Department of Enforcement issues serves show-cause notices

The Directorate of Enforcement has served show-cause notices to foreigners who have purchased properties in Goa allegedly in violation of the Foreign Exchange Management Act (FEMA).

The notices, issued directly to the parties and also through the Goa government, has asked why their properties involved in the contravention of the FEMA should not be confiscated to the Central government account in terms of section 13 (2) of FEMA 1999.

The state government in their report presented on the floor of the house cited 392 such cases. The committee, prima facie, had found violations in 298 cases, which were referred to Directorate of Enforcement and Reserve Bank of India.

The only major case in this batch is that of a Russian company called True Axis, which purchased about 20,000 square metres of agriculture/forest land in Morjim. Foreigners cannot purchase agricultural/forest land in India. True Axis also purchased the property with money received into their personal account, which is again illegal according to RBI rules. The company has Indian directors but these are dummies, the official said.

The NRI commissioner Mr Eduardo Faleiro, reacting to the controversy leading to the state government enacting a new Act making it difficult for foreigners to buy land in the state said that Goa had become known globally as a holiday resort and faced the same problems that arise in holiday resorts elsewhere in developing countries. He said, One such problem is the large scale purchase of property by foreigners and the ban of purchase of property by foreigners in Goa is justified. He however felt that this ban should not be extended to persons of Goan origin whatever their nationality and added that during his recent visit to Mozambique he found several persons of Goan origin who held different nationalities but wanted to return to Goa.

Differing on the issue, the PWD Minister, Mr Churchill Alemao, said recently that he would in no way support the ban on sale of land to foreigners saying that during his recent visit to the United Kingdom he was confronted by the media on the issue, who attacked him by saying that in that case they should also take back all the Goans living in the UK.

The Goa Assembly has unanimously passed a Bill amending the Registration Act, 1908 (16 of 1908) to prohibit foreigners from buying land in the State. An amendment to Section 22 would empower registering officers to not only examine documents but also seek any evidence and papers they deem relevant for registration. They are empowered to refuse registration of a document.