Britons get ED notice on Goa property

Britons get ED notice on Goa property
Asked To Explain Why Govt Should Not Confiscate It
Preetu Nair | TNN

Panaji: Acting against foreigners “illegally” purchasing property in Goa, the Enforcement Directorate has slapped show a cause notice on two British nationals seeking to know why their property in Corona, North Goa, should not be confiscated.
The notice was based on a complaint filed by the assistant director of DoE under section 16 (3) of FEMA as the duo had failed to establish their status as “persons resident in India” and yet had purchased and sold property in India without obtaining RBI permission.
The notice, issued by K Nageshwar Rao, special director, DoE, on December 11, 2008, asks “why the property which is involved in the contravention of the provisions of Foreign Exchange Management Act (1999) should not be confiscated to the Central government account”.
This is the first time a foreign national who had “illegally” invested in property in Goa has been issued a show cause notice for confiscation of the property by the ED. The state government has sent a list of 482 transactions by foreigners for the ED to investigate.
TOI had reported in June that the ED had come across reports that foreigners have purchased properties in excess of 100-acres in Goa and that of the 400 cases of FEMA violations in Goa referred to RBI, 74 had been forwarded to the ED. Earlier in May, the ED had served notices to foreigners asking them to appear for hearings.
In his complaint, the ED assistant director said he had received information from RBI about the purchase of immovable and agricultural property by foreign nationals, Nicholas Joseph Papa and his friend Michael Dennis Cooper, who “on tourist visa had purchased immovable properties in Goa in contravention of FEMA regulations”.
The complaint states that Nicholas declared that he had stayed in India for a period of more than 182 days, had residential permit visas and funds from abroad to purchase an old house of about 1,125 sq m in 2001 at Aldona, which he sold in 2006. In September 2006, he purchased another property of 928 sq m at Corona. “He had not taken RBI permission to purchase and sell the said properties,” the complaint notes. The value of the land is estimated at Rs 77, 25,000.
The complaint also notes that documents forwarded by the Britishers, including authenticated copies of their passports, visas, certificate of registration, residential permits describe the duo as “retired” and the purpose of their residing in India as “holiday”. However, they had purchased agricultural land in Aldona and declared themselves as “persons resident in India” in the sale deed dated September 7, 2006.
The complaint says that the Britishers had falsely declared themselves as persons “resident in India” and so are “prohibited from the acquisition of any immovable property in the form of agriculture or plantation farm house”.

January 7, 2009, The Times of India, Goa edition