British National approach court alleging that they are victims of "red tapism"

PANJIM: Two couples, who are British nationals, working in India, had approached the High Court of Bombay at Goa alleging that they were victims of government "red tapism", as they are not being allowed to purchase property in Goa, despite completing 182 days in the country.

In a drastic shift from the recent past, when foreigners could easily grab a piece of Goa's land, now a foreigner wanting to purchase property in the state, has to go through a longer and even stringent procedure. This is due to the Goa government's circular on August 29, 2006 informing about the government decision for effectual implementation of the provisions of Foreign Exchange Management Act, 1999, regarding acquisition of property in Goa by foreign nationals. The circular stated:

(1) No sale deeds of foreigners will be registered unless I and XV form is inspected for orchard/ agricultural land

(2) The stay of foreigners will be verified by Home department and they have to produce NOC from Home department.

This is what Clive Pegg and his wife Norma, both British nationals, who had come to India in 2002, upon Clive's employment as MD in a company in Hyderabad realized. On April 1, 2006, they obtained status of "person resident in India" as defined in the FEMA, as they stayed in India for more than 182 days during the financial year 2005-2006.

On October 18, 2006, the couple executed a deed of sale of a plot and bungalow in Benaulim, but the sub-registrar of Salcette refused to accept the sale on the ground that the couple are foreign nationals. They applied to Home department for NOC to complete the purchase on January 25, 2007 but without any avail, even as the state government kept the registration of the document pending for want of NOC from Home department. And Home department, even after 10 months has neither issued the NOC or rejected their application.

Another British couple, Anthony and Carol Horwood, who had come to India in September 21, 2006 and stayed in the country till May 18, 2007 under valid residential permits purchased property in Parra and is facing the same fate as the Peggs.

Tired of waiting for the NOC from the Home department, they approached the Court challenging the decision of the Goa government, which is in circular on August 26, 2006, alleging that it is "ultra vires" the FEMA, unconstitutional or arbitrary, illegal, perverse and without any authority of law.

It was further submitted by the two petitioners that they are foreign nationals who qualify as a person resident in India within the meaning of the expression as defined in section 2 (u) of FEMA and are not barred from acquiring immovable property in the country.

Though the Division bench of Justice RMS Khandeparkar and Justice RS Mohite refused to entertain the petition, they have asked the Home department to dispose off the matter within 3 months. Though the Court disposed of the petition, they have given liberty to the petitioners to approach the Court again.