noni

DOZENS of British and other expatriates in Goa face losing their dream retirement homes and businesses over claims that they have been bought illegally.

Twelve properties have been confiscated and 32 owners have been served with eviction notices as local resentment grows over foreigners owning homes and businesses.

Local politicians have stirred nationalist feelings against foreign owners, who they blame for inflating property prices.

An influx of Russian and Israeli buyers has heightened tensions amid allegations of drug trafficking and prostitution.

Officials have identified about 450 foreign-owned properties they believe were purchased illegally, many of them retirement apartments, guesthouses and hotels owned by British residents.
One British guest-house owner, who asked not to be named, said the move was motivated by “racism” which had been encouraged by local politicians.

He said he had been told that the land he bought more than a decade ago had originally been agricultural, and that his purchase was illegal unless he could provide documents permitting its conversion for tourism purposes. “People have bought old homes with licences and planning permission, but in retrospect they’ve changed the law so that foreigners can’t own,” he said. “I’ve had a confiscation order, and I’ve appealed against it. Lots of [British] people have, it’s not just me. It’s my life, my retirement plan and everything.”

His Goan neighbours, despite sharing the same plot, had not been served with confiscation notices, he said.

Others have been told their homes and businesses are being confiscated because they had been living in India on tourist visas when they bought their properties.

Under Indian law, foreigners can only buy property if they have business or employment visas and have lived in the country for two years.

Sir James Bevan, Britain’s High Commissioner to India, raised the concerns of home owners with Goa’s chief minister, and said he had been assured that all those who had legally acquired their properties would be unaffected.


www.goanvoice.org.uk. from Daily Telegraph 5/4/2013

noni

While the ED has issued notices to foreigners who have purchased properties in Goa violating Forex rules, a lawyer representing some of them has questioned confiscation of the properties, despite allowing them to appeal in higher courts. "These are foreign nationals and they cannot run away with the land and buildings. I cannot understand the urgency to bypass the judicial process of review, specially when the liberty of judicial review has expressly been granted by the Enforcement Directorate (ED)," advocate Vikram Varma said.

Verma is representing several Britishers and Russians in these cases before the ED.

In every case of confiscation, the ED has expressly given the liberty to appeal on payment of penalty.

Such a liberty affirms that the order of the ED is not final and is subject to judicial scrutiny, he said. "If the ED cannot wait for a judicial decision on the matter then there was no reason for a system of appeal in place," he said.

Government statistics reveal that 438 cases of foreigners violating Foreign Exchange Management Act (FEMA) to buy properties are being investigated by the ED. Of these, 12 cases have already been ordered for penalty and confiscation.

Goa Chief Minister Manohar Parrikar had yesterday said that the government would move to the concerned authority seeking leniency for senior citizens and those small structures which are old from the purview of confiscation.

The government said that it will request that these cases should be disposed of by levying penalty. The ED currently has imposed a penalty ranging from Rs 3-20 lakh on foreigners, depending upon the case. Varma said none of his clients has purchased agriculture property, which is a major violation in the state.

"But this (whether the property was agricultural) has to go through a judicial scrutiny. Both my clients and the ED should wait patiently till the courts decide on the matter," he added.

http://www.business-standard.com/art...0400505_1.html

noni

http://www.thegoan.net/Goa/Big-Story...OOR/03757.html



GOA SHUTS THE DOOR


The continuing story of how Goa treats its long time foreign guests. This time, an expose of how our land has committed fraud and cheated the trust that foreigners had invested in buying property here
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noni

Reading the excellent article - I feel the Advocates are totally to blame, the buck stops there. this is what the ED should be looking at.

My Solicitor in the UK trys to tell me that "The Law Society is the same all over the world! what planet does he live on.

Jessica

Yes excellent continuing coverage of the issue. Triggers anger every time!

dreadsoc

Good use of the case studies in this article too.

Keep up the good work AJ

Dread - x

noni

6 Apr: Herald. The controversy over foreigners purchasing land, property and apartments in Goa is back under the spotlight … the mainly British buyers have protested volubly, drawing the media, diplomats and UK politicians to their plight … many on the list are owners of small apartments on the coast or old houses purchased by retirees on pension benefits with the intention of wintering in Goa's sunny climes when six-month visas were being issued and Britons flocked here in droves…An amnesty on humanitarian grounds in genuine cases only could take the edge off some diplomatic unpleasantness… the government is on the right track in promising a speedy, lenient and fair exit from the issue for especially some of the retirees whose only fault was that they liked the place enough to want to stay on.
www.goanvoice.org.uk

http://www.epaperoheraldo.in/Details...=&dat=4/6/2013

a_f_d

Noni, we've had this discussion before, more than once. These advocates told us we could buy if we met FEMA requirements. These same advocates are fighting (and winning) cases against the DoE and others who say we didn't meet these requirements. How are they to blame?

