Shakeout in Paradise

..........................................

Something has changed over the past year,
the hitherto welcoming atmosphere in Goa
had frosted over.

.........................................

By Pamela D'Mello
[EMAIL PROTECTED]
The Asian Age

GOA: It was peak season at the modest English and continental
cuisine eatery Welma Hicks operated in Calangute. Not the
best time for a summons to police headquarters. "A letter from
a home office undersecretary simply said I'd been refused an
extension on my business visa, since I was running a petty
business of no value. I had 15 days to leave, though my visa
had three months to run," says Ms. Hicks.

Hicks took a hurried flight back to Birmingham; returned with
a one year business visa, but was dismayed she had to exit
every six months.

"How do I run a business if I have to leave the country every
six months?" she asks. In 2004, things had been a lot easier.
Then, a two year business visa had seemed effortless; a one
year extension granted at the Panjim Foreigners Registration
Office in February 2006 without demur.

Hicks (name changed) is among scores of others being asked to
leave for overstaying, or running businesses without proper
permissions and visas. Authorities are no longer willing to
overlook irregularities -- a sea change from an ultra-liberal
approach that marked the region's long association with its
Western visitors.

Something had changed over the past year, the hitherto
welcoming atmosphere in Goa had frosted over.

Ask around and foreigners say coveted five year X-visas that
grant residency -- once liberally handed over -- have all but
dried up; long term residency is actively discouraged, even
tourist visas are being shortened, and those seeking
extensions or renewals have to return to their country of
origin to re-apply.

Goa has had a long tryst with visitors from the West ---
hippy peaceniks, counter-culture backpackers, adventure
travellers, nirvana seekers, ravers, package holidayers,
middle-class pensioners -- quite a few opting to settle down
or return repeatedly to sample its many charms.

Some 2.5 million tourists, a third of them foreigners, have
made Goa a tourism hot-spot. Picking up a holiday or winter
home is quite often the next agenda of the more ambitious or
the more smitten.

The exchange rate takes foreign pensions a longer way in Goa
-- affording a lifestyle not possible back home. Add a
semi-Westernised mileau, a global meeting place six months of
the year, an array of restaurants or pubs and karaoke bars and
the upside of a semi-permanent life here outweigh the
negatives.

The rush to buy real estate that could be got as easily in
Spain, Turkey, Bulgaria or Greece seems to have monetised a
once-easy relationship. Properties in Goa are on every
international global investment listing. All the signs say
local inhabitants are no longer sure if they should be
flattered, tolerant or cautious.

"There's been an anti-foreigner campaign in the local media
for the past two years. There's a tendency to blame us for
all of Goa's problems," rues Briton Jan Bostock, owner of a
tourism multi-service company he operates in Goa with his
Indian wife Arti.

Most Westerners, he says, stay on and blend with the culture,
often restoring heritage houses. "We want to be a part of
Goa, to enjoy its food and culture. We are not trying to
change Goa into anything else, we are here because we love it
here. But foreigners are being scapegoated, because Goans who
resent the invasion of Mumbai and Delhi speculators cannot
really complain about them, and they are the ones investing
more heavily in land," says Bostock.

"Everyone wants a piece of the Goan pie. Only the other day a
Delhi party bought a property for Rs 55 lakhs (Rs 5.5
million), held it for a few days and sold it to a foreign
buyer for Rs 1.50 crore", says tourism watcher and campaigner
Roland Martins.

With land prices appreciating at 15-20% annually, speculation
is a viable option. Local politicians and neighbourhood land
Mafias are very much in on the deals. As an easily
identifiable and unrepresented group, foreigners feel they
are taking the fall, acting as a red herring.

Cases are piling up -- authorities doing a check on 482 cases
of foreigner property purchases for FEMA (Foreign Exchange
Management Act 2000) violations, are simultaneously checking
visa categories for overstays and occupation. Some 26 were
asked to leave in 2006, 16 in 2007.

Some 311 of the 482 property registrations are British, 26
Italian and 2 Russian. The lid blew off the purchases when
they went from innocuous apartment or villa and home
purchases to larger swathes of land. Several Britons,
Americans, Germans and Italians have registered plots above
25,000 sq m , a couple of Russian buyers using local partners
to pick up out-of-bounds agriculture and plantation plots.

Land and built-up prices have shot up seven fold --
apartments and homes out of the reach of middle class locals
at Rs 16 lakhs for modest two bedroom apartments, contributing
to growing xenophobia.

Legislator Agnel Fernandes, representing the coastal
Calangute constituency, has repeatedly brought to the Goa
Assembly notice that foreigners were taking over even micro
tourism services, from care-taking, rentals, water sports,
running restaurants and pubs -- and thus "marginalising
locals".

"What seems to be going on is a process of regulation and
streamlining, to set new procedures," says Roland Martins, a
contrast to the anything-goes approach.

Goa police DIG Ujjwal Mishra concurs, and told The Asian Age:
"The earlier laid-back attitude has gone. We can no longer be
lenient to over-stayers. We've had to tighten things".
Security concerns and media focus on tourism's negatives,
though often exaggerated, he claims, have forced their hand.

"The tightened visa regime is quite clearly to restrict
foreign nationals from meeting residency criteria (182 days)
under the Foreign Exchange Management Act that permits
business, professional or employment categories of foreigners
to purchase and hold immoveable property in India," says a
local lawyer.

FEMA's provisions have been stretched to their maximum -- to
their outer limits in Goa, with legal interpretations
violating the spirit of the legislation..

For the moment though, the Goa government is sending out
clear signals.

"I'm afraid we can't let people retire here. India's visa
regime at the moment has no "right to abode" or "right to
settle permanently" in India without acquiring Indian
citizenship. There is no such category, and all visas go upto
maximum five years," says Goa chief secretary J P Singh.

Central Home Ministry directions he received in 2006 have
specifically asked states to stop registrars from registering
property sale deeds by all non-Indians, unless routed through
the Reserve Bank of India and the state home department

"Instructions are that only foreigners on a business visa can
buy and register property in India, and business visas are
not freely given out," says Singh.

FEMA's ambiguous wording have left the act open to legal
interpretation, under which thousands of foreigners on
tourist and entry visas continue to pay for land, old houses,
villas and apartments in Goa, several burning their fingers
in the process. Meanwhile, despite the uncertainties of an
Enforcement Directorate investigation that's delving deeper
upto 1999 cases and threats of confiscations, Goa's robust if
overheated property market hasn't skipped a beat.

Buyers are being offered an array of options from five year
rolling leases (on freehold payment) with promissory notes or
shares in the project; an agreement to sell or buy deeds with
ownership rights and final registration on qualification.
Others, including a couple of British-owned estate sellers
operating in Goa, are registering fake companies for tourists
to enable property purchase.

With many, these pass muster.

"I don't actually care about freehold ownership. I just want
to live there a few months of the year," says a 48 year old
Welshman, on an expat discussion forum focussed on staying
overseas. With homes in Britain coming at over 300,000 pound
sterling, the 35,000 to 65,000 pounds that fetch premium one
storey villa at current prices in Goa, are still a steal.

But there could be a sting in the tail of this unusual story.
"Much of these are illegal and a circumvention of the law,"
says chief secretary Singh. (ends)

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Feedback: Pamela D'Mello Cell 9850 461649
http://pameladmello.goa-india.org

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