GOA - Buyer Beware!
May 19th 2007, 10:33 am
#121
BE Enthusiast
Joined: May 2007
Location: Goa/UK
Posts: 589
Re: GOA - Buyer Beware!
Hi old man,
I have a drawer full of these agreements, sometimes i call them allotment letters sometimes agreement to buy, sometimes agreement to sale. You can have them with or without stamps( the stamp paper is freely available to anyone for a few rupees you see)
I have these agreements for all sorts of properties and constructions, London Bridge is very popular with tourists at the moment.It is cheap relative to other bridges in other capital cities and makes people think they are getting a bargain. I also have associates that will charge you massive fees for further misinformation, but thats reserved for the not too bright ones. The ones who cannot see the obvious conflict of interest.
Next boat full, please come this way, the sun is shining !
douglas
I have a drawer full of these agreements, sometimes i call them allotment letters sometimes agreement to buy, sometimes agreement to sale. You can have them with or without stamps( the stamp paper is freely available to anyone for a few rupees you see)
I have these agreements for all sorts of properties and constructions, London Bridge is very popular with tourists at the moment.It is cheap relative to other bridges in other capital cities and makes people think they are getting a bargain. I also have associates that will charge you massive fees for further misinformation, but thats reserved for the not too bright ones. The ones who cannot see the obvious conflict of interest.
Next boat full, please come this way, the sun is shining !
douglas
Called FOREIGNERS OWN REAL ESTATE FIRMS IN GOA
Foreign Nationals who have to fulfil stringent legal requirements to purchase immovable property in India as well as in Goa, have not only been flouting the regulations, but have been setting up real estate agencies in Goa.
[B]GOAN OBSERVER[B]INVESTIGATIONS HAVE RECENTLY REVEALED THAT A FOREIGN NATIONAL IS RUNNING A REAL ESTATE AGENCY CALLED
Goa Property Sales, which boasts of being "English-owned and run" It is a concern of Steven Wood Estate Agency Pvt.Ltd. and was established nearly two years ago to specifically represent an market new Goan property off-plan (i.e. those that are still under construction) in India and overseas.
[B]STRIKING GOLD[B]
WITH ONE OFFICE IN THE UK AND FOUR OFFICES IN GOA (TWO IN CALANGUTE, ONE IN SIOLIM AND ONE NEWLY ESTABLISHED IN MARGO)[B]
this real estate agency makes its profits from the sale of off-plan properties, those nearling completion and a number of remarketed properties as well. A vist to their website www.goapropertysales.co.uk opens an array of roughly around 250 Apartments terraced houses, semi-detached and free standing villas for sale. Bronze up to £24K Silver £24K to £38K gold £38K to £60K and Platinium above. Some of the places being advertised have been facing the wrath of lopsided development for quite some time now.
Frequently asked Questions No. 16 on the website of the Reserve Bank of India specifies that "a foreigner cannot set up a partnership/proprietorship concern in India"
Annexture 1. Section B. of Master Circular No. 02/2006/07 issued by the RBI lists "Housing and Real Estate business" as one of the activities/items for which Foreign Direct Investment is prohibited. In spite of these restrictions
Goa PropertyServices claims to be a registered real estate agency in India. Having personally invested here in property, this organization has stated on its website that "Goa is a sound investment for a number of reasons. The local people are friendly and helpful, the cost of living is very low, the scenery, beaches and food are excellent and the climate is second to none and the capital growth on our investment has increased by at least 100% in just 18 months.
RBI Rules
Then again Part 11 Section 5.3 of the RBI Master Circular states that "foreign nationals of non-indian origin resident outside India are not permitted to acquire any immovable property in India, unless such property is acquired by way of inheritance from a person who was resident in India.
Nevertheless, many foreign national of non-indian origin have bought immovalble property in India by residing in the country for more than the
stipulated 182 days, and presenting proof of residency. OR BY setting up a limited company then acquiring property in its name HOWEVER AS PER annexure 2 Section 6 of the RBI Master Circular 02/2006-07 only NRI'S ARE ALLOWED TO INVEST 100% IN REAL ESTATE IN India. A senior official of the RBI confirmed this when he told the Goan Observer that foreigners are forbidden from investing in real estate development or setting up real estate companies in India.
BENDING THE LAW
BUT even though foreigners are barred from investing in real estate unless they fulfil the FEMA requirements, many real estate companies - including the English-owned Goa PropertySales - have been blatantly bending the law by helping potential buyers to register "fake companies, which are set up exclusively for circumventing the restrictions imposed by the RBI.
For as per a specification of FEMA "A person resident outside India who has a branch, office or other place of business, (excluding a liaison Office) in India for carrying on his business activity, with requisite approvals wherever necessary, is eligible to acquire immovable property inIndia which is necessary for or incidental to carrying on such activity, provided that all applicable laws, rules, regulations or directions in force are duly complied with.
THE OUTLOOK edition dated January 29th 2007 reports that the typical formual used by foreigners in buying property in the Sate is to float a company with an Indian partner and then register it in Goa. Once this is done, hugh remittances are pumped in for an alleged investment into real estate. And upon buying the property, the company severs all ties with its Indian partners.
NOT SURPRISING - Goa PropertySales also offers a Limited Company Formation service. GOAN OBSERVER received a series of correspondence e-mails between a prospective client, Pete Edwards Jr, and the MD OF THE STEVEN WOOD ESTATE AGENCY PVT.Ltd., Steven Wood, which has been instrumental in highlighting the suspect operations carried out by Goa Property Sales in aiding individuals to acquire property in Goa.
When Edwards (who is the holder of a dual UK and USA CITIZENSHIP) emailed Wood for help to acquire property in Goa without relinquishing his dual citizenship, the latter replied that the best way to do so would be to set up an Indian Limited Company.