AndyD

dreadsoc

To put the situation fairly lawyers and other licensed professionals read the law and there was a standard interpretation which was applied as the norm and people buying properties were given standard advice.
Over the period of 2006 - 2007 these laws (primarily FEMA) were scrutinised and new interpretations were delivered (espeically by the ED), and retrospectively applied, hence investigations with threats of confiscaion began. It was also at this time that they began to bring the issue of visas into FEMA, despite there being no mention of visas in FEMA.
Without doubt following the 2006 - 2007 period there are some lawyers and other professionals who continued to give assurances to foreigners that they could buy property via the same routes they had always advised, and in such cases it has to be deemd that the lawyerrs and professionals acted wrongly, but in the main, most gave advice which was believed to be good and true at the given time.

As things currently stand there are a lot of Show Cause Notices, summonses, and confiscation orders being issued, but at the same time I can cite THREE cases where people have been completely cleared by the ED. Additionally I have become aware this week of a case where a local lawyer has fought a confiscation order and had it quashed and the fines refunded in full.
I have also seen some of the responses being submitted by a select few local lawyers in Goa, and they are putting together some very strong defences for people which is promising.

It seems that the Goa ED is getting some distinct directives issued from Mumbai, but it also seems that judicial due process is taking place and wrongs are being put right.

What we must also remember is that there are some strong but sensitive political moves afoot on this issue, and the CM of Goa has now gone public in his support of foreigners who own property and took steps to do so legally. Additionally you have the BHC takling a lot of action on your behalf now. Ultimately there will be the time when cases have to be brought before the courts for appeals and this will bring with it some absolute judgements which will become absolute law (these are known as "stated cases" or "statute law" in the UK and is where the appeal courts make a ruling which then becomes the definitive).

Let's just hang in there folks - don't lose hope yet !!!!

Dread - x

hemingway

It will be very interesting to see how this whole debacle plays out & how long it drags on for. If & when purchases (individual route and/or private limited company route) are verified as "legitimate" - the next decision will be between, retain your property OR sell your property & TRY to get your money back to the UK.

H.

a_f_d

I would be interested to know whether anyone has done this by following the rules:
If you are Resident as per FEMA and have a bank account then you should be able to remit the money to the UK through 'normal banking channels' but would be required to produce a Chartered Accountant's certificate that all tax has been paid. This would probably just be Long Term Capital Gains Tax which is 20% calculated on the difference between your sale price and (your purchase price multiplied by inflation) - there is also an allowance for improvement costs.
If you are not FEMA resident at the time of the sale then the rules may well be the same but I haven't seen them written down anywhere - I guess that you would need RBI permission as well as the above.
Anyone done it?

AndyD 8-)₹

federicoPa

But, as far as I know the sale deed registrations, at least in Mapusa, are still suspended, and before seeing what will happen to repatriate the money the Sub Registrar, ore somebody else, should remove the Stop signal.

Is that correct ?

noni

Because many Advocates advised people wrongly, or underhandedly - not everybody has your knowledge and a good Advocate like I had. We bought before the retrospective rules came in. In my view it was up to the Advocates to see you met FEMA etc. that is what we paid them for.
Yes some are winning cases - BUT people are paying yet again for a job which they should have done in the first place.

As my Advocate says in the UK - QUOTE The Law Society is the same across the world."

a_f_d

Yes, keep your fingers crossed, but the same rules for repatriation of money apply to people who 'sold' their Agreement for Sale - which quite a lot of people have done.

AndyD 8-)₹

Return of Santan

Hi All,

Yes I have returned after a 2 year abscence ( missing in battle ?) some of you know the reasons why , but I just wanted to say a big well done and thank you to those involved in the sterling work that has been going on behind the scenes with the various meetings, discussions etc. whilst I have been "away"

I tried to sign in using my old details but can't seem to get signed in ? Any admin help please ?

Cheers Santan