NRI Legal Services

Laws Related to NRI Divorce

2009-11-09T00:45:00.001-08:00

They provided themes for bollywood hits but in real life, NRI weddings may not be the proverbial bed of roses. Nearly two in every ten NRI marriages are faked or end up in a divorce. As many as 152 cases of fraudulent marriages are registered with the Ministry of Overseas Indian Affairs.
In many cases, girls, just to get a green card, marry Indian Americans and later divorce them, she says, noting “A number of NRI marriages last only for two years, the time needed to get a green card. Many times, people even have kids to make it seem like a real marriage. This is also creating a population of ‘abandoned’ children.”
Woman who sought to use criminal law to punish her husband and in-laws for dowry demands and/ or, or matrimonial cruelty and found that the trial could not proceed as the husband would not come to India and submit to the trial or respond in any way to summons, or even warrant of arrest.
Woman who had to fight nasty legal battles for custody of her children and for child support, and to bring them back with her after she was divorced or forced to leave, sometimes even facing charges of illegally abducting her own children.
Woman married to NRI who was abandoned even before being taken by her husband to the foreign country of his residence – after a short honeymoon he had gone back, promising to soon send her ticket that never came. In many instances the woman would already have been pregnant when he left and so both she and the child (who was born later) were abandoned. The husband never called or wrote and never came back again. The in-laws who could still be in India would either plead helplessness or flatly refuse to help.
Measures being taken by the Indian Government
The Domestic Violence Act has been created mainly to protect women from excesses against them, where action is prompt and justice ensured within three months. There are numerous NGOs and other agencies that provide officers to protect these women.

The ministry of Overseas Indian affairs has been issuing public service messages on television on how vital it is to get marriages registered, and a copy of the marriage certificate be made available as proof. There is also a booklet that has been published titled Marriages to Overseas Indians, which is a Bible for brides and their parents.
Some common situations that lead to divorce are:
• The NRI spouse already has another spouse, and in some cases children also, settled with him abroad. In most of the cases the groom does not take the bride with him leaving her behind with parents. But when the reality is disclosed the girl’s family seeks divorce for their daughter.
• The NRI spouses exaggerate about their possessions in the foreign country - home, vehicle, high paying job, but actually might not be in a position to support a family after marriage.
• The lifestyle of the NRI spouse is too much advanced for the Indian spouse to keep pace with him or her. The NRI spouse feels that he or she is not suitable as a partner and seeks divorce on the grounds of incompatibility.
Whatever may be the reason for divorce, a person who has married an NRI should be aware of the basic laws related to NRI divorce.
• If both the spouses are Indians and have been married under Hindu marriage Act of 1955 they can seek divorce with mutual consent under section 13-b that provides for divorce by mutual consent.
• If both the spouses are residing in USA, or any other foreign country, then they can seek divorce by mutual consent under the country’s divorce laws related to foreign marriages. The Indian legal system will recognize the divorce only if it is with the consent of both the parties.
“There are country specific legalities that need to be studied first. Thereafter, some changes or enhancing some clauses to curb the problem in these countries can be recommended after sensitizing their local authorities about the problem of desertion of Indian brides,” Secretary, Ministry of Overseas Indian Affairs (MOIA), K Mohandas said.
The recommendation was accepted by the committee on observation that it is very easy to seek for and get a divorce in these countries.
“Local authorities in these countries are not much aware of Indian customs and traditions whereby it is very difficult for an Indian woman to enter into nuptial ties again after a divorce,” an MOIA official said.
NRI DIVORCE / MARRIAGE VARIOUS ENACTMENTS
• The Indian Divorce Act, 1869
• The Special Marriage Act, 1954
• The Hindu Marriage Act, 1955
• The Hindu Minority and Guardianship Act, 1956
• The Hindu Adoptions and Maintenance Act, 1956
• The Dowry Prohibition Act, 1961
• The Foreign Marriage Act, 1969
• The Family Courts Act, 1984
• The Muslim Women (Protection Of Rights On Divorce) Act, 1986
It also recommends that the government ask foreign missions to ensure visa isn’t granted without a marriage certificate and social security number, if applicable; that fast track courts take up litigation related to NRI marriages; and that the Law Ministry issue appropriate circulars.
It is clear that certain laws are being amended and help being offered to victims of NRI crimes. However, is this enough or do you feel that more can be done in providing assistance and enhancing awareness of the common man on the subject?

