Holiday Rentals News - Britons could lose Goa villas amid law changes & claims of corruption

Britons could lose Goa villas amid law changes & claims of corruption

Owners of holiday homes in Goa face losing their properties. Hundreds of British expatriates are falling foul of new land laws and reported scams in Goa.

In recent years, numerous Britons have invested tens of thousands of pounds in Goa villas. The Sunday Times explains that these were legitimate transactions, but foreign owners are now being told that the rules have changed and their property may be confiscated.

Many British buyers were told by local lawyers and the Reserve Bank of India (RBI) that they could legally own property if they set up an Indian company and made the transaction through that. However, by 2007 Goan authorities were interpreting the rules on foreigners owning property through a company differently.

One Briton told the paper that she was informed by the RBI that she had followed the correct procedures when purchasing property. Nevertheless, she was told by another local official that the property couldn't be registered - the Goan government had told registrars not to register property to Indian companies with foreign directors. The government circular added that property should not be registered to foreigners at all.

According to local lawyer Vikram Varma, more than 1,000 may be affected by the situation. Furthermore, over 400 foreigners - mostly Britons - are being investigated by India's enforcement directorate for alleged violations of property laws and could have their homes confiscated.

Britain's Foreign Office said that it recognised the distress of those involved and has expressed its concerns to the Indian government. A spokesperson told the paper: "We have made it clear that there should be no confiscation of property acquired legally by British nationals."

Some investors also claim to be experiencing visa problems. One couple have lived in Goa for over a decade on extendable five-year visas but were denied a new one when it came to renew this year. The pair were offered tourist visas instead and allege that the Delhi official dealing with their application told them to "go home" to Britain.

This story was brought to you by holidaylettings.co.uk, the UK's No.1 for holiday homes worldwide.

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