In later correspondence Wood evealed to Edwards that the Limited Company Formation Service offered by Goa Property Sales would be charge a
whopping [COLOR="Red"]RS 50,000 to help set up a company in India, or which Rs 25,000 would be refundable once Edwards purchased from them! Moreover, "legal and registration" charges would amount to a separate sum of RS 40,000.[COLOR="Black"]Wood did not, however furnish a step by step guide as requested by Edwards, on all the formalities of buying property in Goa - from the formation of an Indian Limited Company to the final sale of property.
The proprietors of Goa Property Sales, on their website, claim to have bought property off-plan in Goa, with themselves NOT residing in India at the time of the purchase. ADV. Cleofato Coutinho speculates that they must have given their power of attorney to a second party to buy the property on their behalf. Replying to whether they had stepped on the FEMA'S TOES BY SETTING UP A BUSINESS IN REAL ESTATE IN GOA he opined, "An agency of this type has no particular status. It just plays the role of the middleman, helping to form an alliance between the actual developer and the client.
On how a foreign national can acquire property in India Adv.Coutinho said, "Foreigners can buy constructed property in their own name after they have stayed six months in India and submitted some proof of their residency to the authories. However, this procedure has become very tough because hardly any visas are issued to foreigners for a span of six months nowadays. Therefore he continued, "they (foreigners) have two other options.[COLOR="Black"] they can either set up a Limited company in India or enter into a Agreement of Lease of Property, the duration of which cannot cross FIVE YEARS. IN THIS WAY, THEY CAN INCORPORATE INTO A COMPANY AND THEN GO ABOUT ACQUIRING SOME MORE. However, an individual cannot enter into an Agreement of Lease. It has to be done in the name of the company" he explained.
The ingenuity of foreign nationals desirous of having their sale of Goa's real estate pie has scaled new heights, with them being more than able to exploit a loophale in the law to their maximum advantage. Therefore, if over 12,50.000 sq.mts of property in Goa has been purchased by them so far, itwon't be long before they begin drafting a regional plan of their own!
May 19th 2007, 10:39 am
#122
BE Enthusiast
Thread Starter
Joined: Mar 2007
Posts: 863
Re: GOA - Buyer Beware!
Hi all,
Just an after thought on my last post , you can have the agreement on forged stamp paper or genuine ( for a slightly higher fee of course)
Yes,they forge stamp paper too (Herald article last year)
Thats when they are not adulterating the petrol or the milk.( Herald again)
douglas
Just an after thought on my last post , you can have the agreement on forged stamp paper or genuine ( for a slightly higher fee of course)
Yes,they forge stamp paper too (Herald article last year)
Thats when they are not adulterating the petrol or the milk.( Herald again)
douglas
May 19th 2007, 10:45 am
#123
BE Enthusiast
Thread Starter
Joined: Mar 2007
Posts: 863
Re: GOA - Buyer Beware!
Must say you are right = the Agreement of Sale do look impressive expecially the ones in full colour!!!. Anyway as it is raining I think I will share with you an article from the Goan Observer by Misha Fernandes. (Hope I can finish typing before the match this afternoon)
Called FOREIGNERS OWN REAL ESTATE FIRMS IN GOA
Foreign Nationals who have to fulfil stringent legal requirements to purchase immovable property in India as well as in Goa, have not only been flouting the regulations, but have been setting up real estate agencies in Goa.
[B]GOAN OBSERVER[B]INVESTIGATIONS HAVE RECENTLY REVEALED THAT A FOREIGN NATIONAL IS RUNNING A REAL ESTATE AGENCY CALLED
Goa Property Sales, which boasts of being "English-owned and run" It is a concern of Steven Wood Estate Agency Pvt.Ltd. and was established nearly two years ago to specifically represent an market new Goan property off-plan (i.e. those that are still under construction) in India and overseas.
[B]STRIKING GOLD[B]
WITH ONE OFFICE IN THE UK AND FOUR OFFICES IN GOA (TWO IN CALANGUTE, ONE IN SIOLIM AND ONE NEWLY ESTABLISHED IN MARGO)[B]
this real estate agency makes its profits from the sale of off-plan properties, those nearling completion and a number of remarketed properties as well. A vist to their website www.goapropertysales.co.uk opens an array of roughly around 250 Apartments terraced houses, semi-detached and free standing villas for sale. Bronze up to £24K Silver £24K to £38K gold £38K to £60K and Platinium above. Some of the places being advertised have been facing the wrath of lopsided development for quite some time now.
Frequently asked Questions No. 16 on the website of the Reserve Bank of India specifies that "a foreigner cannot set up a partnership/proprietorship concern in India"
Annexture 1. Section B. of Master Circular No. 02/2006/07 issued by the RBI lists "Housing and Real Estate business" as one of the activities/items for which Foreign Direct Investment is prohibited. In spite of these restrictions
Goa PropertyServices claims to be a registered real estate agency in India. Having personally invested here in property, this organization has stated on its website that "Goa is a sound investment for a number of reasons. The local people are friendly and helpful, the cost of living is very low, the scenery, beaches and food are excellent and the climate is second to none and the capital growth on our investment has increased by at least 100% in just 18 months.
RBI Rules
Then again Part 11 Section 5.3 of the RBI Master Circular states that "foreign nationals of non-indian origin resident outside India are not permitted to acquire any immovable property in India, unless such property is acquired by way of inheritance from a person who was resident in India.
Nevertheless, many foreign national of non-indian origin have bought immovalble property in India by residing in the country for more than the
stipulated 182 days, and presenting proof of residency. OR BY setting up a limited company then acquiring property in its name HOWEVER AS PER annexure 2 Section 6 of the RBI Master Circular 02/2006-07 only NRI'S ARE ALLOWED TO INVEST 100% IN REAL ESTATE IN India. A senior official of the RBI confirmed this when he told the Goan Observer that foreigners are forbidden from investing in real estate development or setting up real estate companies in India.