Loan for NRI

2009-11-06T02:51:00.001-08:00

Indians living on foreign lands always can use a house of their own in their country. Hence, NRI loans are now helping all those Indians to have this dream fulfilled in many wonderful ways and with lots of other benefits.
The Non-Resident Indians (NRIs) are recognized under the Foreign Exchange Regulatory Act, 1973. Every bank and housing finance companies follow the RBI guidelines to define NRI -
"An Indian citizen who holds a valid documents like Indian passport and who stays abroad for employment or for carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a NRI."
Eligibility Criteria:-
• Non-resident Indians planning to return home
• Government servants stationed overseas on duty with the Indian missions or deputed abroad by foreign Governments or international agencies
• Loans are also granted for renovation of an existing property.
Loan Amount
Housing finance companies can cover up to 85% of the cost of the residential property, with an upper limit of Rs.1 crore & Minimum loan amount Rs. 3 lakhs. The capacity to repay determines the maximum that an NRI can borrow, which in turn is determined by such factors as: income, age, qualifications, work experience, number of dependants, income of spouse, assets, liabilities, stability and continuity of occupation, employment prospects in India, and savings history.
As per a circular issued by the RBI on 31st January, 2007, if the loan is against the NRI's NRE and FCNR accounts, the maximum loan amount cannot exceed Rs. 20 lakhs.
Rate of Interest and other charges
• Interest rates are same as applicable for resident Indian borrowers for various tenures, available on fixed/floating/combination of fixed and floating rates (under SBI-Flexi Home Loans)
• Repayment in EMIs (Equated Monthly Installments)
• Interest is applied on daily diminishing balance basis
A NRI has options of fixed rate and floating rate interest home loans. In a fixed rate scheme the rate of interest associated with the loan is fixed, i.e., a borrower cannot take advantage of a reduction in interest rates in future. And, if they wish to change over to the floating rate scheme, they will be levied some extra charges. On the other hand, in a floating rate scheme, the monthly repayment amount changes according to the fluctuation of rate of interest in the market.
Time Span of Loan
Generally loans are disbursed for a period of 3 to 10 years, and NRIs can avail of time spans to suit their convenience.
Guarantee for the loan
The residential property that is being purchased is mortgaged to the financing institution, by submitting title deeds and other collateral security as may be required:
• Original title deeds tracing the title of the property for a minimum period of the last 13 years.
• Encumbrance Certificate for the last 13 years.
• Agreement of sale /construction, if any.
• Approved plan / license.
• ULC clearance /conversion order etc.
• Receipts for having invested the margin money through normal banking channels from the Non-Resident (External) account in India and / or the Non-Resident (Ordinary) account in India.
• Latest tax paid receipt
Supporting documents to avail a Housing Loan:
• Passport and Visa
• A copy of the appointment letter and contract from the company employing the applicant.
• The labor card/identity card (translated in English and countersigned by the consulate) if the person is employed in the Middle East
• Salary certificate (in English) specifying name, date of joining, designation and salary details.
• Bank Statements for the last six months.The power of attorney (POA). The POA is required because the borrower is not based in India and in such a scenario; the HFC would need representative 'in lieu of' the NRI to deal with as required. Although not mandatory, the POA is usually drawn on the NRI's parents, wife or children.

PIO Card

2009-10-21T01:48:00.001-07:00

Person of Indian Origin refers to a person of Indian origin who is not a citizen of India. PIO Card is a form of identification which is issued to a PIO who holds a passport in another country, except Pakistan and Bangladesh.
The PIO card came in effect from 15 September, 2002. For the purposes of issuing a PIO Card, the Indian government considers:
1. Anyone of Indian origin up to four generations removed, to be a PIO.
2. Spouses of people entitled to a PIO card in their own right also have option to carry PIO cards. Regardless of ethnic origin, foreign spouses of Indian nationals are also included.
3. Anyone who has ever held an Indian passport.
Card holders are exempted from many restrictions applying to foreign nationals, such as visa and work permit requirements, along with certain other economic limitations.
In order to allow a limited form of dual citizenship to Indians, NRIs and PIOs, the Indian government, as of January 2006 has introduced the "Overseas Citizenship of India (OCI)" scheme for the first time since independence. PIO card scheme is expected to phase out in favor of OCI in the coming years. The PIO card is valid for period of 15 years from the date of the issue.
Advantages of PIO card:
1. No visa required for visiting India during the period of validity of PIO Card.
2. Exemption from registration at Foreigners Registration office at District Headquarters if stay in India does not exceed 180 days.
3. Parity with non-resident Indians in respect of facilities available to the latter in economic, financial and educational fields i.e.
a) acquire non-agricultural and plantation property in India,
b) admit children to all educational institutes in India under NRI quota,
c) apply for various housing schemes of LIC, state governments and other government agencies.
However, persons with a PIO are not allowed to vote and are ineligible for an inner line permit. Protected area permit is mandatory for these cases. They cannot undertake activities like missionary and research work, mountaineering, existing PAP/RAP without a special permit.
Documents required:
1. All relevant documents which substantiate claim to Indian origin.
2. In the case of children, a copy of the parent’s passport if parent still an Indian citizen, or old passport or birth certificate.
3. 4 passport size photographs, front view.
4. PIO card fee – US$ 310 for adults; US$ 155.00 for children, by a check favoring Embassy of India/Consulate General of India (as applicable).
Under the citizenship Act, PIO card holders can also apply for citizenship if they have resided in India for a minimum of 7 years before the application is submitted.
Withdrawal of PIO card:
1. If obtained through fraud, concealment of facts or false representation.
2. The activities of the card holder in India do not confirm to the laws of the country and the Indian Constitution.
3. The card holder happens to be citizen of a country with which India is at war, or is supporting another country in acts of aggression against India.
4. PIO found guilty of acts of terrorism, smuggling of arms and ammunition and narcotics or has been sentenced in India up to one year’s imprisonment or fined up to Rs. 10,000.
5. Card holder’s presence in India is detrimental to the interests of the country.
Explanation for withdrawal of the PIO card by the Government of India is not necessary.

