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INDIA
TODAY HINDI
CURRENT
ISSUE JANUARY 27, 2003
LIVING: PROPERTY ROW
The Home Conning
As land hassles stem the
flow of NRI investment in Punjab, the Government takes steps to ease the
legal woes of expatriates
By
Ramesh vinayak
It
was a homecoming Gian Singh is unlikely to forget in a hurry. Settled
in Canada since 1970, the affluent transporter flew to India in August
last year with a one-point agenda: to claim his share of ancestral land
at Raipur Rasulpur village in Punjab's Jalandhar district. The 16 acres,
he hoped, would help bring his children closer to their roots. It was
a futile hope. Not only did his brother refuse to part with the land,
but instead registered a case of theft and trespassing against Gian on
what is, as per revenue records, a joint holding. The hapless nri had
to surrender his passport and has since been shuttling between the police
station and the court. Though exonerated of the theft charges, a dejected
Gian says, "There's no justice for nris here." It's a fact more
and more expatriates from Punjab are finding hard to reconcile with. With
real estate prices in the state registering a 100 per cent hike in the
past five years, nris are flocking back home to stake claim to their assets.
But they find themselves embroiled in tedious litigation after being duped
of their ancestral property or one purchased by remitting money back home.
Harchet Singh, a London-based NRI, spent two
years getting one of his five shops in Garh Shankar vacated."The
amendments were a half-hearted measure," he says.
According to a recent survey
conducted by the state Government, at least 3,000 cases involving nris
in property-related disputes are pending in courts. A bulk of these are
in the dollar-rich Doaba region comprising Jalandhar, Hoshiarpur, Nawanshahr
and Kapurthala districts, home to about 1.4 million expatriates.
The Government's concern is not misplaced. The insecurity among expatriates
over their properties-as evident from a flurry of e-mail complaints from
abroad pouring into the chief minister's office-is recognised as a major
hurdle in attracting nri investment. "The nris now see property investments
as a risky gamble," admits Jalandhar MP Balbir Singh. Investment
in real estate, which had spiralled in the post-terrorism Punjab, has
tapered off considerably. Another damper is the Foreign Exchange Management
Act 2000 which has taken away the nris' right of acquisition of agricultural
land. "We cannot have big investments unless the nris feel secure
about their real estate assets in their home state," says Punjab
Chief Minister Amarinder Singh.
The realism notwithstanding, nri properties continue to be prime targets
for the thriving land mafia that works in cahoots with police and revenue
officials and exploits the compulsions of the expatriates: short visits
to the country and inability to pursue the excruciatingly slow-paced judicial
proceedings. "The nris are at a clear disadvantage in protecting
their property rights," says K.K. Sharma, managing director of the
nri Sabha, a Jalandhar-based ngo which espouses the interests of expatriates
in Punjab.
Baljit Singh bains has been shuttling between
London and Garh Shankar for the past six years. "How can I return
to the UK with the legalities going on for years?" he asks.
Nothing exemplifies Sharma's
point more tellingly than the travails of Baljit Singh Bains, a British
national for 42 years. For the past six years he has been shuttling between
London and Garh Shankar in Hoshiarpur, pursuing 35 civil and criminal
cases. Taking advantage of his absence, his sister-in-law fraudulently
sold off Rs 70 lakh worth of prime ancestral land and filed a criminal
complaint against him. Not fluent in Punjabi and unable to tackle corruption,
Baljit is desperate: "How can I return to Britain now when I am neck-deep
in a legal mess which will go on for generations?" Says D.S. Bains,
commissioner of the recently designated Department of nri Affairs: "We
can only lend them a shoulder to cry on. The executive cannot do anything
to ameliorate their land hassles once it becomes a legal dispute."
Two years ago, in the face of intense lobbying by influential expatriates
who are known to fund the state polls liberally, the Shiromani Akali Dal-bjp
government amended the land laws. While Section 9 of the Punjab Security
of Land Tenures Act was changed to enable nris have their agricultural
land vacated by a tenant (only once), the East Punjab Urban Rent Restrictions
Act 1949 helped them get one residential and one commercial property vacated
through a summary trial in the courts. The rider, however, is that the
nri should hold the ownership of such a property for the last five years.
Though hailed as a pathbreaking
shortcut to legal wrangles, the amendments have proved only to be a half-way
house because their ambit is limited to properties where nris have a clear
ownership title and are in dispute only with their tenants.
Parkash Kaur returned from the UK after 10
years to claim her property at Mahilpur in Hoshiarpur. "I'm scared
of the protracted court proceedings," she says.
More often than not it
is the relatives who occupy or fraudulently sell the nris' share by forging
the power of attorney and altering the land mutations in revenue records.
There is no specific law to help nris in the cases of forcible or illegal
occupation of their properties by local caretakers-invariably blood relations.
The amendments cater only to cases of landlord-tenant disputes. "Almost
95 per cent of these disputes relate to the undivided ancestral property,"
says Sharma.
Besides, the relatives exploit the time-consuming procedures to legally
partition the property, with a contested case taking up to 20 years to
decide. Not surprisingly, the Punjab Government is now mulling ways to
simplify procedures on partition of properties. Also under consideration
is a proposal to appoint expatriates who have returned to India as "nambardars"
in the villages having more than 20 nris to guard against the fraudulent
manipulation of revenue records. The underlying idea is to plug the loopholes
that make the expatriates vulnerable.
Evidently, the amendments
have provided a relief to only a section of the nris. But, even the beneficiaries
are not too happy. In the owner-tenant disputes, though the amended law
provides for a speedy trial and immediate possession of property, the
cases are delayed because the lower courts are overburdened.
The NRIs now perceive investments in property as
a risky gamble. Balbir Singh Jalandhar MP
In many cases, the tenants
manage to hang on with delaying tactics as the lower courts grant leave
to contest-a grey area in the amended law. Though a Division Bench of
the Punjab and Haryana High Court has upheld the constitutional validity
of the amendments, the lower courts continue to grant leave to contest
to the tenants after passing a decree in favour of the NRI.
Ostensibly, there is no uniformity in implementation of the law. "The
lower courts are not following the letter of the law," laments Harchet
Singh Bains, a London-based nri who owns a built-up property at Garh Shankar.
Though he won legal possession of his residential property within nine
weeks, it has taken him almost two years to get one of his five shops
vacated. The provision allows only one commercial and one residential
property to be vacated, that too just once. This is another sore point
with the nris. "The amendments were a half-hearted measure to placate
nris," adds Harchet.
Despite the legal hiccups,
more and more nris are moving courts to benefit from the amended laws:
there was a five-fold rise in the number of nris seeking consultancy at
the nri Sabha in the past year. Parkash Kaur has returned from the UK
after 10 years to claim her commercial property at Mahilpur, Hoshiarpur.
"But I'm scared of the protracted court proceedings," says the
66-year-old.
Desperate to gain the nris' confidence over the security of their properties,
the state Government is seriously pursuing its proposal to have some district
courts double up as "fast-track courts" to expedite nri cases.
The Government has decided to approach the chief justice of the Punjab
and Haryana High Court to pursue the move.
These courts will not only bring uniformity in the implementation of the
amended laws but also speed up proceedings in disputes not covered by
the amendments. But until that happens, homecoming will continue to be
a misnomer for many NRIS.
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