BENDING THE LAW
BUT even though foreigners are barred from investing in real estate unless they fulfil the FEMA requirements, many real estate companies - including the English-owned Goa PropertySales - have been blatantly bending the law by helping potential buyers to register "fake companies, which are set up exclusively for circumventing the restrictions imposed by the RBI.
For as per a specification of FEMA "A person resident outside India who has a branch, office or other place of business, (excluding a liaison Office) in India for carrying on his business activity, with requisite approvals wherever necessary, is eligible to acquire immovable property inIndia which is necessary for or incidental to carrying on such activity, provided that all applicable laws, rules, regulations or directions in force are duly complied with.
THE OUTLOOK edition dated January 29th 2007 reports that the typical formual used by foreigners in buying property in the Sate is to float a company with an Indian partner and then register it in Goa. Once this is done, hugh remittances are pumped in for an alleged investment into real estate. And upon buying the property, the company severs all ties with its Indian partners.
NOT SURPRISING - Goa PropertySales also offers a Limited Company Formation service. GOAN OBSERVER received a series of correspondence e-mails between a prospective client, Pete Edwards Jr, and the MD OF THE STEVEN WOOD ESTATE AGENCY PVT.Ltd., Steven Wood, which has been instrumental in highlighting the suspect operations carried out by Goa Property Sales in aiding individuals to acquire property in Goa.
When Edwards (who is the holder of a dual UK and USA CITIZENSHIP) emailed Wood for help to acquire property in Goa without relinquishing his dual citizenship, the latter replied that the best way to do so would be to set up an Indian Limited Company.
In later correspondence Wood evealed to Edwards that the Limited Company Formation Service offered by Goa Property Sales would be charge a
whopping [COLOR="Red"]RS 50,000 to help set up a company in India, or which Rs 25,000 would be refundable once Edwards purchased from them! Moreover, "legal and registration" charges would amount to a separate sum of RS 40,000.[COLOR="Black"]Wood did not, however furnish a step by step guide as requested by Edwards, on all the formalities of buying property in Goa - from the formation of an Indian Limited Company to the final sale of property.
The proprietors of Goa Property Sales, on their website, claim to have bought property off-plan in Goa, with themselves NOT residing in India at the time of the purchase. ADV. Cleofato Coutinho speculates that they must have given their power of attorney to a second party to buy the property on their behalf. Replying to whether they had stepped on the FEMA'S TOES BY SETTING UP A BUSINESS IN REAL ESTATE IN GOA he opined, "An agency of this type has no particular status. It just plays the role of the middleman, helping to form an alliance between the actual developer and the client.
On how a foreign national can acquire property in India Adv.Coutinho said, "Foreigners can buy constructed property in their own name after they have stayed six months in India and submitted some proof of their residency to the authories. However, this procedure has become very tough because hardly any visas are issued to foreigners for a span of six months nowadays. Therefore he continued, "they (foreigners) have two other options.[COLOR="Black"] they can either set up a Limited company in India or enter into a Agreement of Lease of Property, the duration of which cannot cross FIVE YEARS. IN THIS WAY, THEY CAN INCORPORATE INTO A COMPANY AND THEN GO ABOUT ACQUIRING SOME MORE. However, an individual cannot enter into an Agreement of Lease. It has to be done in the name of the company" he explained.
The ingenuity of foreign nationals desirous of having their sale of Goa's real estate pie has scaled new heights, with them being more than able to exploit a loophale in the law to their maximum advantage. Therefore, if over 12,50.000 sq.mts of property in Goa has been purchased by them so far, itwon't be long before they begin drafting a regional plan of their own!
Called FOREIGNERS OWN REAL ESTATE FIRMS IN GOA
Foreign Nationals who have to fulfil stringent legal requirements to purchase immovable property in India as well as in Goa, have not only been flouting the regulations, but have been setting up real estate agencies in Goa.
[B]GOAN OBSERVER[B]INVESTIGATIONS HAVE RECENTLY REVEALED THAT A FOREIGN NATIONAL IS RUNNING A REAL ESTATE AGENCY CALLED
Goa Property Sales, which boasts of being "English-owned and run" It is a concern of Steven Wood Estate Agency Pvt.Ltd. and was established nearly two years ago to specifically represent an market new Goan property off-plan (i.e. those that are still under construction) in India and overseas.
[B]STRIKING GOLD[B]
WITH ONE OFFICE IN THE UK AND FOUR OFFICES IN GOA (TWO IN CALANGUTE, ONE IN SIOLIM AND ONE NEWLY ESTABLISHED IN MARGO)[B]
this real estate agency makes its profits from the sale of off-plan properties, those nearling completion and a number of remarketed properties as well. A vist to their website www.goapropertysales.co.uk opens an array of roughly around 250 Apartments terraced houses, semi-detached and free standing villas for sale. Bronze up to £24K Silver £24K to £38K gold £38K to £60K and Platinium above. Some of the places being advertised have been facing the wrath of lopsided development for quite some time now.
Frequently asked Questions No. 16 on the website of the Reserve Bank of India specifies that "a foreigner cannot set up a partnership/proprietorship concern in India"
Annexture 1. Section B. of Master Circular No. 02/2006/07 issued by the RBI lists "Housing and Real Estate business" as one of the activities/items for which Foreign Direct Investment is prohibited. In spite of these restrictions
Goa PropertyServices claims to be a registered real estate agency in India. Having personally invested here in property, this organization has stated on its website that "Goa is a sound investment for a number of reasons. The local people are friendly and helpful, the cost of living is very low, the scenery, beaches and food are excellent and the climate is second to none and the capital growth on our investment has increased by at least 100% in just 18 months.
