Foreign owned property in Goa, (part Two)

Nick-H

The rupee is much more used to being smashed against a rock by the riverside laundry women than most of the world's other currencies....

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goangoangone

Money laundering is all about turning your money into anything else and back into currency. The favourite medium is a cash business but launderers will pay huge premiums to "clean" their funds. All they're doing is getting their money out of the rouble, or whatever, into something which they can later sell for "real" money. This is not necessarily the rupee if they sell on to another national. Get it?

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crvlvr

I have worked in banking and am well aware of money laundering. I have also watched the movie Scarface a few time

The point I am trying to make is at some point to get the money back, these mafia investors will have to sell the property, in rupees.. Then what? what will they do with the rupees, as it is not freely convertible as say the dollar? just who will they "sell" these rupees to? And, if they sell the property in a foreign currency, who will buy it? Given that foreigners are not allowed to purchase prorty in India in the first place..

There seems to be much better alternatives to laundering money than buying property in India. unless ther money laundering is how Nick has explained it.

capt_mahajan

crvlvr, you can change, in the black market in India, rupees to almost any currency in the world, and send the money there.

And people have been selling property in India and accepting part of the proceeds in cash abroad for years.

GoanCanuck

Yes indeed. Know of many people of Indian origin who have sold land in India and repatriated the money through non-official channels. This happens on a daily basis.

crvlvr

capt and goancanuck, yes I am aware of the black money and hawala channels. It just seems odd the Russian mafia would buy land in India, of all places, for money laundering purposes as it has been explained by goagoagone. It just does not make sense to me.

Apparently, even the goa police is wondering why the Russian mafia may be buying land in Goa, or whether they have even purchased any land, as this article tries to explain.. http://in.news.yahoo.com/060529/48/64n7c.html

capt_mahajan

Not an expert, but I would think money laundering prefers large countries where property is being used to launder money.

More anonymity, I guess. If you transact a couple of million dollars of property in Papua New Guinea or somesuch you will be noticed more easily.

snowcrab

India does not have those signs saying that the death penalty is "mandatory" for drug offences in the airports. Sure there is a death penalty on the books but it's not mandatory and Indian airports are very busy so I'm sure it's a bit easier to get mules to agree to carry in and out of India rather than Malaysia for instance. Especially since the Russians are also trying for controling shares in Indian airlines.

Also there are many container ships leaving Indian ports, it is perfectly situated to ship anywhere in the world with much less suspicion than a cargo arriving from China or Russia for instance. And there are age old smuggling routes from the most prolific drug producing areas in Asia right into India. Bombay could turn into the new Bangkok in a heartbeat.

Russia has one of the largest criminal communities ever since they got driven out of Afghanistan and their soldiers became unemployed. Now they probably are big and wealthy enough to try and set up a base to move stuff around the world, a difficult business from landlocked and frozen Russia. Indians are well advised to be wary of that particular element of Russian society. Plus, it's darn cold in Russia in the winter, they probably want to get away from that weather as much as anyone else. Why not buy a bunch of land and an airline or two to get to it? I think the utility of the land itself would be more important than trying to turn it back into an exportable currency.

crvlvr

Snowcrabs explanation makes much more sense. I think the perception that the Indian govt can be bought off when needed also, might have been a contributing factor.

goangoangone

Another English applying for an extension to a 1 year x visa has been told to leave when it expires in December. The letter told him that they do not want people retiring here, and to retire in your own country.
Looks like no more Residential Permits.

cyberhippie

I've heard stories that the Russian Mafia is running a large part of Goa's prostitution racket as well!!

GoanCanuck

Pretty much. You should post this in the British Expats forum as well. There are many on that site who still are dreaming of retiring in Goa.

goangoangone

From Herald. I couldn't find it online, so as I have a bit of time this morning I've copied it.

Foreigners prefer land in Salcete.

Margao,Oct 31-Salcete tops the talukas in South Goa where foreign nationals have purchased land in recent times,even as the district Magistrate has directed the sub-registrars in the South Goa district to be vigilant about foreigners, both individuals and companies, intending to register deeds.

Latest information revealed that around 37 foreigners, mostly from the UK, have bought vast lands in Salcete taluka. Canacona taluka comes second with around 7-8 cases. The hinterland talukas of Sanguem and Quepem have two cases each, but both of companies owned by foreign nationals.

Meanwhile, at a meeting called by the district Magistrate, the Sub-Registrars were told in clear terms not to register any sale deeds even in cases where a foreign national is a partner.

The Sub-Registrars were further told not to register a company owned by a foreign national without the mandatory certificate from the Home department.

Sources said the registration officials were directed to seek details under which rule the foreigners had formed a company.

capt_mahajan

If this is true, and if I was a foreigner, I wouldn't buy at all till there is clarity. Maybe in a few months, or years.

charles.crow

India is one of the most interesting places in the world. I don't understand this obsession with living in Goa, working in Goa, finding solace, satisfaction and the ultimate reality in Goa. It's just a goddamned beach, and yes, the beer is cheaper than you pay in Florida. There's a lot more to India than just Goa. I know Matt Damon filmed a movie there, so Goa is an irrestible magnet. If you have an appreciation of India, visit Bhopal, Indore, buzz-killing Bangalore, Mussoorie, Shimla, Ajmer...the map is full. Wander into 18th century ruins built by deputies of Shah Jahan which are now overrun by jungle. But if you're simply obsessed with Goa, just go to Florida. Sit on the beach and read John Grisham novels.

Incidentally, there's a reason my acquaintaces call me "The World's Biggest Asshole."