Adoption bY Nri's

2009-10-19T23:27:00.000-07:00

Many non-resident Indians and people of Indian origin (PIO) who wish to adopt Indian children face a lot of hurdles.
Adopting a child from India may seem simple on paper, but the paperwork and procedures can be time-consuming. So much so that it is rare for a foreigner to get a baby younger than 10 months or a year. Of course, the satisfaction and fulfillment that one feels when the baby is one’s arms makes the long process worth the wait! Luckily, the Indian government has realized this problem and is now trying to speed up the process of adoption. From this year onwards some results are expected.
What exactly does an adoptive parent have to anticipate? Well, there are different rules - for Indians living in India, for those of Indian descent living in foreign countries and for foreigners. One of the advantages of Indian adoptions is that singles are allowed to adopt, including single males. However, it is easier for single women.
Generally speaking, childless parents are preferred, though this is not a must. If you have only boys, then it is perfectly alright if you adopt a girl. The age difference between the child and parents should not be more than 45 years.
For NRI’s (Non-Resident Indians)
No relatives can be adopted - only abandoned children. Secondly, at least one parent needs to hold foreign citizenship as most countries (United States) do not allow you to adopt from another country unless you are a citizen. It is also ideal if the other parent has an Indian passport as this exempts the prospective parent from an ACA clearance. This saves time and paperwork. Overall, parents of Indian descent are preferred, even if they hold foreign citizenship.
The Guardians and Wards Act, 1890 (GWA), a 116 year old Indian law, plays spoilt sport for the 12 million orphaned children in India who need parents by not allowing Muslims, Christians, Jews and Parses to become a child’s adoptive parents.

They can only be appointed as ‘guardians’. Even the more liberal Hindu Adoption and Maintenance Act, 1956 (HAMA) does not allow non-Hindus to adopt a Hindu child. The process is tedious and hemmed in with restrictions.

The result - non-Hindus and foreign nationals can at most become guardians but cannot adopt children from India, even after they comply with the cumbersome procedure.

The procedure of adopting Indian children is extremely complicated for NRIs, even if they are Hindus. Section 16 of HAMA gives a conclusive status to an adoption deed recording an adoption in compliance with the provisions of this Act.

So a Hindu NRI - who having executed an adoption deed under the said Act, approaches the American, British or any European embassy or high commission, for immigration of the adopted child to its new home country - is faced with big disappointment.

The adoption deed is not enough. The foreign rules stipulate that the adoptive parents have to now obtain ‘guardianship orders’ from a ‘guardian judge’ under the Hindu Minority and Guardianship Act, 1956 (HMGA) for Hindus and a similar order under the GWA for non-Hindus. Genuine transfer of parental responsibility does not help.

The fact that a valid adoption under HAMA is not acceptable for immigration purposes, unless supported by a guardianship order either under GWA or HMGA, is somewhat of a legal paradox.

In fact, it’s a pity that even after 60 years of Independence, India does not have a comprehensive adoption law applicable to all its citizens, irrespective of the religion they profess or the country they live in as NRIs, PIOs. .

In-country Adoption of Indian children is governed by In-country Guidelines-2004 while Inter-country Adoption procedure is governed by a set of Guidelines last issued on 14th February’2006. These Guidelines are a follow up of various directions given by the Supreme Court of India in L.K. Pandey vs. Union of India (WP No 1171 of 1982 and other cases). These Guidelines are amended and updated from time to time keeping in mind the welfare of such child. While CARA (Central Adoption Resource Authority) is engaged in clearing inter-country adoption of Indian children, its principal aim is to promote in-country adoption. In fact, CARA ensures that no Indian child is given for inter-country adoption without him/her having been considered by Indian families residing in India. CARA also provides financial assistance to various NGOs and Government run Homes to promote quality child care to such children and place them in domestic adoption.

Further, keeping in view the repeated guidelines of the Supreme Court of India in adoptions by foreign nationals to prevent trafficking of children and to protect their welfare, a uniform streamlined statutory procedure acceptable to foreign jurisdictions would also serve the purpose better to mitigate the plight of the adopted child.

Necessity of PAN card for NRI

2009-10-10T00:13:00.000-07:00

Effective 1st January 2007, all Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) need a Permanent Account Number (PAN) card to invest in India: primarily in Indian stock markets - viz: Indian mutual funds, stocks, derivatives, bonds or who wants to carry any kind of financial transaction.:
Applying for a PAN

