property in India and then have to intimate the RBI of the sale through the proper channels.
So we are shareholders in the company and NOT owners of the property ! Under the FDI automatic route when transferring the investment funds to the comapany account through an AD-cat 1 (authorized dealer category 1) you will get an FIRC for those funds. This FIRC has to be intimated through the authorized dealer (bank) to the RBI within 30 days of receipt of the funds after which the RBI will send you the UIN (Unique Identification Numbers) .And then after the comapny has alloted the shares this again has to be intimated to the RBI within another 30 days with the FC-GPR documents. If this all has been correctly done you are officially and legally shareholder of the company.
Now those shares can be transferred and sold to residents and non-residents under certain conditions stipulated in the FEMA 1999 act, but the funds out of this sale which includes the original investment AND profits can be repatriated after deduction of the profit taxes....
GC
Mar 2nd 2010, 2:38 am
#2978
Just Joined
Joined: Mar 2010
Posts: 2
Re: GOA - Buyer Beware!
Thank you very much for all of your advice, we have been trying extremely hard today to obtain our FIRC Certificates, unfortunately these are with our extremely hostile english solicitor (we really don't know what we,ve done to upset him
), I just hope we can get them. think its a case of gathering as much info as possible and see where we get. Thanks again.
), I just hope we can get them. think its a case of gathering as much info as possible and see where we get. Thanks again.
Mar 2nd 2010, 2:41 am
#2979
Just Joined
Joined: Feb 2010
Posts: 5
Re: GOA - Buyer Beware!
Dear GC....
Acually what I wanted to point to is that if the property is on ones own name and providing all FEMA1999 rules (and later amendments) are complied with, then after selling in this case only the original funds are repatriable and not the profits. Not so for company shares where profits are also repatriable.
BP
Acually what I wanted to point to is that if the property is on ones own name and providing all FEMA1999 rules (and later amendments) are complied with, then after selling in this case only the original funds are repatriable and not the profits. Not so for company shares where profits are also repatriable.
BP
Mar 2nd 2010, 2:44 am
#2980
Account Closed
Joined: May 2006
Posts: 1,146
Re: GOA - Buyer Beware!
Your welcome
Are you sure these are with your Solicitor in the UK,only they are issued form your bank in India?
Your solicitor is probably hostile because of all the property issues relating to Goa and of course I bet you have paid him,now becuase of the issues he wants to give you and others a wide birth.
Stay on the forum and keep us posted
All the best
GC 
Are you sure these are with your Solicitor in the UK,only they are issued form your bank in India?
Your solicitor is probably hostile because of all the property issues relating to Goa and of course I bet you have paid him,now becuase of the issues he wants to give you and others a wide birth.
Stay on the forum and keep us posted
All the best
GC
Mar 2nd 2010, 2:56 am
#2981
Account Closed
Joined: May 2006
Posts: 1,146
Re: GOA - Buyer Beware!
Dear GC....
Acually what I wanted to point to is that if the property is on ones own name and providing all FEMA1999 rules (and later amendments) are complied with, then after selling in this case only the original funds are repatriable and not the profits. Not so for company shares where profits are also repatriable.
BP
Acually what I wanted to point to is that if the property is on ones own name and providing all FEMA1999 rules (and later amendments) are complied with, then after selling in this case only the original funds are repatriable and not the profits. Not so for company shares where profits are also repatriable.
BP
Please stay on the site with us your expertise in the company route will be extremly valuble to some on BE
GC
I just love people who are knowledgeable and state fact not their opinionA long lost friend once quoted this and I will never forget it "Opinions are like a*seholes everyone has one"
(THANK YOU ENFIELD)respect for a great sadly missed friend, I still miss our chatsGC
Last edited by Goacrazy56; Mar 2nd 2010 at 2:59 am.
Mar 2nd 2010, 2:59 am
#2982
Just Joined
Joined: Mar 2010
Posts: 2
Re: GOA - Buyer Beware!
Been trawling through all of our documentation and we have letters from the Solicitors saying "confirmation of payment etc.. we will forward FIRC shortly" the FIRC's for 2 transfers we made were never sent to us. To be honest I can't believe I've not kept on top of the mounds of paperwork we seem to have gathered!
Some of our payments were sent via sterling cheque to our agent, what happens about these payemnts as there won't be any FIRC's for these? I've got my english bank statements showing the amounts being debited but nothing else.