RBI Rules
Then again Part 11 Section 5.3 of the RBI Master Circular states that "foreign nationals of non-indian origin resident outside India are not permitted to acquire any immovable property in India, unless such property is acquired by way of inheritance from a person who was resident in India.
Nevertheless, many foreign national of non-indian origin have bought immovalble property in India by residing in the country for more than the
stipulated 182 days, and presenting proof of residency. OR BY setting up a limited company then acquiring property in its name HOWEVER AS PER annexure 2 Section 6 of the RBI Master Circular 02/2006-07 only NRI'S ARE ALLOWED TO INVEST 100% IN REAL ESTATE IN India. A senior official of the RBI confirmed this when he told the Goan Observer that foreigners are forbidden from investing in real estate development or setting up real estate companies in India.
BENDING THE LAW
BUT even though foreigners are barred from investing in real estate unless they fulfil the FEMA requirements, many real estate companies - including the English-owned Goa PropertySales - have been blatantly bending the law by helping potential buyers to register "fake companies, which are set up exclusively for circumventing the restrictions imposed by the RBI.
For as per a specification of FEMA "A person resident outside India who has a branch, office or other place of business, (excluding a liaison Office) in India for carrying on his business activity, with requisite approvals wherever necessary, is eligible to acquire immovable property inIndia which is necessary for or incidental to carrying on such activity, provided that all applicable laws, rules, regulations or directions in force are duly complied with.
THE OUTLOOK edition dated January 29th 2007 reports that the typical formual used by foreigners in buying property in the Sate is to float a company with an Indian partner and then register it in Goa. Once this is done, hugh remittances are pumped in for an alleged investment into real estate. And upon buying the property, the company severs all ties with its Indian partners.
NOT SURPRISING - Goa PropertySales also offers a Limited Company Formation service. GOAN OBSERVER received a series of correspondence e-mails between a prospective client, Pete Edwards Jr, and the MD OF THE STEVEN WOOD ESTATE AGENCY PVT.Ltd., Steven Wood, which has been instrumental in highlighting the suspect operations carried out by Goa Property Sales in aiding individuals to acquire property in Goa.
When Edwards (who is the holder of a dual UK and USA CITIZENSHIP) emailed Wood for help to acquire property in Goa without relinquishing his dual citizenship, the latter replied that the best way to do so would be to set up an Indian Limited Company.
In later correspondence Wood evealed to Edwards that the Limited Company Formation Service offered by Goa Property Sales would be charge a
whopping [COLOR="Red"]RS 50,000 to help set up a company in India, or which Rs 25,000 would be refundable once Edwards purchased from them! Moreover, "legal and registration" charges would amount to a separate sum of RS 40,000.[COLOR="Black"]Wood did not, however furnish a step by step guide as requested by Edwards, on all the formalities of buying property in Goa - from the formation of an Indian Limited Company to the final sale of property.
The proprietors of Goa Property Sales, on their website, claim to have bought property off-plan in Goa, with themselves NOT residing in India at the time of the purchase. ADV. Cleofato Coutinho speculates that they must have given their power of attorney to a second party to buy the property on their behalf. Replying to whether they had stepped on the FEMA'S TOES BY SETTING UP A BUSINESS IN REAL ESTATE IN GOA he opined, "An agency of this type has no particular status. It just plays the role of the middleman, helping to form an alliance between the actual developer and the client.
On how a foreign national can acquire property in India Adv.Coutinho said, "Foreigners can buy constructed property in their own name after they have stayed six months in India and submitted some proof of their residency to the authories. However, this procedure has become very tough because hardly any visas are issued to foreigners for a span of six months nowadays. Therefore he continued, "they (foreigners) have two other options.[COLOR="Black"] they can either set up a Limited company in India or enter into a Agreement of Lease of Property, the duration of which cannot cross FIVE YEARS. IN THIS WAY, THEY CAN INCORPORATE INTO A COMPANY AND THEN GO ABOUT ACQUIRING SOME MORE. However, an individual cannot enter into an Agreement of Lease. It has to be done in the name of the company" he explained.
The ingenuity of foreign nationals desirous of having their sale of Goa's real estate pie has scaled new heights, with them being more than able to exploit a loophale in the law to their maximum advantage. Therefore, if over 12,50.000 sq.mts of property in Goa has been purchased by them so far, itwon't be long before they begin drafting a regional plan of their own!
Hi old man,
Nice one, lots of content and a technically correct article.
Thank you from all of us, for your considerable effort in reproducing it.
douglas
May 19th 2007, 11:22 am
#124
Joined: May 2007
Location: Noni the Indian Goan Beach Mulberry
Posts: 8,227
Re: GOA - Buyer Beware!
May 20th 2007, 9:55 am
#125
BE Forum Addict
Joined: Jan 2007
Posts: 1,685
Re: GOA - Buyer Beware!
Must say you are right = the Agreement of Sale do look impressive expecially the ones in full colour!!!. Anyway as it is raining I think I will share with you an article from the Goan Observer by Misha Fernandes. (Hope I can finish typing before the match this afternoon)
Called FOREIGNERS OWN REAL ESTATE FIRMS IN GOA
Foreign Nationals who have to fulfil stringent legal requirements to purchase immovable property in India as well as in Goa, have not only been flouting the regulations, but have been setting up real estate agencies in Goa.
[b]GOAN OBSERVER[b]INVESTIGATIONS HAVE RECENTLY REVEALED THAT A FOREIGN NATIONAL IS RUNNING A REAL ESTATE AGENCY CALLED
Goa Property Sales, which boasts of being "English-owned and run" It is a concern of Steven Wood Estate Agency Pvt.Ltd. and was established nearly two years ago to specifically represent an market new Goan property off-plan (i.e. those that are still under construction) in India and overseas.