Department of Income Tax (DIT) has appointed two agencies for issuing a Permanent Account Number and the PAN Card:
Unit Trust of India Investor Services Ltd (UTIISL)
National Securities Depository Limited (NSDL)
The PAN Card can be obtained by submitting Application Form 49A to either of these two agencies. The form can be downloaded. It gives an opportunity to both apply and pay for a PAN card online. The waiting time for an NRI is, on an average, 25-30 days. According to The Income Tax Department rule, Person is liable to pay a fine of Rs. 10000 if he doesn’t have a PAN.
Fee:
The fee for processing a PAN application is Rs.717 composed of application fee Rs.67 (Rs.60 + 12.24 per cent service tax) plus overseas dispatch charges of Rs.650. You can pay by demand draft payable at Mumbai.
Requirements:
Besides several other requirements, a proof of the following is also needed:
· His own identity
· Address in India as well as abroad
· Designation and code of the concerned Assessing Officer of Income Tax Department
· Details of a Representative Assessee: Section 161 of the Income Tax Act specifies that every Representative Assessee shall be subject to the same duties, responsibilities and liabilities as the NRI. And if the NRI who is being represented fails to pay his tax dues, such tax shall be levied upon and recovered from him i.e. the representative assessee.
Equity / Share Market Trading & Demat Account
To invest in share market, prior permission must be obtained from the Reserve Bank of India. All Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) need a PAN card to invest in the Indian stock markets. (Foreign investors would also need a PAN).
Demat or ‘dematerialized’ account enables you to buy, sell and transact shares without the endless paperwork and delays, thus making it possible to even trade on the internet. It is also safe, secure and convenient and helps you to avoid stamp duty and filling transfer deeds, and obtaining quick receipt(s) of benefits like stock splits and bonuses.
Filing Income Tax Returns
It is required to recite your PAN on a return of income, all encounters with any income tax authority for anything that you owe to the Income Tax Department.
Property Transactions
This condition has been waived for NRIs and PIOs (as per Rule 114C). Thus, it is not mandatory for an NRI / PIO to have a PAN for entering into a property transaction.
It is required to recite your PAN on all documents that have to do with and transactions you might have economically or financially.

NRI Legal Services: NRI Investment in India

2009-10-08T21:54:00.000-07:00

NRI Tax IssuesNRI India Investment has been subjected to ample neglect over the years. It is only in the past few years that the Indian Government is paying utmost interest in this matter as NRIs all over the globe are being encouraged to bring fresh funds for the economy. BEING THE 10TH largest economy in the world and the 4th largest in terms of purchasing power parity (PPP), India has emerged as a potential destination for NRI investment. It has a large reservoir of skilled labor which is internationally cost-competitive, a large entrepreneurial base and a diversified manufacturing sector. These attributes make it easy to find partners for collaborations.
Non Resident Indians are allowed to invest any of the following investments in India with conformance to the following stipulations.
1. Residential Property
2. Commercial Property
3. Bank Accounts
The NRI/PIO may use his own funds to acquire immovable property; other than the option of availing home loan from bank for this purpose. The NRI's ‘own funds’ refer to the money received in India by way of inward remittance from overseas out of income earned overseas, personal savings outside India. These funds can be remitted through Non-Resident External (NRE) or Non-Resident Ordinary (NRO) or Foreign Currency (non-resident) (FCNR) bank accounts.
Reserve Bank has granted general permission to NRIs/PIOs, for undertaking direct investments in Indian companies, under the Automatic Route purchase of shares under Portfolio Investment Scheme, investment in companies and proprietorship/partnership concerns on non-repatriation basis and for remittances of current income. NRIs/PIOs do not have to seek specific permission for approved activities under these schemes.
Moreover, they can remit sale proceeds outside India for up to two such properties without any RBI approval. Remittance for subsequent properties requires RBI's approval. In case the property is acquired from rupee funds held in India, the remittance depends on the holding period of the property.
SPECIFIC PERMISSION OF RBI
Permission of the RBI is required to be obtained by all Non-Residents, resident foreign citizens, foreign companies and branches of foreign companies operating in India for:
· Carrying on in India any trading, commercial or industrial activity on its own or through an agent;
· Establishing a place of business in India to carry on such activity;
· Acquiring the whole or any part of business or industrial undertaking in India;
· The purchase of shares in Indian companies;
· Accepting appointment or acting as agents in India of any person or company;
· Acquiring, holding, transferring, disposal by sale, mortgage, gift, lease of more than 5 years, settlement orotherwise, of any immovable property situated in India.
An Indian company, in which non-resident interest is more than 40%, requires RBI permission to engage in agriculture or plantation activities or to acquire the whole or part of any undertaking engaged in such activity.Foreign nationals require RBI permission to practice any profession or to carry on any occupation, trade or business in India if they wish to repatriate their earnings abroad.
NRIs can invest in India as under:
1. Investment under Automatic Route with repatriation benefits
2. Investment with Government approval
3. Other investments with repatriation benefits
4. Investments up to 100% equity without repatriation benefits
5. Other investments by NRIs without repatriation benefits.
1. Investment under Automatic Route with repatriation benefits:
NRIs can invest in shares/convertible debentures of Indian companies under the Automatic Route without obtaining Government or RBI permission except for a few sectors where FIPB/SIA permission is necessary, or where the investment can be made only up to a certain percentage of paid up capital.
2. Investment with Government approval:
Investments not eligible under the Automatic Route are considered by the Foreign Investment Promotion Board (FIPB), a high powered inter-ministerial body under the chairmanship of Secretary, Department of Industrial Policy & Promotion, SIA, subject to sectoral limits/norms. These investments also enjoy full repatriation benefits.
3. Other investments with repatriation benefits:
· INVESTMENT IN DOMESTIC MUTUAL FUNDS
· INVESTMENT IN BONDS ISSUED BY PUBLIC SECTOR UNDERTAKINGS
· PURCHASE OF SHARES OF PUBLIC SECTOR ENTERPRISES (by NRIs/PIOs/OCBs)
· DEPOSITS WITH COMPANIES (FOR A MINIMUM PERIOD OF THREE YEARS)
· INVESTMENT IN GOVERNMENT SECURITIES/SHARES

