Foreigners get the Goa jitters

Foreigners get the Goa jitters
Sell Off Homes, High Commission Worried
Preetu Nair | TNN

Calangute: Foreign nationals who had ‘legally’ invested in property in Goa are placing these on sale, worried over the growing resentment against foreigners purchasing property in Goa.
Take the case of Stephanie (57) and Richard Parker (59) from West Coast, UK. Highly paid executives in an American firm, this couple decided to make Goa their post-retirement home. In 2000, they purchased an old bungalow in Candolim for about Rs 20 lakh and spent another Rs 30 lakh fashioning it into their dream house. Eight years later, they are anxious to dispose of the property and return to the UK.
“We love Goa and connect with the people here. That’s the reason why, after seeking legal advice, we sold our ancestral property in UK and purchased a home in Goa. But now we are eager to sell our house as we are deeply agonized and alarmed by the way we are being targeted, though we have not violated any law,” said Richard.
The Parkers don’t figure in the 400-odd names that makes up the list of the Directorate of Enforcement of those who have been served show-cause notices for having purchased properties allegedly in violation of the Foreign Exchange Management Act (FEMA), 1999.
Russians and the Britishers top the list of foreign nationals who have invested in properties in Goa, mostly by forming companies or by complying with the mandatory 180 days residence in the country.
Yet, wary of future trouble, they are eager to sell off the same property. “We wanted to settle in Goa because with the £3,000 pension we would have been able to live a more comfortable life in Goa than in the UK. But it’s better to be at home than in a place where you are worried about either your property being taken away or your visa being denied,” added Richard.
“There is a class of well-educated European professionals who purchased property in Goa but now there is a sense of insecurity amongst such settlers, which is increasingly encouraging them to exit from Goa with their investments,” said advocate Vikram Varma.
But law minister Dayanand Narvekar doesn’t think that those who have complied with all the formalities should have reason to worry. Said Narvekar, “I don’t think foreigners who have purchased property legally in Goa in compliance of FEMA rules and with money coming through proper RBI channels, should have any problems.”
The Parkers, however, are not the only Britishers eager to liquidate their property. Harry (55) and Caroline (48) Smith, who put in Rs 25 lakhs to purchase a bungalow three years back and then spent another Rs 25 lakh on renovation, have put their property on sale. “The market value of the house is Rs 80 lakhs plus. But even if we get the amount we had invested in the house, we are more than willing to sell,” added the Smiths.

Government’s tough stance worries foreigners

Calangute: Trouble for foreigners owning property in Goa began two years ago with the launch of a movement against the sale of land to foreigners. But it is the state government’s decision not to sell land to foreigners that has many worried.
“An increasing number of Britishers in the coastal belt want to sell off their properties at a decent price or start a company and transfer the house in the company’s name,” admitted a real estate broker from the North Goa coastal belt.
This was confirmed by Calangute sarpanch Joseph Sequeira, who said, “The foriegners are feeling helpless and troubled with the stand taken by the state government. There are an increasing number of foreigners who are now coming to the panchayat to register a company and then transfer their house in the name of the company. Under FEMA a foreign owned company can purchase house.”
The British Deputy High Commission in Mumbai is concerned about the problems their citizens are having in the state.
“We would be very concerned if there were to be any question of property acquired legally by British citizens being expropriated through the retrospective application of any new legislation. We have raised our concerns with the Indian authorities at both the state and national level and will continue to do so,” said the High Commission spokesperson.
There is another problem too. A large number of Britishers are being cheated by developers promoting their available apartments on the net. British National Claire Solomon (45) saw an advertisement on the internet, contacted the developer, entered into an agreement and paid an advance amount of about Rs 10 lakh to purchase a one bedroom flat in Calangute. Everything appeared above board until she came to Goa to register the sale deed and take possession. “It is then that I was told that I can’t possess a house in Goa as I don’t fulfill FEMA regulations. My money is lost and I feel cheated,” said Claire.
Explaining this advocate Raju Poulekar said, “When selling property to foreigners, builders don’t explain the legality of buying such property and often the foreigners fall into a trap.”

(Few names of UK nationals changed to protect identity)

June 27, 2008, The Times of India, Goa edition