27 Jul, 2008, 1226 hrs IST,
IANS
LONDON:
An overseas property agent has returned deposits of Irish buyers who invested in
properties in India on the ground that tightened laws made it difficult for
people of non-Indian origin to buy immovable properties
there.
The move by Ireland's
well-known international property dealer Larionovo was prompted by concerns over
the ability of the buyers to repatriate
funds.
India has attracted
overseas property investors because of its rapidly expanding economy and the
fact that prices are low by Western standards. Earlier this year, authorities in
Goa moved to ban the sale of land to foreigners amid concerns about the amount
of property being purchased by non-Indians. But it is not clear whether the
properties concerned were in Goa or elsewhere.
Larionovo began marketing
units in three schemes in India in the spring of last year. Two of the schemes,
Green Hill and Green Valley, are located south of the business capital of
Mumbai. The third, Cape Corinth, is in the holidayers' paradise of Goa.
Prices ranged from 29,250
Euros (nearly $46,000) for a studio at Hill View to 52,000 Euros for a
one-bedroom unit in Cape Corinth.
One investor who paid a
deposit on a property at the end of last year said he received a letter from
Larionovo stating that there were possible issues surrounding the repatriation
of funds and that the company was examining the situation. Some weeks later, he
was informed that the firm had decided to return his funds. He has now received
all of the money due to him.
In a statement issued to The
Sunday Business Post, Larionovo said that "due to the tightening of regulatory
and governmental controls on foreign nationals of non-Indian origin (residents
outside India) purchasing immovable property, Larionovo has decided that it
would not be prudent for their clients to complete the purchase of their units
in India".
At this point,
Larionovo approached the developer with its concerns and began negotiations to
ensure that the client's interests would be protected, the statement
said.
"Larionovo has secured an
agreement that the developer will take back all the units from the clients,
refund all payments made by the clients to date, absorb any losses incurred as a
result of currency fluctuations, and provide a return on the client's
investments."
However, some
other property companies are pressing ahead with sales of Indian properties to
Irish investors.
Kieran
Murphy, managing director of Kuvera India, which has sold a number of properties
in the Rudrapur region in Uttarakhand to Irish investors, said he was satisfied
there were no obstacles to buyers repatriating funds from the
country.
LONDON:
An overseas property agent has returned deposits of Irish buyers who invested in
properties in India on the ground that tightened laws made it difficult for
people of non-Indian origin to buy immovable properties
there.
The move by Ireland's
well-known international property dealer Larionovo was prompted by concerns over
the ability of the buyers to repatriate
funds.
India has attracted
overseas property investors because of its rapidly expanding economy and the
fact that prices are low by Western standards. Earlier this year, authorities in
Goa moved to ban the sale of land to foreigners amid concerns about the amount
of property being purchased by non-Indians. But it is not clear whether the
properties concerned were in Goa or elsewhere.
Larionovo began marketing
units in three schemes in India in the spring of last year. Two of the schemes,
Green Hill and Green Valley, are located south of the business capital of
Mumbai. The third, Cape Corinth, is in the holidayers' paradise of Goa.
Prices ranged from 29,250
Euros (nearly $46,000) for a studio at Hill View to 52,000 Euros for a
one-bedroom unit in Cape Corinth.
One investor who paid a
deposit on a property at the end of last year said he received a letter from
Larionovo stating that there were possible issues surrounding the repatriation
of funds and that the company was examining the situation. Some weeks later, he
was informed that the firm had decided to return his funds. He has now received
all of the money due to him.
In a statement issued to The
Sunday Business Post, Larionovo said that "due to the tightening of regulatory
and governmental controls on foreign nationals of non-Indian origin (residents
outside India) purchasing immovable property, Larionovo has decided that it
would not be prudent for their clients to complete the purchase of their units
in India".
At this point,
Larionovo approached the developer with its concerns and began negotiations to
ensure that the client's interests would be protected, the statement
said.
"Larionovo has secured an
agreement that the developer will take back all the units from the clients,
refund all payments made by the clients to date, absorb any losses incurred as a
result of currency fluctuations, and provide a return on the client's
investments."
However, some
other property companies are pressing ahead with sales of Indian properties to
Irish investors.
Kieran
Murphy, managing director of Kuvera India, which has sold a number of properties
in the Rudrapur region in Uttarakhand to Irish investors, said he was satisfied
there were no obstacles to buyers repatriating funds from the
country.
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