4. Investments up to 100% equity without repatriation benefits:
CAPITAL CONTRIBUTION TO ANY PROPRIETARY OR PARTNERSIP CONCERN: NRIs can invest by way of capital contribution in any proprietary or partnership concern in India provided the firm or the proprietary concern is not engaged in any agricultural/plantation activities or real estate business or Print Media on non-repatriation basis subject to the certain conditions.
NEW ISSUES OF SHARES/DEBENTURES OF INDIANS COMPANIES: NRIs as been ranted general permission to subscribe to the shares/convertible debentures of an Indian company on non-repatriation basis, and to an Indian company to issue shares or convertible debentures by way of new/rights/bonus issue to NRIs on non-repatriation basis provided that the invitee company is not engaged in agricultural/plantation activities or real estate business (excluding real estate development i.e. development of property or construction of houses) or chit fund.
5. Other investments by NRIs without repatriation benefits:
· Investment in Non Convertible Debentures
· Money Market Mutual Funds
· Deposits with Companies
· Commercial Papers
NRI can also, without any limit, purchase on non-repatriation basis dated Government Securities, treasury bills, units of domestic mutual funds, units of Money Market Mutual Funds.
However, NRIs are not permitted to make Investments in Small Savings Schemes including PPF.

NRI Marriages, whether safe?

2009-09-29T04:44:00.000-07:00

There was a time when the parents of girl wished their son in law to be somebody overseas earning lot of money and having bright career to give their daughter a life full of comfort and happiness.
The trend of NRI marriages became popular mainly in Punjab, Gujarat and Haryana. As and when the number of such marriages arose, with the advent of time, marital problems showed an extreme curve. The National Commission for Women receives several complaints from women abroad and duped by their NRI husbands. According to NCW nearly 15,000 women are deserted by NRIs in Punjab alone. The number of abandoned brides may range somewhere in 15,000-30,000, there is a large number of cases which are not reported due to fear of social stigma.
Numerous brides still wait for call from abroad but purpose is never solved. NRI grooms get married in India, take away dowry, promise to send ticket for bride and never returns back, instead divorce papers are sent. Some time ago, I saw the news where the relatives of bride were thrashing groom as he had concealed his other marriage. Is this the only resort available for bride’s family? Moreover, NRI brides are forced to compromise over lying, cheating, false promises, divorce, desertion and they become totally helpless due to more vulnerability in foreign country without any financial support.
Problems in marriage can arise, if there is a clash on viewpoints. Sometimes, person is not able to adjust and live up to his/her partner’s expectations. Thus, it leads to financial, sexual or other kind of problems. Problems after marriage include harassment for dowry, concealment of pre-existing marriage, non consummation of marriages. As the marriage is no longer governed by Indian laws, woman’s recourse to justice abroad becomes greatly complicated.
These circumstances can be avoided if people verify the credentials of prospective husbands, including checking their passports, residency status and financial details, voter registration card, social security number, employment record, tax returns and other relevant information pertaining to the three preceding years. Another extremely important thing is to get marriage registered. It should be accompanied with affidavit stating his marital status. Without proper documentation it is very difficult to prove the marriage in courts abroad and this is the reason that many Indian women are forced to live like domestic helps. A major loophole is the non availability of mechanism to serve summons outside India and record evidence abroad in order to get some authentic information before NRI marriages are finalized.
Police and law enforcing agencies in India need to be more sympathetic in dealing with them and FIR reporting should be made possible for the victims ruling out any influence from groom’s family. Private international law should be embraced to deal with disputes in which one of the parties resided outside the country. There should be a comprehensive regulation to ensure that all the protection to Indian women with regard to -marriage, divorce, maintenance, inheritance and custody of children are applicable to victims of fraudulent NRI marriages as well. Alertness and awareness is the need of the hour. Lives of thousands of brides to be can be saved by strict legislation, amending laws and supporting those who need our help.

PIO CARD-THE CONNECTING BOND

2008-01-02T03:40:00.000-08:00

A French scholar Romaine Rolland rightly said “There is one place on the face of earth where all the dreams of living men have found a home from the very earliest days when man began the dream of existence, it is India.”

A considerable population of the Indians exists in Gulf regions, Mauritius, East Africa, Australia, and Canada. About 1.1 million exist in the Caribbean and South American countries. Moreover 1.7 million live in the United States, 3 million in gulf areas and in UK they form the largest cultural community.

Since independence, the Indians settled abroad have been returning to discover new opportunities for interacting with their homeland. These Indians who have settled in the far off lands miss their own country and make every effort to connect with their motherland in some way or the other either by purchasing property or networking with their relatives etc.

Respecting the sentiments of such nationals who want to participate in the development of their country, the Government of India launched a unique scheme on 31st March, 1999 so that they could obtain a dual citizenship. It was revised and renamed as the PIO card scheme in 2002 and came into force on 15th September 2002. This allows visa free entry to the people of Indian origin and gives them the right to enjoy all the privileges enjoyed by (NRIs) including the purchase of non-agricultural land.

