Russian company urges Goa govt not to confiscate its property

PANAJI: A Russian-owned company in Goa has requested the state government not go ahead with the confiscation of their properties as the matter is sub-judice.

The state cabinet decided to confiscate four land plots owned by True Axis Pvt Ltd, as per the directives of the Directorate of Enforcement (DE) for violation of the Foreign Exchange Management Act (FEMA).

Following this, the company, in a letter written to the Goa Chief Secretary, said it has already filed a case against the DE order at the Appellate Tribunal For Foreign Exchange.

Company's lawyer Vikram Varma said the state through various authorities under it had ratified the purchase of the said properties by executing the deeds of sale as well as by providing various permissions and certifications for repair of buildings, their lawful occupancy and other tourism related activities.

The company has plans to construct a hotel project on these properties valued at Rs 1.26 crore located at Mandrem village, 60 kms away from here.

True Axis' property was one among around 400 properties that came under the scanner of DE for violating FEMA.

Varma said the equity for his client has been provided under the 100 percent Foreign Direct Investment policy of the Government of India.

He said the DE in past had directed the company to pay a penalty of Rs 7 lakh along with additional penalty (on its director) of Rs two lakh for violation of various sections of FEMA 1999. Besides, it ordered confiscation of the said properties.