[b]STRIKING GOLD[b]
WITH ONE OFFICE IN THE UK AND FOUR OFFICES IN GOA (TWO IN CALANGUTE, ONE IN SIOLIM AND ONE NEWLY ESTABLISHED IN MARGO)[b]
this real estate agency makes its profits from the sale of off-plan properties, those nearling completion and a number of remarketed properties as well. A vist to their website www.goapropertysales.co.uk opens an array of roughly around 250 Apartments terraced houses, semi-detached and free standing villas for sale. Bronze up to £24K Silver £24K to £38K gold £38K to £60K and Platinium above. Some of the places being advertised have been facing the wrath of lopsided development for quite some time now.
Frequently asked Questions No. 16 on the website of the Reserve Bank of India specifies that "a foreigner cannot set up a partnership/proprietorship concern in India"
Annexture 1. Section B. of Master Circular No. 02/2006/07 issued by the RBI lists "Housing and Real Estate business" as one of the activities/items for which Foreign Direct Investment is prohibited. In spite of these restrictions
Goa PropertyServices claims to be a registered real estate agency in India. Having personally invested here in property, this organization has stated on its website that "Goa is a sound investment for a number of reasons. The local people are friendly and helpful, the cost of living is very low, the scenery, beaches and food are excellent and the climate is second to none and the capital growth on our investment has increased by at least 100% in just 18 months.
RBI Rules
Then again Part 11 Section 5.3 of the RBI Master Circular states that "foreign nationals of non-indian origin resident outside India are not permitted to acquire any immovable property in India, unless such property is acquired by way of inheritance from a person who was resident in India.
Nevertheless, many foreign national of non-indian origin have bought immovalble property in India by residing in the country for more than the
stipulated 182 days, and presenting proof of residency. OR BY setting up a limited company then acquiring property in its name HOWEVER AS PER annexure 2 Section 6 of the RBI Master Circular 02/2006-07 only NRI'S ARE ALLOWED TO INVEST 100% IN REAL ESTATE IN India. A senior official of the RBI confirmed this when he told the Goan Observer that foreigners are forbidden from investing in real estate development or setting up real estate companies in India.
BENDING THE LAW
BUT even though foreigners are barred from investing in real estate unless they fulfil the FEMA requirements, many real estate companies - including the English-owned Goa PropertySales - have been blatantly bending the law by helping potential buyers to register "fake companies, which are set up exclusively for circumventing the restrictions imposed by the RBI.
For as per a specification of FEMA "A person resident outside India who has a branch, office or other place of business, (excluding a liaison Office) in India for carrying on his business activity, with requisite approvals wherever necessary, is eligible to acquire immovable property inIndia which is necessary for or incidental to carrying on such activity, provided that all applicable laws, rules, regulations or directions in force are duly complied with.
THE OUTLOOK edition dated January 29th 2007 reports that the typical formual used by foreigners in buying property in the Sate is to float a company with an Indian partner and then register it in Goa. Once this is done, hugh remittances are pumped in for an alleged investment into real estate. And upon buying the property, the company severs all ties with its Indian partners.
NOT SURPRISING - Goa PropertySales also offers a Limited Company Formation service. GOAN OBSERVER received a series of correspondence e-mails between a prospective client, Pete Edwards Jr, and the MD OF THE STEVEN WOOD ESTATE AGENCY PVT.Ltd., Steven Wood, which has been instrumental in highlighting the suspect operations carried out by Goa Property Sales in aiding individuals to acquire property in Goa.
When Edwards (who is the holder of a dual UK and USA CITIZENSHIP) emailed Wood for help to acquire property in Goa without relinquishing his dual citizenship, the latter replied that the best way to do so would be to set up an Indian Limited Company.
In later correspondence Wood evealed to Edwards that the Limited Company Formation Service offered by Goa Property Sales would be charge a
whopping [color="Red"]RS 50,000 to help set up a company in India, or which Rs 25,000 would be refundable once Edwards purchased from them! Moreover, "legal and registration" charges would amount to a separate sum of RS 40,000.Wood did not, however furnish a step by step guide as requested by Edwards, on all the formalities of buying property in Goa - from the formation of an Indian Limited Company to the final sale of property.
The proprietors of Goa Property Sales, on their website, claim to have bought property off-plan in Goa, with themselves NOT residing in India at the time of the purchase. ADV. Cleofato Coutinho speculates that they must have given their power of attorney to a second party to buy the property on their behalf. Replying to whether they had stepped on the FEMA'S TOES BY SETTING UP A BUSINESS IN REAL ESTATE IN GOA he opined, "An agency of this type has no particular status. It just plays the role of the middleman, helping to form an alliance between the actual developer and the client.
[color="Red"]On how a foreign national can acquire property in India Adv.Coutinho said, "Foreigners can buy constructed property in their own name after they have stayed six months in India and submitted some proof of their residency to the authories. However, this procedure has become very tough because hardly any visas are issued to foreigners for a span of six months nowadays. Therefore he continued, "they (foreigners) have two other options.[color="Black"] they can either set up a Limited company in India or enter into a Agreement of Lease of Property, the duration of which cannot cross FIVE YEARS. IN THIS WAY, THEY CAN INCORPORATE INTO A COMPANY AND THEN GO ABOUT ACQUIRING SOME MORE. However, an individual cannot enter into an Agreement of Lease. It has to be done in the name of the company" he explained.
The ingenuity of foreign nationals desirous of having their sale of Goa's real estate pie has scaled new heights, with them being more than able to exploit a loophale in the law to their maximum advantage. Therefore, if over 12,50.000 sq.mts of property in Goa has been purchased by them so far, itwon't be long before they begin drafting a regional plan of their own!
