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FDI will be under strict orders of Govt. body

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The recent terminology in the FDI norms has come up with a strict bench keeping an eagle’s eye on the overseas funds. According to a recent source of www.propertykhazana.com, department of industrial policy and promotion (DIPP) will be setting up a unit to scrutinize the funds of the overseas sanctions for their use in some other segment violating the FDI standards. “The entire realty house has to tame a nod from the govt. authority before continuing their projects with any overseas partners or at the case of Special purpose vehicle” as stated by a senior official at the www.propertykhazana.com.
The sole decision was taken after a close watch by the DIPU which found many Indian diverting the funds for other uses rather than the sanctioned sections as per the source of www.propertykhazana.com. In the cases of allowing the projects under non FDI norms keep on hold till the overseas financial assistance arrive then it will be violating the Press note 2 of 2005 guidelines. According to this there should be minimum capital and other norms of the area to give green signal to the inflow of the foreign aid.
A suggestion is proclaimed by the FIPB for monitoring the foreign investment in India after it gets approvals from the authorized body. For example Wachovia of US has made investment in Indian Vatika being the subsidiary and it should maintain all the transactions only for the Vatika products in Indian according to the FDI policies. For more and latest Indian real estate updates visit www.propertykhazana.com.
Source: NBTVLIVE

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