RECYCLED REPORTING

THE ORIGINAL

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=114977&version=1&template_id=40&parent_id=22
Published: Monday, 30 October, 2006, 04:03 PM Doha Time
By Murali Krishnan and Frederick Noronha (Staff Writer, © IANS)

Foreign investments in real estate under security probe
NEW DELHI/PANAJI: A recent report of the National Security Council Secretariat (NSCS) on questionable Russian and other foreign investments in real estate projects in Goa has prompted an inquiry by the state government into the larger ramifications of these deals.
"We know there have been huge investments in Goa over the last couple of years. Many entities and individuals are picking up agricultural land and developing it for the hospitality business. We are trying to find out the real source behind these investments," a top home ministry official said in New Delhi.
According to intelligence reports, the bigger motive behind Russian groups pumping money to buy tracts of land was to get into lucrative rackets later that could include drug trafficking, gunrunning and prostitution.
One case of 19,000sq m of agricultural land brought by two Russians in Morjim, north Goa, has come to light.
The government is now investigating the validity of 482 land deals made by foreigners in the past three years. Among the cases under review are 55.5 acres bought by an American in the north Goan village of Pilerne, 20 acres bought by a Swiss national in Sucorro and 16 acres bought by a Briton in Sangolda.
"On the face of it, running luxury resorts may seem perfectly respectable business but there is a bigger game being planned and that is worrisome," said an intelligence official.
"Tourists from Russia, especially those staying in Goa on long visas, are coming under increasing scrutiny after allegations that East European drug cartels are attempting to turn Goa into a base for their activities," said the home ministry official.
People from Britain, Italy and some other countries have also picked up land and houses in interior areas of Goa like Morjim, Mandrem, Assagao and Poinguinium, using front companies.
In the last two years, real estate prices in this picturesque coastal state have rocketed. Land prices in north Goa, especially Arambol and Morjim, have hit the roof costing anywhere between Rs4,000 and Rs5,000 a square metre.
Calangute, for instance, has become one of the most expensive real estates itn Goa, with prices touching Rs20,000 per sq m (conservative again) near the beach. In state capital Panaji, land could cost upwards of Rs30,000 a sq m in select areas.
The soaring prices in the north have now forced investors to zero in on Palolem, Colva, Agonda and Benaulim in the south, which have also witnessed a boom.
"The property market has fired up in Goa. Everyone seems to want a piece of the place. Buyers are pouring in on a frantic buying spree, almost like an invading army bent on a second ‘liberation’ of Goa from the Goans," says a real estate developer, referring to what is called the ‘liberation’ of Goa from Portuguese rule in 1961. – IANS


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THE COPY

http://oheraldo.in/node/25245

Goa: India’s most expensive real estate
By Tony Martin
JUNE 4, 2007
At least some statistics are verifiable facts. (whatever that means!!!) Check this: In tiny Goa’s Bardez Taluka alone, 562 foreigners from 27 countries have brought 21.44 lakh square metres of land in the last three years according to records available with the State Registrar’s office.
Most of the other 10 talukas have also seen an unprecedented rise in the number of foreigners buying land with great impunity to the laws of the land.
These facts are far above the figures quoted by the Chief Minister Pratapsingh Rane in the State Assembly last July claiming that 482 foreigners from 22 countries have bought 12.61 lakh square metres of land in the State.
According to the RBI guidelines, foreigners can acquire immovable property in India — provided the individual has established a branch office or place of business in India in accordance with the FERA/FEMA regulations.
The guidelines state that foreigners can buy property “provided it is necessary for or incidental to carrying on such activity and all applicable laws, rules, regulations or directions are duly complied with”.
Land deals in this tourist haven have also raised the security concern with allegations that the Russian mafia among others is on an unhindered land-grabbing spree. People from Britain, Italy and some other countries have also picked up land and houses in interior areas of Goa like Assagao, coastal Canacona and Poinguinim, using front companies.
A recent report of the National Security Council Secretariat (NSCS) had suggested that the real estate projects in Goa could include drug trafficking, gunrunning and prostitution.
In a document detailing potential threats to national security, the NSC has said the Russian mafia is using the real estate route to pump in money as the sector comes under automatic approval without much scrutiny.
“Tourists from Russia, especially those staying in Goa on long visas, are coming under increasing scrutiny after allegations that East European drug cartels are attempting to turn Goa into a base for their activities,” said a Home Ministry official.
Former chief minister Manohar Parrikar had said that in his tenure as the CM the revenue from the sale of stamp paper was around Rs 20 crore per annum, but in the last one year it had shot up to Rs 85 crore and this year it would end up at around Rs125 crore.
“There is talk about the Calangute-Baga-Candolim belt being taken over by Russian owners in the past several months,” said a senior police officer.
Former Union Law Minister Ramakant Khalap alleged that foreigners from various countries have picked up agricultural land and houses in interior areas.
In the last two years, real estate prices in this picturesque coastal State have rocketed. Land prices in north Goa, especially Arambol and Morjim, have hit the roof costing anywhere between Rs 6000 and Rs 9000 per sq mt.
Calangute, for instance, has become one of the most expensive real estates in Goa, with prices touching almost Rs 25,000 per sq mt near the beach.
In the State capital Panjim, land could cost Rs 30,000 a sq mt in select areas. Palolem, Agonda and Benaulim in the south are also seeing an unprecedented boom in land prices. (wonder why the strategic depreciation of prices... Maybe the prices dropped since the last time the story was published)
“It is true that more foreigners are acquiring land than ever before, but the numbers are still very small. It is part of a xenophobic overreaction that has been sparked by alarmist reports in the press and by flag-waving, vote-hungry politicians,” says an hotelier from Calangute. (one of the most phenomenal quotes by a restaurateur. Recall the last time you had any hotelier say 'xenophobic overreaction' and 'alarmist reports'!!!)
Goa Chief Minister Pratapsing Rane had recently served an ultimatum on foreigners buying land in Goa that their buying land through illegal means and by violating RBI and Foreign Ministry rules would put them in trouble.
Sub-Registrars were also instructed to route all files pertaining to registration of properties through the Home Department for verification. Rane said if properties are found to have been bought in violation of the law of the land, they would be taken over by the Government.
“The available statistics do ring a bell but the research on the land issue tends to be generally inadequate. There is a need for critical reflection and the most pressing research concern must be to understand the precise nature of the land-grab, need for fresh land reforms and a road map for sustainable development of available land resources,” says an environmentalist pointing out the need to check the trend that is seen as alarming.