Called FOREIGNERS OWN REAL ESTATE FIRMS IN GOA
Foreign Nationals who have to fulfil stringent legal requirements to purchase immovable property in India as well as in Goa, have not only been flouting the regulations, but have been setting up real estate agencies in Goa.
[b]GOAN OBSERVER[b]INVESTIGATIONS HAVE RECENTLY REVEALED THAT A FOREIGN NATIONAL IS RUNNING A REAL ESTATE AGENCY CALLED
Goa Property Sales, which boasts of being "English-owned and run" It is a concern of Steven Wood Estate Agency Pvt.Ltd. and was established nearly two years ago to specifically represent an market new Goan property off-plan (i.e. those that are still under construction) in India and overseas.
[b]STRIKING GOLD[b]
WITH ONE OFFICE IN THE UK AND FOUR OFFICES IN GOA (TWO IN CALANGUTE, ONE IN SIOLIM AND ONE NEWLY ESTABLISHED IN MARGO)[b]
this real estate agency makes its profits from the sale of off-plan properties, those nearling completion and a number of remarketed properties as well. A vist to their website www.goapropertysales.co.uk opens an array of roughly around 250 Apartments terraced houses, semi-detached and free standing villas for sale. Bronze up to £24K Silver £24K to £38K gold £38K to £60K and Platinium above. Some of the places being advertised have been facing the wrath of lopsided development for quite some time now.
Frequently asked Questions No. 16 on the website of the Reserve Bank of India specifies that "a foreigner cannot set up a partnership/proprietorship concern in India"
Annexture 1. Section B. of Master Circular No. 02/2006/07 issued by the RBI lists "Housing and Real Estate business" as one of the activities/items for which Foreign Direct Investment is prohibited. In spite of these restrictions
Goa PropertyServices claims to be a registered real estate agency in India. Having personally invested here in property, this organization has stated on its website that "Goa is a sound investment for a number of reasons. The local people are friendly and helpful, the cost of living is very low, the scenery, beaches and food are excellent and the climate is second to none and the capital growth on our investment has increased by at least 100% in just 18 months.
RBI Rules
Then again Part 11 Section 5.3 of the RBI Master Circular states that "foreign nationals of non-indian origin resident outside India are not permitted to acquire any immovable property in India, unless such property is acquired by way of inheritance from a person who was resident in India.
Nevertheless, many foreign national of non-indian origin have bought immovalble property in India by residing in the country for more than the
stipulated 182 days, and presenting proof of residency. OR BY setting up a limited company then acquiring property in its name HOWEVER AS PER annexure 2 Section 6 of the RBI Master Circular 02/2006-07 only NRI'S ARE ALLOWED TO INVEST 100% IN REAL ESTATE IN India. A senior official of the RBI confirmed this when he told the Goan Observer that foreigners are forbidden from investing in real estate development or setting up real estate companies in India.
BENDING THE LAW
BUT even though foreigners are barred from investing in real estate unless they fulfil the FEMA requirements, many real estate companies - including the English-owned Goa PropertySales - have been blatantly bending the law by helping potential buyers to register "fake companies, which are set up exclusively for circumventing the restrictions imposed by the RBI.
For as per a specification of FEMA "A person resident outside India who has a branch, office or other place of business, (excluding a liaison Office) in India for carrying on his business activity, with requisite approvals wherever necessary, is eligible to acquire immovable property inIndia which is necessary for or incidental to carrying on such activity, provided that all applicable laws, rules, regulations or directions in force are duly complied with.
THE OUTLOOK edition dated January 29th 2007 reports that the typical formual used by foreigners in buying property in the Sate is to float a company with an Indian partner and then register it in Goa. Once this is done, hugh remittances are pumped in for an alleged investment into real estate. And upon buying the property, the company severs all ties with its Indian partners.
NOT SURPRISING - Goa PropertySales also offers a Limited Company Formation service. GOAN OBSERVER received a series of correspondence e-mails between a prospective client, Pete Edwards Jr, and the MD OF THE STEVEN WOOD ESTATE AGENCY PVT.Ltd., Steven Wood, which has been instrumental in highlighting the suspect operations carried out by Goa Property Sales in aiding individuals to acquire property in Goa.
When Edwards (who is the holder of a dual UK and USA CITIZENSHIP) emailed Wood for help to acquire property in Goa without relinquishing his dual citizenship, the latter replied that the best way to do so would be to set up an Indian Limited Company.
In later correspondence Wood evealed to Edwards that the Limited Company Formation Service offered by Goa Property Sales would be charge a
whopping [color="Red"]RS 50,000 to help set up a company in India, or which Rs 25,000 would be refundable once Edwards purchased from them! Moreover, "legal and registration" charges would amount to a separate sum of RS 40,000.Wood did not, however furnish a step by step guide as requested by Edwards, on all the formalities of buying property in Goa - from the formation of an Indian Limited Company to the final sale of property.
The proprietors of Goa Property Sales, on their website, claim to have bought property off-plan in Goa, with themselves NOT residing in India at the time of the purchase. ADV. Cleofato Coutinho speculates that they must have given their power of attorney to a second party to buy the property on their behalf. Replying to whether they had stepped on the FEMA'S TOES BY SETTING UP A BUSINESS IN REAL ESTATE IN GOA he opined, "An agency of this type has no particular status. It just plays the role of the middleman, helping to form an alliance between the actual developer and the client.
