Foreign owned property in Goa, (part Two)

yes, now for something completely different - a (slightly) positive story see today's oHeraldo
(Actually there was a better write up in GT but I can't find an online version)

AndyD 8-)#

Hi Andy,

I got the GT version e-mailed to me, will try and post it here...if i can find out how!!!

The particular petitions in question weren't granted so other than directing the authorities to deal with applications within 3 months rather than sitting on them indefinitely, it doesn't sound particularly positive.

I believe I read somewhere else that these individuals were on employment visas and were therefore eligible to purchase. Is that the case, or am I just remembering incorrectly?

How can the guy use the bank if he doesn't have a bank account in India. I've taken eighteen thousand dollars in travellers cheques through Sri Lankan customs when I was going to buy some land, and ten thousand dollars another time when I would have taken more if I hadn't already set up the Sri Lankan bank account.

Don't presume everybody has the same arrangements you do.

As for it being laundered money I doubt it. You leave the same information with the bank you buy the travellers cheques from that you would if you opened an account.

Come to India, open an account and transfer the money? In that order.

Unless he was ineligible to open an account, in which case he would probably be ineligible to buy property. Unless, of course, he was smuggling in money for other stuff.

Hi Stephen,
When we purchased our Apartment we were given details from the Developer/and their Bank to pay the money via Money Transfer via a UK Bank to HDFC in Goa for the credit of the Developer - we have all the paper work needed and produced it for the Directorate of Enforcement. This guy could have done the same.

There are those who just don't like banks.

Some of them may even be quite wealthy, keeping large amounts of cash hidden away.

Actually, I remember a neighbour in UK telling me that he paid cash for his house --- he went to the bank, withdrew it and took a suitcase full of money to the seller. Why? I haven't a clue! Maybe the seller was one of these people that wouldn't have a bank account!

So legitamate large transactions in cash are possible, of course, but I share the captain's view. Anyone entitled to make a transaction of that size in India would have few problems opening a bank account.

The big thing is... he could have declared it.

And yes, it does say, on the immigration form you are given on the plane, how much you may bring in undeclared. Anyway, it would be his responsibility to check the legality of moving his currency over borders; ignorance is not an excuse.

bit OT to the FN issue...however let me tell you that a majority of property transactions done in India are not through bank..either it will be hard cash OR just a token amount through bank...

Only very big real estate companies might do the entire transaction in white...

Sure the guy could have done the same, but that doesn't mean he knew he should or could have, or that it appeared the most logical solution to him.

In fact opening an account with travellers cheques can be an absolute pain. When I first opened an account in Lanka they said that I would have to send the money back to Saudi and get them to transfer it. It was only because the bank the travellers cheques had been issued from was their sister bank, that I had the receipt in front of me, and that my lawyer who vouched for me had had an account with the bank since it was set up and was well known by management that I was allowed to do so. And the ritual of signing the cheques in triplicate and waiting while each one was inspected and counter-signed was a nightmare.

The same nightmare a three years later when I wanted to deposit $10,000 and open a dollar account (I was, and still am, expecting the Lankan rupee to collapse). That took a call from my lawyer to one of the top managers.

There is of course one very good reason why you should declare large sums of money when you come in. So you don't have problems when you leave. But we have no evidence here either way as to whether the guy was doing something shady, or was simply very unfortunate.

anyway..... he broke the law by not declaring.... so not a question of being unfortunate or not.....

if he was bringing in such a huge sum, he must have already decided on a property and looked into all avenues of money transfer.....

You dont even need to open a bank account. You transfer funds from your own bank account to the builder/sellers bank account and therefore can clearly show the transaction. Also note it is it is important that you comply with FEMA. Transactions should be transparent and through clear banking channels to avoid any complications, or you may have your purchase deemed illegal and risk confiscation and or heavy fine.

Regards,
Remy

Hi
If this FN had brought the money into Goa to purchase property he really should have transferred the money through the banking system,you don't need to open a bank account to do this.
As £60K was in travellers cheques, I wonder if he can reclaim the money in the UK. Although again, allegedly he had not signed the travellers cheques and that again is a wrong move.

We have got to remember here that we are talking about a FN not an Indian.

That's the whole point, the cheques were unsigned. This makes them "cash".

You have just confirmed what I thought. Clients used to have to sign travellers cheques in front of us, when we issued then, but now the Banks tell people to sign them asap.
So we are all allowed to take in about £5K each without declaring it is that right?

As I understand it, the regulations allow one to take in - without declaration - up to 5000 USD (or equivalent) in currency, and a similar amount in traveller's cheques; the total is slightly less than 5000 GBP.