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Overseas Indians – NRis – Aspire for Properties in India

Overseas Indians or Non-Resident Indians (NRIs) aspire to own a home or real estate in India. These properties have rocketed in prices – doubled or even quadrupled over the last decade. They also inherit properties of their forefathers. Up to now, these properties were not so valuable but now with their prices literally going through the roof, so the overseas Indians are keen to sell them and remit the proceeds to them abroad as this is allowed by Indian authorities. Thus, the interest in properties in India has zoomed for these overseas Indians because if they invest in property, their value goes up many times, unlike in the West. And if they sell their inherited properties, they get a bonanza overseas where they live.

But their experiences in dealing in buying, selling or renting real estate in India can put any horror movie to shame. An NRI couple from USA came to Mumbai on vacation and when they visited their ancestral farm, the illegal occupiers refused to vacate the land. The NRI was brutally beaten, his wife sexually molested and hounded out of their property that had been grabbed by the neighbours.

Although the numbers do not reveal the full harassment, no less than 3,000 NRIs are caught in land disputes in Punjab. Overseas Indians living in the US who own properties in Kolkata, New Delhi, Chandigarh and Kerala have been struggling fruitlessly for over two decades to recover their properties without any hope so far. NRIs from every state in India residing in every country can recount their horrendous tales of their ancestral property or their own holdings illegally grabbed, occupied and confiscated by their relatives, friends or agents.

Estate developers and agents have duped NRIs because they did not inspect properly all the relevant property documents. Suppressed encumbrances and defective ownership titles have led to complications, even for resident buyers, leave alone overseas Indians. Even Deeds of Registration showing false titles have been found to be forged because proper searches of the title ship records of the preceding 30-40 years, kept in the offices of Registration Department, are not commissioned by the buyers, through their lawyers, according to Mr M. M. Maheshweri, Co-Chairman of the Global Organisation of People of Indian Origin (GOPIO) Task Force.

NRIs are particularly vulnerable to such malpractices, because of the lack of time, knowledge and proper legal support at their disposal. Can we think of formulating comprehensive central guidelines, to help them take all the necessary steps, before finalising their property deals? This would perhaps avert future hazards, created not by the illegal grabbers of NRI property, but by the fraudulent property dealers, who exploit the NRI unsuspecting credulousness.?

Their unceasing harassment, and seemingly endless struggle, to extricate their fraudulently grabbed property, from the clutches of local tormentors, through the cobwebs of Law Courts, surrounded by a maze of legal labyrinths, packaged as the “due process of the Indian Judicial System” turns them away from India. This saga of our unrelieved pain leaves us befuddled, dismayed and distressed, added Mr Maheshweri.

Enough is enough and so in January 2010, GOPIO will hold a special panel during its annual conference in New Delhi. Some legal experts were invited to give their advice and opinions to try and find workable solutions. The aim is to devise a way out, to resolve the property issues of the NRIs within the parameters of the Indian legal system. Indian law moves slowly if at all and so does not provide ready recourse to an NRI; so a special fast track court for NRI property problems is desperately needed. A number of special courts and tribunals have been set up to deal with specialized cases, so why not a Fast Track Court or Tribunal for NRIs to resolve their property disputes? NRIs lose out because the Indian legal system takes years, if not decades, to pronounce judgements on cases and the legal system is overloaded with over 30 million pending cases that would take decades to clear.

After the highly emotional session during which a number of NRIs recalled their horror stories with dismay, a strong resolution was passed to urge the Government of India to look into this matter during the last such meeting by GOPIO. A large number of NRIs wrote back to GOPIO with their property woes after this resolution was published in its newsletter last month. The Chairman of this Task Force, Prof. Subash Sharma of Southern Illinois University, referred some of them to lawyers in New Delhi. Later, the Task Forces sent a strong letter to the Indian Law Minister to look into this matter with a copy to the Minister for Overseas Indian Affairs urging them to act on GOPIO Resolution quickly due to the urgency of the problem.

Whether it a hereditary, residential, or commercial property,?one of the main reason for these scams is that the NRIs are at a great disadvantage that they can not contest court cases in India. The civil case can linger on for 15-20 years and for a criminal case the plaintiff should be present on every court date in India which is impossible for any NRI. So they suffer silently.

A NRI was getting legal notices for over two years to pay the dues of the cooperative society for his prime flat on Juhu Beach, Mumbai, as his tenant refused to pay neither dues nor the rent. When served with a final notice, he travelled to Mumbai to sort out the matter. The tenant flatly refused to vacate, pay rent or the dues. He offered to buy the flat at one tenth of the market price. Here was an offer the NRI could not refuse because unless he sold the flat, he would face a court case. It was a tough decision for me.