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FOREIGN DIRECT INVESTMENT UNDER THE DIRECT RADAR OF DIPP

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The department of industrial policy and promotions has decided to launch supervising group to bring the foreign direct investment under its radar. According to the source saying at the website www.propertykhazana.com the initiation is to make sure funds are utilized legally and company is not using it for other purposes. This is quite strange as it is done at that time when the government is trying to remove the lid relating to the investment by foreign companies.
There have been raids all over the country by the enforcement directorate (ED) on a famous Delhi based real estate player. He revealed that there are huge FDI violations in the purchase of the land. The company has huge acres of land approx 12,800 acres, and 8,700 acres is agricultural lands. The Enforcement Directorate claimed that most of them were acquired by the FDI, which was flouting the existing rules. According to the sources saying at the www.propertykhazana.com, some developers are using the money from FDI to achieve their means and ends, like purchasing agricultural lands though the law of land does not permit this.
Meanwhile, Foreign Investment Promotion Board, the agency which approves the foreign investment gave red signal to application from Vatika-Wachovia Corporation of the US, even though the subsidiary WDC has invested in the developer who belonged to Delhi, seeking to retain the projects so that they do not confirm with the FDI rules in the real estate sector.
In another situation, FIPB, gave a red signal to a proposal which was given by Keppel-Puravankara Development, in which Singapore based company Keppel, is holding 55% and they would like to sell approx 1.5 acres of undeveloped land to set up an integrated township in Bengaluru. For more and latest real estate updates follow www.propertykhazana.com.
Source: NBTVLIVE

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