Some of our payments were sent via sterling cheque to our agent, what happens about these payemnts as there won't be any FIRC's for these? I've got my english bank statements showing the amounts being debited but nothing else.
Mar 2nd 2010, 3:30 am
#2983
Account Closed
Joined: May 2006
Posts: 1,146
Re: GOA - Buyer Beware!
Been trawling through all of our documentation and we have letters from the Solicitors saying "confirmation of payment etc.. we will forward FIRC shortly" the FIRC's for 2 transfers we made were never sent to us. To be honest I can't believe I've not kept on top of the mounds of paperwork we seem to have gathered!
Some of our payments were sent via sterling cheque to our agent, what happens about these payemnts as there won't be any FIRC's for these? I've got my english bank statements showing the amounts being debited but nothing else.
Some of our payments were sent via sterling cheque to our agent, what happens about these payemnts as there won't be any FIRC's for these? I've got my english bank statements showing the amounts being debited but nothing else.
GC
sorry to bring bad news on this but the agents in ther UK are as bad as the builders and agents in Goa con men
Mar 2nd 2010, 3:33 am
#2984
Joined: May 2007
Location: Noni the Indian Goan Beach Mulberry
Posts: 8,227
Re: GOA - Buyer Beware!
A long lost friend once quoted this and I will never forget it "Opinions are like a*seholes everyone has one" (THANK YOU ENFIELD)respect for a great sadly missed friend, I still miss our chats
GC[/QUOTE]
Yes, a great character. I was privileged to have met Enfield, it has been over a year since his sad passing.
(THANK YOU ENFIELD)respect for a great sadly missed friend, I still miss our chatsGC
[/QUOTE]Yes, a great character. I was privileged to have met Enfield, it has been over a year since his sad passing.
Mar 2nd 2010, 4:11 am
#2985
Just Joined
Joined: Feb 2010
Posts: 5
Re: GOA - Buyer Beware!
GC,
Thank you for the compliment.
But my learning curve has also been very vey steep....After reading for a while all those people's stories here on BE I realize I have been very lucky to come across a very good CA (chartered accountant). But it helps a lot to get yourself into a good study of Indian corporate laws and FEMA, foreign exchange act. Because there is apparantly a lot of confusion....
I'm glad I can somehow help to better inform my fellow "India Lovers" but just to prove that my statement is correct I paste herunder the related FEMA articles....
Transfer Of Shares/Debentures
1.14 Transfer of shares in the following categories of cases is allowed under automatic route:
(a) Transfer of shares from resident to non-resident including acquisition of shares in an existing company subject to sectoral policy on FDI where approval of RBI/SEBI/IRDA is required and also subject to prescribed pricing guidelines.
(b) Conversion of ECB/Loan into equity provided the activity of the company is covered under automatic route, the foreign equity after such conversion falls within the sectoral cap and also complies with prescribed pricing guidelines.
(c) Cases of increase in foreign equity participation by fresh issue of shares as well as conversion of preference shares into equity capital provided such increase within the sectoral cap in the relevant sectors, are within the automatic route and also complies with prescribed pricing guidelines.
1.15 General permission of the RBI has been granted to non-residents/NRIs for transfer of shares and convertible debentures of an Indian company as under:
(i) A person resident outside India (Other than NRI and OCB) may transfer by way of sale or gift shares or convertible debentures to any person resident outside India (including NRIs); provided transferee has obtained prior permission of SIA/FIPB, in terms of Press Note No.1 (2005 Series) to acquire the shares if he has an existing venture or tie-up in India in the same field in which the Indian company whose shares are being transferred is engaged.
(ii) NRI or OCB may transfer by way of sale or gift the shares or convertible debentures held by him or it to another non-resident Indian; provided transferee has obtained prior permission of Central Government in terms of Press Note No.1 (2005 Series) to acquire the shares if he has an existing venture or tie-up in India in the same field in which the Indian company whose shares are being transferred, is engaged.
(iii) The person resident outside India may transfer any security to a person resident in India by way of gift.
(iv) A person resident outside India may sell the shares and convertible debentures of an Indian company on a recognized Stock Exchange in India through a registered broker
CHAPTER V
EXCHANGE CONTROL
Foreign Exchange Management Act
5.1 The Reserve Bank of India’s Exchange Control Department, administers Foreign Exchange Management Act, 1999, (FEMA).
Repatriation of Investment Capital and Profits Earned in India
5.2 (i) All foreign investments are freely repatriable, subject to sectoral policies and except for cases where NRIs choose to invest specifically under non-repatriable schemes. Dividends declared on foreign investments can be remitted freely through an Authorised Dealer.