Indian passport holders, the spouses of Indian citizens or PIO card Holders, people whose parents/grandparents/great grandparents were born or permanently residing in India and other territories that became part of India thereafter are eligible for applying for this card, provided neither of these people were the citizens of any other country specified by the Central Government. It would not be issued to people of Indian origin living in Pakistan and Bangladesh. Moreover, these provisions should be in confirmation with the Government of India Act, 1935. These eligible contenders apply for the issuance of the card in the Indian Mission of the country where they are residing, and the same is authorized by an officer notified for the purpose or the Joint Secretary of the Ministry of Home Affairs. All the applications for issue or renewal of a PIO Card are to be made in the prescribed formats and accompanied by documentary evidence to show that the applicant is a person of Indian origin as defined.

The PIOs enjoy several economic, educational and literary benefits under the purview of this scheme. It is not mandatory for them to carry visas on their visits to India. If the continuous stay does not exceed 180 days then there is no need to register with the Foreigners Registration Officer however if the stay exceeds 180 days, then the registration is required to be done within a period of 30 days of the expiry of 180 days.

The PIO card holders also avail the services and future advantages available to the NRIs like: holding, acquiring, transferring and disposal of immovable properties in India except agricultural and plantation properties, admission of students in educational institutions including colleges and schools in India under the general category quota for NRIs and benefiting from various housing schemes of Life Insurance Corporation of India, State Governments and other Government agencies. They can purchase shares up to 5 per cent of the paid-up capital of an Indian company. However, they are not allowed to enjoy political rights in India. If someone has done some exceptional work associated with the development of the country or its infrastructure then a Gratis PIO card is issued in their name as a compliment to the effort exerted on their behalf.

Granting PIO cards and Overseas citizenship to Indians has certainly lent a hand in restoring and reinforcing the emotional bond amongst these Indians with the land of their origin and has encouraged the social and cultural development of their own country.

Indian Real Estate- A popular option for NRI’s

2008-01-02T03:23:00.000-08:00

Sushil Kumar, a Non-Resident Indian based in Austin, Texas bought a 1000 sq feet flat in New Delhi, India costing Rs. 35 Lakhs in 2004. At that time he was upset with the fact that he was over-paying for it but today he not only has the worth of the flat more than double, however in addition to this he is truly elated that this real estate investment is giving him such good return. This example very clearly sums up the Indian Real Estate Market of today. According to the recent trends, the Indian property market is not only flourishing, but growing by leaps and bounds. Research data estimates that the Indian Real Estate Market is expected to grow from the current 14 billion dollars to 102 billion dollars in the next 10 years.
After the September 11 incident in the US, investments in Indian markets have gained momentum. India has encouraged Non Resident Indians (NRI’s) and Foreign Investors by giving them tax incentives and relaxation of foreign direct investments (FDI) rules. The RBI has further relaxed the rules for NRI’s with respect to returning of foreign exchange in real estate investments. In addition to being one of the safest destinations, India now offers 15 to 25 per cent returns which are conceivably the highest in the world. Mumbai alone accounts for 30 percent of the Indian real estate business in India.
India’s market potential
1. It is the fifth largest economy in the world (above France, Italy, the United Kingdom, and Russia)
2. It has the third largest GDP in the entire continent of Asia.
3. It is also the second largest among emerging nations.

Indian Real Estate sector: Facts and Figures
The Indian real estate has a massive potential demand in almost every segment especially commercial, retail, residential, healthcare, hospitality etc.
Now let us take a look at some of the facts and figures about the retail industry in India.
1. The projected size of the organized Indian real estate sector is approximately USD 12 billion of India's USD 600 billion economy; which is just 2% less as compared to the mature economies of the world.
2. Relaxation of the FDI rules has brought about capital gains in almost every sector of Indian economy. The government is also making efforts in removing the strict guidelines of FDI so that the system becomes NRI friendly.
3. An estimated 30% growth has been observed in the retail sector last year, due to the relaxed FDI norms and the connected growth drivers. It has been estimated that by 2010 the Indian real estate sector would be between somewhere between USD 45-50 billion
4. Real estate sector has the potential to reach the target of USD 90 billion in 10 years.
5. The real estate prices these days are already on the upswing in all markets across sectors since the last two years.
Foreign Investment (FDI) in Real Estate Sectors in India
Initially only NRI's and PIO's were the only ones who were allowed to invest in housing and real estate sectors. Foreign investors except NRI’s were permitted to invest only in the improvement of integrated township projects and that too through a wholly-owned subsidiary or a joint venture company with a local partner.

In 2005 the Indian government fully opened the FDI in real estate. However, the rules framed later limited the minimum capitalization of $10 million for a wholly-owned subsidiary and that of $5 million for a joint venture company mandatory. In addition to this in March 2005, the Department of Industrial Policy and Promotion allowed FDI in real estate projects in a minimum area of 25 acres.

