Foreigners in Goa Stuck with Properties Amidst FEMA Violations and Government Bans
Investigation and Bans
The state government of Goa has barred foreigners from selling their properties in the region, following allegations of Foreign Exchange Management Act (FEMA) violations. This move has left many foreign investors in a state of limbo, unable to offload their assets.
Applications for Sale Rejected
Recently, notary services and the state registrar department received two applications from UK and Russian nationals, respectively, seeking to sell their properties in Goa. The applicants claimed their purchases were legitimate and hence, should be allowed to sell. However, these applications were forwarded to the debt management unit for further review.
Background of the Issue
Goa has been grappling with the issue of approximately 480 properties purchased by foreigners, with the number increasing monthly. Authorities discovered prima facie evidence of FEMA violations and loopholes in Goa's property registration system. The Anupam Kishore committee, constituted by the state government, identified 480 such cases, with 298 referred to the directorate of enforcement for investigation.
Investigation into Sale Deeds
The directorate of enforcement is scrutinizing all sale deeds, including those involving Indian companies with foreign directors. This intensified scrutiny has brought transactions to a standstill.
Investor Concerns
A Russian national, whose Siolim property is under question, expressed frustration: "After the issue has cropped up, we are not even allowed to move an inch. Our investment is blocked here." The individual, who wished to remain anonymous, had purchased an ancestral house through an Indian company but is now denied even basic repairs.
Similar Plight for UK Nationals
UK nationals, lured by advertisements in their home country, feel deceived. A south Goa-based foreign couple, also choosing to remain anonymous, has written to the registration department seeking permission to sell their property amidst the probe.
Official Stance
Swapnil Naik, additional collector and member of the Anupam Kishore committee, questioned how properties with disputed sale deeds could be legally transferred to new parties. However, he clarified that properties not under question and legally purchased can be sold with proper permissions.
Directorate of Enforcement's Directive
The directorate of enforcement has specifically instructed the state government to halt further transactions for seven properties in north Goa, currently under investigation.
Proposal for Enhanced Regulatory Oversight
The registration department suggests the state government should appoint an authority to thoroughly vet applications from foreign buyers, ensuring compliance with visa requirements and RBI approval.