NRI sent home $39b in 9 months – MMS orders restrictions

How stupid MMS led government could be illustrated here – foreigners are not allowed to buy properties in India easily and freely?

One could not hear anything more stupid than this.. When people like Hooda or Modi or even communist Budhdev offer Ratan Tata or Ambani free land forcibly acquired from farmers cheaply, NRIs and Foreigners who don't seek any concessions and pay full market price are not allowed to do so freely.

If NRIs could invest $60b in full year 2009 without coming to India it only shows their confidence in India.

How could some crooks in GOI, on the payrolls of some dubious Corporate Ambani & Tata, restrict the inflows of Capital Investment without public consultations and parliamentary debates?

Clearly when $60b arrives just to buy land, $400b to $600b would follow as Project Investment in just 2008 full year.

Indians can buy any property in USA or Canada or EU or Hong Kong without going to these countries though there could be restrictions in sending the money obviously.

Ambani and Tata are not India.

Ravinder Singh

February02, 2009

Foreigners' realty buys under scanner

By Mail Today Bureau in New Delhi

THE government has clamped down on the illegal purchase of properties by foreigners in India.

According to a finance ministry statement, "The government of India has advised state governments to be extra vigilant in matters of acquisition and transfer of immovable property in India by a person resident outside India and satisfy themselves about the eligibility under the foreign exchange management act ( FEMA) before registering a sale or purchase of immovable property in India.

The enquiries may include both the intending buyers and sellers.'' It has come to the notice of the Central government that foreign nationals are buying immovable property illegally in some parts of the country, particularly in Goa, which has raised concerns.

Many organisations and social groups have also made representations to the central government expressing their serious concerns in this regard. It has also been observed that foreign nationals coming to India and staying beyond 182 days on a tourist or other visa meant for a certain period are illegally acquiring immovable property in India in violation of the extant rules and regulations under FEMA. "The centre has advised the state governments, that relevant travel documents and the nature of visa may also be verified before registering such sale or purchase,'' the finance ministry said.

Government has further advised all concerned authorities including those in the state governments that wherever appropriate, the authorities may consider reviewing registration of sale or purchase already made to determine their compliance with legal requirements.

Further, persons acquiring immovable property have to fulfill the requirements, if any, prescribed by the state authorities.

A foreign company which has established a branch office in India under the provisions of Foreign Exchange Management can acquire immovable property in India which is necessary for or incidental to carrying on such activity, subject to the conditions stipulated in foreign exchange management regulations.

Apart from this, a foreign national who is residing in India for more than 182 days during the course of the preceding financial year for taking up employment or carrying on business / vocation or for any other purpose indicating his intention to stay for an uncertain period can acquire immovable property in India as he would be a ' person resident in India' as per section 2( v) of FEMA, 1999.

To be treated as a person resident in India under FEMA, a person is not only to satisfy the condition of the period of stay ( being more than 182 days during the course of preceding financial year) but also his purpose of stay as well as the type of Indian visa granted to him to clearly indicate the intention to stay in India for an uncertain period. In this regard, to be eligible, the intention to stay has to be unambiguously established with supporting documentation including visa.

As per the provisions contained in Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulation 21/ 2000 (Notification No.

NRIs sent home over $39 b in 2008 amid meltdown

Arun Iyer BANGALORE ET February02, 2009

EVEN as the world comes to grip with the ongoing recession, India is expected to witness record inward remittances for second year on a trot with early indications suggesting upwards of $40 billion in calendar year 2008. This is way ahead of World Bank's projection of $30 billion for the year.

   RBI data indicates that India has already received $39.14 billion during the first nine months of 2008. Data for the fourth quarter ended December is not yet available. The fourth quarter coincides with the beginning of the festive period in the country and sees robust inflows normally. Data indicates that India received $10.86 billion during Q4 in 2007 compared to $8.43 billion in the same period in 2006.

   In 2007, World Bank had placed India as the number one recipient of inward remittances globally with flows of $27 billion, followed by China with flows of $25.7 billion.

   Unlike FII flows, inward remittances are considered to be extremely "sticky" as this money, sent on a monthly basis by overseas Indians, is used largely for household consumption. Bulk of these remittances come from blue-collar workers who remit not more than $500 per month.

   Mr Dilip Rath, World Bank's lead economist who was associated with the agency's 2007 report, says India will remain the largest recipient of remittances among developing nations. He says rising crude prices during the early part of 2008 also fuelled demand for more migrant labour from South Asia.

   "The trend is clearly indicating that we would cross the $40-billion mark easily. This is not surprising given that workers have to send money back home for their families to use. The Q4 remittances typically account for over 20% of the calendar year remittances," said Mr Anil Kapur, South Asia managing director for Western Union Services, the international money transfer agency.

   Bankers support the view point, saying India is also gaining due to the underlying economic dynamics. "The rupee's depreciation against the dollar has only added to the surge in inward remittances," Vijaya Bank CMD Albert Tauro said. The rupee has depreciated by over 26% during between January and December 2008.

   Besides the depreciating rupee, there has been policy level help with Indian banks being permitted to hike interest rates on FCNR(B) and NRE deposits. "The government is seeking more inflows to offset the outward movement of FII investments. This move is also aimed at reducing the dependence on "hot" money like FII flows, an official with a Kerala-based private bank said.

   Mr Rath said flows into the developing economies in 2009 could fall anywhere between 1% and 6% while in case of India it could either be flat or witness a marginal slowdown. He added while additional flow of migrants to markets like the Gulf may decline in 2009, the existing stock of migrants is unlikely to fall. "This implies that the remittances from Gulf would remain flat or decline in nominal terms in 2009," he said.