The finance ministry has also allowed external commercial borrowing (ECB) in real estate projects concerning townships spread in an area of 25 acres or 50,000 sq m. However, this has not yet been notified by the RBI. In the present situation, the government has allowed FDI in real estate, but does not sanction foreign institutional investment. Nevertheless, the government is going to remove the gap in the meanings of FII and FDI and is also planning to levy the same rules for both types of investments.
NRI’s can now purchase, rent and transfer residential/ immovable property in India. However, the set of laws do not permit the NRIs and PIO’s to attain property like agricultural land, cultivated area and farm houses in India. However they can take the rental income of the property situated in India.
The NRI/PIO can use their own funds to buy immovable property; excluding the option of availing home loans from banks for this purpose. The NRI's ‘own funds’ refer to the money received in India by way of private transfer of funds from abroad, out of the income earned there including the personal savings outside India. These funds can be transferred through Non-Resident External (NRE), Non-Resident Ordinary (NRO) or Non resident foreign currency bank accounts.
Moreover, they can dispatch earnings from sale outside India for a maximum of two properties held here without taking any permission from RBI. The transfer of funds for subsequent properties requires RBI's approval. In case the property is bought from an Indian account, the remittance depends entirely on the nature of the holding period of the property. The various sectors in which investments in the real are done are the following:
Residential (Housing): The mortgage rates lowered from 18% to 8% in the last 5 years.
Commercial (Office space): the leasing in IT space is booming with 12 million sq ft leasing in Bangalore, 7.7 million sq ft in the National Capital Region and 6 million sq ft in Mumbai in 2007.
Retail (Shopping): Organized retail, which constitutes 2 % of the USD 200 billion sector, is expected to grow from USD 4 billion to USD 15 billion by 2010.
Hospitality (Hotels): Domestic and International investors are planning to invest in 3 and 4 star category hotels as India will require 75,000 to 1, 00,000 rooms in the next 5 years. Doe to the Commonwealth Games coming up in 2008 there will be a greater need for top class hotels to cater to the urgent need of rooms to vacate the teams and the viewers. Many international hotel chains like Hilton, Clariges, Radisson, Le Meridian etc. are expanding their hotel business in India and are purchasing large areas of property to construct 5 star hotels.
Other areas where the real estate business is coming to India are in the building of resorts, hospitals, educational institutions, recreational facilities, Special Economic zones etc.

Conditions for Foreign Investment in Real Estate Sector in India
Foreign Direct Investment in some of the areas (not all) is subject to some conditions, some of which are stated as follows:

1. The development of a minimum land area of 10 hectares for housing plots, and a minimum developed area of 50,000 sq m in case of construction projects is necessary. ‘Built-up’ or ‘developed’ is not properly defined but FSI (Floor Space Index) or FAR (Floor Area Ratio) can be used as the source for the same.
2. To fulfill the minimum capitalization limit of $10 million for a wholly-owned subsidiary and $5 million for Joint Ventures is the mandatory requirement and these funds should be brought in India within six months of the initiation of business (as defined in the contract).
3. To complete 50% of the project work in the time period of five years from the date of receiving all clearances.
4. Not to sell undeveloped plots i.e. without any infrastructure, to provide proper facilities and to obtain a completion certificate from the local body concerned before clearance. But in reality this process takes a long time and the certificates are issued at a very later stage which leads to uncertainty and an excess expenditure on the construction.
5. The original investment should not be sent back before three years from the completion of minimum capitalization. If this process is to be quickened then the prior permission of the Foreign Investment and Promotion Board should be sought.
6. The investments should be done in confirmation with all applicable local and state laws, and all rules and regulations should be followed to the fullest possible extent.
Reasons for investing in India
There are various reasons for foreign investors to invest in the real estate in India. 5 main reasons have been discussed here.
1. Resilience
It has been 20 years since the reforms in the Indian economy have begun. There have been various developments and the main amongst them are; the opening up of the economy to investments abroad, amplification of the domestic financial system, validation of interest and exchange rates, liberal approach for imports, a more favorable atmosphere for investing in business, and the services for the community as a whole.
This buoyancy is clearly evident from the fact that the standard economic growth rates have moved up (8.2% in the financial year ending in March 2006) and India is emerging as one of the top budding economies in the world. The change in the government has also not blocked growth entirely; in fact this has boosted the economic growth further.
2. Improved focus on agriculture and infrastructure
In the present times there has been a constant focus on agriculture (which accounts for about 22% of the economy) and infrastructure. This focus on agriculture and other associated activities, which ropes approximately 65 percent our country’s population will provide a new drive for economic growth.
3. Benefits of foreign direct investment
Although currently the FDI investments have stagnated but its worth can never be lost. The FDI not only enhances domestic capital and supports increase in the prolific capacity of the economy; it also provides an exposure to the world class and top-quality equipment, services, processes, goods and jobs.
4. The global outsourcing boom
Each time one discusses about outsourcing, the Indian business process outsourcing companies strike our minds. Mostly the afterthought is that BPO is a call centre, but in reality there is a lot more to this industry. Opportunely, India is benefiting from this business on a large scale.
Some examples of the work coming to India in this sector is: research and improvement of a variety of products and services which include pharmaceuticals also, merchandizing of automobile parts and the entire IT networks. Due to the efficient services of the Indians in this field and the growth in the satisfaction levels of the clients there is a lot of work coming in this sector to India soon.
5. Well-synchronized and deep money markets
The Indian stock markets which include banks and mutual funds are well synchronized by the Securities and Exchange Board of India and the RBI. Although the procedure suffers from many irregularities e.g. the culprits of the 1992 and 2000 scams are still being traced, but on the whole the functioning has improved dramatically now.
To conclude we can say that, this is not going to be a cakewalk in any sense. It's not an easy task to do business in India; rather it’s really problematic finding appropriate associates who have alike long-term objectives, since most firms are small-scale and family run. Margins have already dropped and majority of the real estate finances are targeting returns between 25% and 30%, but they can go down to 20% any time. Therefore it is very important for the government to monitor and support the real estate market so that the shortcomings and the loopholes which are being observed in the present can be eliminated to the fullest possible extent.
In spite of all the above fears, all agree that the potential of India's real estate sector is colossal. It is one of the most sought after markets for two main reasons. One, with a population of over a billion, the openings are numerous; no other market is witnessing this sort of development both in business as well as housing markets. Two, the industry has an average rate of return of 30% and it will not be a surprise if the local developers achieve an IRR of as much as 50%. Clearly, India is one of the toppers in the list of competitors in real estate in the world.

