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In spite of Hugh NRI Investment Scopes and financial fluidity in Indian Real Estate Sector, there is wide range of problems faced by the NRI Investors. The Real Estate dealers sell varied properties to the NRI’s and after that the least care and concern has been taken from time to time. The

NEW DELHI: A real-life version of `Khosla ka ghosla' is being played out with an increasing number of non-resident Indians (NRIs). Complaints of real estate deals going sour, illegal encroachment and unauthorised occupation of properties have flooded the ministry of overseas Indian affairs (MOIA).

In fact, with the recent Satyam scam casting its shadow on Maytas Properties, apprehensions amongst overseas investors has deepened.

"Property dispute is one of the most frequent complaints by NRIs. They are unable to protect their property due to long absences or lack of awareness of laws," Overseas Indian Affairs Minister, said.

The largest number of complaints are from major real estate markets like Delhi, Mumbai, Bangalore, Andhra Pradesh, Kerala and Punjab.

The nature of the complaints are mainly protection of property that has been forcibly occupied or encroached, dispute relating to division of property or inheritance and cases where investors have been cheated by real estate developers.

The Ministry added that following this flood of complaints, he had written to state governments asking them to appoint nodal officers for civil, judicial and police matters. These nodal officers are independent from NRI cells that are dedicated for issues related to financial or welfare interests of overseas Indians.

The Ministry has also planned a session on property disputes at the Pravasi Bharatiya Diwas in January 2010. The purpose of the interactive session is three-fold: allowing NRIs to invest safely in realty, putting in place an institutional mechanism at the state-level for property related disputes and providing a channel for credible information relating to property and inheritance laws.

The session hopes to bring legal luminaries, NRI associations and state police officials on a common platform to hammer out a solution. "The Pravasi Bharatiya Diwas PBD will offer an opportunity to people to debate and understand the issue," MOIA secretary, said.

Property Grievances Dominate First Day of Pravasi Bharatiya Divas

A plethora of issues ranging from cheating by builders to complexities involved in succession and inheritance of properties dominated the first day of the annual Pravasi Bharatiya Divas here attended by nearly 1,500 delegates from over 40 countries. Red tape in approval of investment proposals and bottlenecks in acquiring land for projects were also raised strongly by the delegates who called for simplifying procedures to facilitate their involvement in India’s development. A group of non-resident Indians (NRIs) from the U.S., the U.K., Australia and some Gulf countries raised the issue of non-delivery of flats sold to them by Maytas Properties, real estate firm promoted by kin of disgraced Satyam founder B. Ramalinga Raju.

“More than one year has passed but not a single brick moved into Maytas Hill County in Hyderabad. Over 300 NRIs are trapped into this tragedy and the government has done nothing,” said Srinivas Reddy, an NRI from Britain. Assuring the diaspora of all possible help, Overseas Indian Affairs Minister Vayalar Ravi, Corporate Affairs Minister Salman Khursheed and Minister of State for External Affairs Preneet Kaur said the government would address all grievances of the NRIs and the PIOs (Persons of Indian Origin). They were speaking at a conference on property-related disputes of the diaspora community. On the complaint of non-delivery of flats by Maytas, Mr. Khursheed said he was “confident of finding a solution to the problem as soon as possible.”

Taking note of problems such as illegal occupation and encroachment of their properties in India, Mr. Ravi said his Ministry had asked the State governments to address the grievances of the diaspora on priority basis. “Most of the issues relating to property and land are under the jurisdiction of the State governments and we are regularly asking them to extend maximum help to the Diaspora,” Mr. Ravi said in his address to the eighth edition of the annual flagship event of his Ministry.

Mr. Khursheed said: “We are really concerned about your problems. Please go back with full confidence that your watchman [government] is here, your properties are fully safe.” Most of the complaints were related to real estate sectors and some delegates even urged the government to set up a regulatory body or grievance redress system to address the problem. “My lifetime savings and future savings in the form of loan are in my house in Maytas Hill County in Hyderabad. I request the government to immediately address the problem,” said Srinivas Rao, an NRI based in Washington. Prime Minister Manmohan Singh will address the event on Friday while President Pratibha Patil will deliver her valedictory address on Saturday.