KOZHIKODE: Non-Resident Keralites (NRKs), who have invested heavily in farm lands, plantations and agricultural properties in the state by violating rules, are feeling the heat as the Enforcement Directorate (ED) has put its foot down.The ED has launched a major operation in the state to collect the financial transactions of the offenders under the Foreign Exchange Management Act (FEMA).
Two NRKs – a husband and his wife from Kuttiyadi in Kozhikode — were the first to face the music, with the ED started gathering details of similar property dealings in the state. As a warning, the couple were fined Rs 6 lakh for purchasing 18 acres of rubber plantation for Rs 1.5 crore and 5.5 acres of farm land for Rs 13.55 lakh during 2010-11.
ED Deputy Director V Praveen told Express the department was closely monitoring the situation.
‘‘We've started monitoring the development closely as intelligence inputs reveal a considerable number of NRKs are purchasing plantations and farmhouses by violating rules,’’ said Praveen.The official said the ED had the provision to attach the said properties.‘‘NRKs should be aware of EMA rules. They can purchase land and buildings, but not plantations and agriculture lands,’’ he said.
As per Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations, 2000, a person residing outside India who is a citizen of India may acquire any immovable property in India other than agricultural/plantation/farm house, and transfer any immovable property other than agricultural or plantation property or farm house to a person resident outside India who is a citizen of India or to a person of Indian origin resident outside India.‘‘The rule is clear and any violation of it by NRKs will be considered seriously," said the officer.