NRI Facts

2008-01-02T02:49:00.000-08:00

Patel most common Indian surname in US

The US Census Bureau study found that Patel, ranked 172nd, is the most common Indian surname in America. A total number of 145,000 Patels are in the US.The study was based on returns from the 2000 census that takes place every ten years, with the Western name Smith taking the top position.The second most common Indian last name was Singh, its overall ranking was 396th, with 72,642 Singhs in the country. Singhs are Sikhs and also Hindus with roots in states other than Punjab.Khans ranked at 665th, but Khans come from Pakistan and Afghanistan as well as India.Shah ranked at 831, Sharma at 2247, Kumar at 2293 and Desai at 2540. Guptas, Reddys, Mehtas and Raos brought up the rear.The growth of the Indian origin population was the highest among all Asian origin groups. From 820,000 in 1990 it rose to 1.6 million in 2000 and is the third largest Asian American group in the US.

Indian Diaspora is largest in globalized world

More than 20 million Persons of Indian Origin and some 6 million Non resident Indians are spread over 136 countries, making the Indian diaspora the largest in the world.More than 40 percent of the population are from the diaspora in Fiji, Mauritius, Trinidad, Guyana and Surinam. In Southeast Asia, Malaysia leads with 7.3 percent of its population being from India.The situation in Malaysia however is disturbing, with divisions along racial lines, reinforced by religion, culture, language and occupation. Thousand of Indians returned to India after racial riots in 1969. In 2003 a number of Indian IT professionals were maltreated by Malaysian authorities. Over 40 percent of serious crimes in Malaysia are committed by Indians, who also have the highest suicide rate and cases of domestic abuse and deliquency abound.

India Now Festival starts in London

Kicking off a summer of celebrations marking London's links with India, Mayor Ken Livingstone sailed down the River Thames alongside a custom built replica of the Taj Mahal.The three month festival will feature 1,500 events focusing on Indian art, theatre, food, fashion, music, dance, film and will have an economic slant as well.Mayor Livingstone acknowledged India as an emerging economic superpower, and an important nation with an important culture. He stated London is aiming to strengthen its ties with India and lent his support to a festival tour of London promoting the time spent in the city by Mahatma Gandhi, starting in 1888, when lived in Tavistock Street, Covent Garden, the inner temple and Farringdon Street during his years training as a barrister. Livingstone will visit India in November to demonstrate the interest in the city's relationship with India.Of London's population, over 430,000 are of Indian origin. India is the second largest country with inward investment projects in London. 212,000 Indians visited London in 2006. 4,000 students study in London contributing 60 million pounds to London's economy.

Hindu followers in Australia double

The '06 census by the Australian Bureau of Statistics confirmed that followers of Hinduism in Australia have doubled since 1996 and now comprise 0.7 percent of the total population.Budhists have also doubled to more than 2 percent, Islam followers make up 1.7 percent and Judaism 0.4 percent. Christians remained the largest group.

Emigration from India started over 2,500 years ago !

The emigration of people from India has been recorded as starting over 2,500 years ago when adventurers travelled by sailboat to the shores of Africa, South East Asia and the Far East. The voyagers negotiated the ocean waters to venture to Java, Sumatra, Cambodia, Vietnam, Bali and the Philippines tackling the monsoon winds and taking with them to their new lands, a rich contribution of culture, calligraphy, methods of cultivation, handicrafts and new industries, all in the calmness and peace of the time. Later the abolition of slavery prompted the occupying European countries of England, Holland, France, Portugal and Spain with their accompanying military forces, to move Indian labour to the sugar plantations of Jamaica, South Africa and Mauritius, and builders of the Kenya Railway were sourced from the Punjab. Farmers were needed in Canada and were taken there from the Punjab around the 1930s.
Further along history Britain and the US needed factory workers and skilled professionals and admitted Indians in substantial numbers from the 1960s onwards.Most recently at the end of the twentieth century Indian info tech workers went over to fix the dreaded Millennium Bug in computer systems, followed by thousands of IT professionals. This is the new generation of the Indian diaspora who continue to maintain their links with India through their way of life, culture, food and religions.