(ii) Non-residents can sell shares on stock exchange without prior approval of RBI and repatriate through a bank the sale proceeds if they hold the shares on repatriation basis and if they have necessary NOC/tax clearance certificate issued by Income Tax authorities.
(iii) For sale of shares through private arrangements, Regional offices of RBI grant permission for recognized units of foreign equity in Indian company in terms of guidelines indicated in Regulation 10.B of Notification No. FEMA.20/2000 RB dated May ‘2000. The sale price of shares on recognized units is to be determined in accordance with the guidelines prescribed under Regulation 10B(2) of the above Notification.
(iv) Profits, dividends, etc.,(which are remittances classified as current account transactions) can be freely repatriated.
4
Thank you for the compliment.
But my learning curve has also been very vey steep....After reading for a while all those people's stories here on BE I realize I have been very lucky to come across a very good CA (chartered accountant). But it helps a lot to get yourself into a good study of Indian corporate laws and FEMA, foreign exchange act. Because there is apparantly a lot of confusion....
I'm glad I can somehow help to better inform my fellow "India Lovers" but just to prove that my statement is correct I paste herunder the related FEMA articles....
Transfer Of Shares/Debentures
1.14 Transfer of shares in the following categories of cases is allowed under automatic route:
(a) Transfer of shares from resident to non-resident including acquisition of shares in an existing company subject to sectoral policy on FDI where approval of RBI/SEBI/IRDA is required and also subject to prescribed pricing guidelines.
(b) Conversion of ECB/Loan into equity provided the activity of the company is covered under automatic route, the foreign equity after such conversion falls within the sectoral cap and also complies with prescribed pricing guidelines.
(c) Cases of increase in foreign equity participation by fresh issue of shares as well as conversion of preference shares into equity capital provided such increase within the sectoral cap in the relevant sectors, are within the automatic route and also complies with prescribed pricing guidelines.
1.15 General permission of the RBI has been granted to non-residents/NRIs for transfer of shares and convertible debentures of an Indian company as under:
(i) A person resident outside India (Other than NRI and OCB) may transfer by way of sale or gift shares or convertible debentures to any person resident outside India (including NRIs); provided transferee has obtained prior permission of SIA/FIPB, in terms of Press Note No.1 (2005 Series) to acquire the shares if he has an existing venture or tie-up in India in the same field in which the Indian company whose shares are being transferred is engaged.
(ii) NRI or OCB may transfer by way of sale or gift the shares or convertible debentures held by him or it to another non-resident Indian; provided transferee has obtained prior permission of Central Government in terms of Press Note No.1 (2005 Series) to acquire the shares if he has an existing venture or tie-up in India in the same field in which the Indian company whose shares are being transferred, is engaged.
(iii) The person resident outside India may transfer any security to a person resident in India by way of gift.
(iv) A person resident outside India may sell the shares and convertible debentures of an Indian company on a recognized Stock Exchange in India through a registered broker
CHAPTER V
EXCHANGE CONTROL
Foreign Exchange Management Act
5.1 The Reserve Bank of India’s Exchange Control Department, administers Foreign Exchange Management Act, 1999, (FEMA).
Repatriation of Investment Capital and Profits Earned in India
5.2 (i) All foreign investments are freely repatriable, subject to sectoral policies and except for cases where NRIs choose to invest specifically under non-repatriable schemes. Dividends declared on foreign investments can be remitted freely through an Authorised Dealer.
(ii) Non-residents can sell shares on stock exchange without prior approval of RBI and repatriate through a bank the sale proceeds if they hold the shares on repatriation basis and if they have necessary NOC/tax clearance certificate issued by Income Tax authorities.
(iii) For sale of shares through private arrangements, Regional offices of RBI grant permission for recognized units of foreign equity in Indian company in terms of guidelines indicated in Regulation 10.B of Notification No. FEMA.20/2000 RB dated May ‘2000. The sale price of shares on recognized units is to be determined in accordance with the guidelines prescribed under Regulation 10B(2) of the above Notification.
(iv) Profits, dividends, etc.,(which are remittances classified as current account transactions) can be freely repatriated.
4
