TOURISTS UPSET AS GOA BEGINS TO ACT OVER FOREIGNER LAND DEALS By Pamela D'Mello
Panaji: The Goa home department says it has begun the process of examining some 200 land sale deeds purchased by foreign nationals in North Goa for FEMA (Foreign Exchange Management Act) violations. FEMA provisions, effective from the year 2000, permit foreigners with a long term business visa and resident for 182 days in a year, to purchase immovable property in India. Last month a Nationalist Congress youth president blew the whistle on an operation that was circumventing the law, allowing many on tourist visas to purchase and register properties in this popular tourist resort state. Reacting with uncharacteristic speed, the administration indicated it would get tough on these land transfers, routing all further registrations through the home department. An appraisal of post 2000 registrations could result in punitive action, Goa chief secretary J P Singh told this newspaper. The government's move has already begun to have ripples in the real estate and hospitality industry, besides leading to considerable worry and anger among Western settlers here. Some of their ire is directed at real estate firms, agents, chartered accountants and lawyers who kept the industry buoyant by misinterpreting the law and misguiding them. "Why do Goan real estate firms advertise their properties at trade fairs abroad?", questioned one buyer. Though the state government is currently assessing the records, there are indications it may may face legal hurdles in any retrospective action. Chief Secretary Singh said the government would initially collect the data on violations. Some 445 cases in North Goa have to be examined for violations. Meanwhile corollary statements from the government against foreign tourists running micro-businesses in restaurants and bakeries has evoked mixed reactions. Eating-out and restaurants is a large element of the tourism package here. Investments from Mumbai and Delhi now account for an estimated 60% in this market share, pushing locals down to a 30% share in an intensely competitive play-field. Western involvement is pegged by estimates at 10%. Local players in the industry though are divided over adopting a protectionist policy. "The government's attitude has been ambivalent. After Westerners have been here several years, enhancing the tourist product, been granted permissions and licenses from the tourism department, it's unfair to throw the law book at them half way through", said one hotelier. [ENDS] LINK: FEMA http://www.laws4india.com/nrilaws/ecm.asp Pamela D'Mello is The Asian Age's special correspondent in Goa. She can be contacted at [EMAIL PROTECTED]