Jose Colaco asks: 1: Do guidelines (as in the RBI guidelines) constitute the law? 2: What if the property was purchased before the FEMA, 1999.came into effect?
Marshall Mendonza's Response: 1. Guidelines have the binding force of law. 2. FEMA, 1999 is the successor to FERA,1973. FERA was far more stringent as compared to FEMA which was watered down quite a bit. I will need to research and come back. ----------further response------------ Dear Marshall .....Thank You.....I am sure you are right.....Even so Let me re-submit Q 1: while the RBI guidelines are binding upon Banking institutions and borrowers, transferrers of funds et wrt allied Banking Matters, DOES the RBI, per se, have the legal right to determine the purchase and transfer on land and its relationship to Visa etc ? IF SO .....which Statute / Ratio in Judgment / supplemental regulation are we referring to? It cannot be, I submit that the transfer of a (foreign) person's ( FP ) funds is approved by the RBI (obviously), the FP is relieved of the funds and THEN the transaction is held invalid. That and the 'engineered' visa duration. Something is really OFF. jc
