PANAJI: The Goa Government has decided to approach the Centre seeking powers to proceed in cases of violation of the Foreign Exchange Management Act (FEMA), 1999.

The decision was taken on Thursday as part of State Government's strategy to deal with growing cases of violations by foreigners in illegal purchase of property and agricultural land in the State.

J.K. Dadoo, Development Commissioner and Revenue Secretary, told The Hindu on Friday that there was a provision under FEMA wherein the Union Government could confer such powers on the State.

For the present, the State Government had decided to hand over 480 cases of alleged violations, compiled by it after scrutiny, to the Reserve Bank of India (RBI) to initiate action.

These are cases wherein foreigners had purchased land, both agricultural and non-agricultural, allegedly in violation of FEMA, he said. Once the State gets the powers, it is felt that it will be in a better position to look into such cases, which are currently handled by the RBI.

Shantaram Naik, MP, had recently introduced a private member's bill in the Rajya Sabha to make it compulsory for foreigners to produce before the registering authority documentary proof of all the statutory requirements needed to be complied with or under an Act of Parliament or the State legislature in the matter of sale or purchase of immoveable property under FEMA.

Complaints raised

After the issue came into focus following complaints by political parties and citizens, the State Government issued guidelines to the Registrar of Companies and the Land Registration Department, directing them to refer the cases of proposed sale deeds involving foreigners to the State Home Department for scrutiny to ascertain whether RBI approvals had been obtained or not. That apart, the Government has sought the help of the Registrar of Companies as it has come to light that some foreigners have floated companies in association with locals only to buy land.

According to sources in the State Government, the Enforcement Directorate has also sought details of the cases compiled by the State Government. Besides the RBI, the Enforcement Directorate too would inquire into the cases of violations, said sources in the State Home Ministry here.

Till recently, the registration authorities of the State used to accept mere affidavits from foreigners saying they had complied with all the required provisions of FEMA while registering property. After Chief Minister Pratapsingh Rane decided to order an inquiry, the Government withdrew this provision of getting affidavits from foreigners and instructed the sub-registrars to forward doubtful cases to Home Ministry or face action.

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