[color="Red"]On how a foreign national can acquire property in India Adv.Coutinho said, "Foreigners can buy constructed property in their own name after they have stayed six months in India and submitted some proof of their residency to the authories. However, this procedure has become very tough because hardly any visas are issued to foreigners for a span of six months nowadays. Therefore he continued, "they (foreigners) have two other options.[color="Black"] they can either set up a Limited company in India or enter into a Agreement of Lease of Property, the duration of which cannot cross FIVE YEARS. IN THIS WAY, THEY CAN INCORPORATE INTO A COMPANY AND THEN GO ABOUT ACQUIRING SOME MORE. However, an individual cannot enter into an Agreement of Lease. It has to be done in the name of the company" he explained.
The ingenuity of foreign nationals desirous of having their sale of Goa's real estate pie has scaled new heights, with them being more than able to exploit a loophale in the law to their maximum advantage. Therefore, if over 12,50.000 sq.mts of property in Goa has been purchased by them so far, itwon't be long before they begin drafting a regional plan of their own!
What an article!!!
Says it all, hopefully this will enlighten some of the doubters.
Remy
May 20th 2007, 10:03 am
#126
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Joined: May 2007
Location: Goa/UK
Posts: 589
Re: GOA - Buyer Beware!
We have just got to adopt Noni's attitude - it is too late for anything else, not doom and gloom but a practicality.
Can you tell me what a deleted member is? (No rude comment please!
May 21st 2007, 4:10 am
#127
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Thread Starter
Joined: Mar 2007
Posts: 863
Re: GOA - Buyer Beware!
Hi all,
Just afew thoughts on entitlement, we all think we are entitled to the money we have, to our lives, to our lifestyles, to live with whom and where we wish and so on.
The common denominators here are, means of exchange, ie money and personal freedom.I know most of you work hard, act responsibly and so on but did it ever occur to you that the main reason the average joe has the money and ability to make these choices is historical. Without the following , most of us would still be scratching around in the dirt and we wouldnt even be aware of places like goa, never mind consider we have the right or wish to be there.
natural selection
colonisation of the third world
slavery
the industrial revolution
fossil fuels, ie coal oil and gas
human rights activists
wars and warriors
homeostasis
co2/ oxygen exchange
insects to pollinate and ensure the above
douglas
Just afew thoughts on entitlement, we all think we are entitled to the money we have, to our lives, to our lifestyles, to live with whom and where we wish and so on.
The common denominators here are, means of exchange, ie money and personal freedom.I know most of you work hard, act responsibly and so on but did it ever occur to you that the main reason the average joe has the money and ability to make these choices is historical. Without the following , most of us would still be scratching around in the dirt and we wouldnt even be aware of places like goa, never mind consider we have the right or wish to be there.
natural selection
colonisation of the third world
slavery
the industrial revolution
fossil fuels, ie coal oil and gas
human rights activists
wars and warriors
homeostasis
co2/ oxygen exchange
insects to pollinate and ensure the above
douglas
May 21st 2007, 4:17 am
#128
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Thread Starter
Joined: Mar 2007
Posts: 863
Re: GOA - Buyer Beware!
P S
Add in the technological revolution, without the jet engine you couldnt get there, couldnt phone home, call a taxi , send this e mail etc
Add in the technological revolution, without the jet engine you couldnt get there, couldnt phone home, call a taxi , send this e mail etc
Jun 5th 2007, 2:01 pm
#129
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Thread Starter
Joined: Mar 2007
Posts: 863
Re: GOA - Buyer Beware!
HI Remy,
I have just been over on india mike and there are two FNs floundering with the concept of selling something they dont own. I covered this in depth during my discussions with cornishboy. Their user names are kinrara and tdk.
If you have time, can you do them a favour and referr them to my posts on this matter. I would like to help, but dont want to get involved directly and have to repeat all this stuff over again on another site.
With thanks
douglas
I have just been over on india mike and there are two FNs floundering with the concept of selling something they dont own. I covered this in depth during my discussions with cornishboy. Their user names are kinrara and tdk.
If you have time, can you do them a favour and referr them to my posts on this matter. I would like to help, but dont want to get involved directly and have to repeat all this stuff over again on another site.
With thanks
douglas
Jun 5th 2007, 4:36 pm
#130
BE Forum Addict
Joined: Jan 2007
Posts: 1,685
Re: GOA - Buyer Beware!
HI Remy,
I have just been over on india mike and there are two FNs floundering with the concept of selling something they dont own. I covered this in depth during my discussions with cornishboy. Their user names are kinrara and tdk.
If you have time, can you do them a favour and referr them to my posts on this matter. I would like to help, but dont want to get involved directly and have to repeat all this stuff over again on another site.
With thanks
douglas
I have just been over on india mike and there are two FNs floundering with the concept of selling something they dont own. I covered this in depth during my discussions with cornishboy. Their user names are kinrara and tdk.
If you have time, can you do them a favour and referr them to my posts on this matter. I would like to help, but dont want to get involved directly and have to repeat all this stuff over again on another site.
With thanks
douglas
Just home from work so just got your post and yes i will be glad to refer them to your posts.
Remy
Jun 5th 2007, 4:59 pm
#131
Forum Regular
Joined: May 2007
Posts: 121
Re: GOA - Buyer Beware!
Remy, Douglas, Tony, Noni
This has been my first experience of a "forum" and it has been hugely enjoyable and educational. I now depart to France for a not so well earned break.
I have listened and learned (I think) and now have to get on with life. you probably won't hear that much of me from now on as I have gleened the info I needed. Whether I will fuel my £12K already shoved into the Goa dream with another is yet to be decided. If the money was the main factor then maybe I would count my losses. As an adventure it seems to be cheap fun. If all goes to rats and the Indian Johnies chuck me out I will spend my last days working for the BNP and change my name to Schmidt to become a proper seen off fascist...... but I hope none of that will happen. I have no doubt that during my holiday in Goa in November somebody will approach me with the greeting "Hey you must be dickylewis, I read your great stuff on BritishExpats, and don't you look like Steve McQueen"
We will see
ps sodding spell checker doesn't work so use fonneticks
Jun 5th 2007, 5:04 pm
#132
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Joined: Jan 2007
Posts: 1,685
Re: GOA - Buyer Beware!
