Russian firm appeals against confiscation of Goa properties

Saturday, September 25, 2010

PANAJI - A Russian firm, whose four properties were confiscated by the Enforcement Directorate for alleged foreign exchange violations, has appealed to the Foreign Exchange Management Authority (FEMA), the firm’s lawyer said here Saturday.

The True Axis Resorts Private Limited (TARPL) has also sought a stay on the process initiated by the Enforcement Directorate (ED) earlier last month following a two-year probe. ED said the land in Morjim was purchased in violation of the FEMA norms.

The firm had planned to start a resort on the land in Morjim, a beach village 30 km from here, spread over 20,000 sq mt and valued at around Rs.1.25 crore.

“We will write to the state chief secretary informing him about the appeal to the appellate authority. Until the authority delivers a verdict, the government cannot take any action,” said Vikram Varma, lawyer for the firm.

“The company was formed with proper capital and in accordance with the Reserve Bank of India (RBI) norms,” Varma said.

“If authorities begin to seize properties like this, the people will be worried to invest in India. If such a signal goes out abroad, it will not be good,” Varma further said.

TARPL has two Russian directors — Valiulin Rashid and Leonid Beyzar.

Along with the TARPL property, the ED is probing nearly 200 more such landholdings purchased by foreigners after flouting foreign exchange regulations.

Filed under: Immigration

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