Remy, Douglas, Tony, Noni
This has been my first experience of a "forum" and it has been hugely enjoyable and educational. I now depart to France for a not so well earned break.
I have listened and learned (I think) and now have to get on with life. you probably won't hear that much of me from now on as I have gleened the info I needed. Whether I will fuel my £12K already shoved into the Goa dream with another is yet to be decided. If the money was the main factor then maybe I would count my losses. As an adventure it seems to be cheap fun. If all goes to rats and the Indian Johnies chuck me out I will spend my last days working for the BNP and change my name to Schmidt to become a proper seen off fascist...... but I hope none of that will happen. I have no doubt that during my holiday in Goa in November somebody will approach me with the greeting "Hey you must be dickylewis, I read your great stuff on BritishExpats, and don't you look like Steve McQueen"
We will see
ps sodding spell checker doesn't work so use fonneticks
This has been my first experience of a "forum" and it has been hugely enjoyable and educational. I now depart to France for a not so well earned break.
I have listened and learned (I think) and now have to get on with life. you probably won't hear that much of me from now on as I have gleened the info I needed. Whether I will fuel my £12K already shoved into the Goa dream with another is yet to be decided. If the money was the main factor then maybe I would count my losses. As an adventure it seems to be cheap fun. If all goes to rats and the Indian Johnies chuck me out I will spend my last days working for the BNP and change my name to Schmidt to become a proper seen off fascist...... but I hope none of that will happen. I have no doubt that during my holiday in Goa in November somebody will approach me with the greeting "Hey you must be dickylewis, I read your great stuff on BritishExpats, and don't you look like Steve McQueen"
We will see
ps sodding spell checker doesn't work so use fonneticks
You cant jump ship now after all we have been through.
Anyway i will hunt you down in early Dec at the Renton.
Did you not know that this forum is like the Eagles song Hotel California....."you can check out anytime you like but you can never leave..."
Kind Regards,
Remy
Jun 5th 2007, 5:08 pm
#133
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Thread Starter
Joined: Mar 2007
Posts: 863
Re: GOA - Buyer Beware!
Remy, Douglas, Tony, Noni
This has been my first experience of a "forum" and it has been hugely enjoyable and educational. I now depart to France for a not so well earned break.
I have listened and learned (I think) and now have to get on with life. you probably won't hear that much of me from now on as I have gleened the info I needed. Whether I will fuel my £12K already shoved into the Goa dream with another is yet to be decided. If the money was the main factor then maybe I would count my losses. As an adventure it seems to be cheap fun. If all goes to rats and the Indian Johnies chuck me out I will spend my last days working for the BNP and change my name to Schmidt to become a proper seen off fascist...... but I hope none of that will happen. I have no doubt that during my holiday in Goa in November somebody will approach me with the greeting "Hey you must be dickylewis, I read your great stuff on BritishExpats, and don't you look like Steve McQueen"
We will see
ps sodding spell checker doesn't work so use fonneticks
This has been my first experience of a "forum" and it has been hugely enjoyable and educational. I now depart to France for a not so well earned break.
I have listened and learned (I think) and now have to get on with life. you probably won't hear that much of me from now on as I have gleened the info I needed. Whether I will fuel my £12K already shoved into the Goa dream with another is yet to be decided. If the money was the main factor then maybe I would count my losses. As an adventure it seems to be cheap fun. If all goes to rats and the Indian Johnies chuck me out I will spend my last days working for the BNP and change my name to Schmidt to become a proper seen off fascist...... but I hope none of that will happen. I have no doubt that during my holiday in Goa in November somebody will approach me with the greeting "Hey you must be dickylewis, I read your great stuff on BritishExpats, and don't you look like Steve McQueen"
We will see
ps sodding spell checker doesn't work so use fonneticks
But dicky, if you go to france just like that, we wont have anyone to play with.
Why dont you ask mrs DL if we can come too?
douglas
Jun 5th 2007, 5:11 pm
#134
Forum Regular
Joined: May 2007
Posts: 121
Re: GOA - Buyer Beware!
Yup
I think you bastards have got me. I will be clutching a copy of the Times under my left arm but if this not conclusive; look for the hairy middle aged Welsh bloke wearing the pink mini skirt accompanied by the very confused wife, who, coincidentalilty, does not look like Steve McQueen either.
ps I am not deserting as this forum is like internet heroin
I think you bastards have got me. I will be clutching a copy of the Times under my left arm but if this not conclusive; look for the hairy middle aged Welsh bloke wearing the pink mini skirt accompanied by the very confused wife, who, coincidentalilty, does not look like Steve McQueen either.
ps I am not deserting as this forum is like internet heroin
Jun 5th 2007, 5:24 pm
#135
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Joined: Mar 2007
Posts: 863
Re: GOA - Buyer Beware!
Bloody Hell Dicky,
You cant jump ship now after all we have been through.
Anyway i will hunt you down in early Dec at the Renton.
Did you not know that this forum is like the Eagles song Hotel California....."you can check out anytime you like but you can never leave..."
Kind Regards,
Remy
You cant jump ship now after all we have been through.
Anyway i will hunt you down in early Dec at the Renton.
Did you not know that this forum is like the Eagles song Hotel California....."you can check out anytime you like but you can never leave..."
Kind Regards,
Remy
I think it must be my fault. It must be mrs DL thats barred him, because we are a bad influence.
Douglas is gutted too, but i think he will be back, maybe he will have a little peep sometimes to see how we are geting on.
douglas