Hi

I have a client who is due to pay a second installment for a house he purchased of me this year.,

The payment is due this month, however i received an email that he cannot pay till march next year, as his bank sent him this message

DUE TO THE CURRENT LIQUIDITY CRISES AND GLOBAL MELTDOWN, THE FALLING INDIAN RUPEE AGAINST THE US $ AND FALLING DOLLAR RESERVES IN INDIA, THE FOLLOWING HAS BEEN STATED BY OUR BANKS: OUTWARD REMITTANCE OF MONEY FROM INDIA TO BE CURTAILED FOR THE TIME BEING FOR NON ESSENTIAL GOODS, ESPECIALLY FOR PURCHASE OF REAL ESTATE, GOLD, SILVER, MUTUAL FUNDS, SHARES, ARTIFACTS ETC.ANY TRANSFER REQUEST WILL BE WITHHELD TILL END OF THE BANKING FINANCIAL YEAR IE 31.3.09, OR UNTIAL FURTHER NOTICE DEPENDING UPON THE DOLLAR RESERVES.

However, i have googled this text and found nothing, also looked on the fedral reserve of India webiste as well as the bank of india,

Can anyone help to clarify if this is true

Many Thanks

If you know his bank from the first installment, contact them..

The first installment was sent via Wire Transfer, but was sent Via Dubai.....

All seems a bit strange to me, thats why i just need help in clarification so i can confront them

Thanks

Looks strange indeed, It would mean that almost nobody would be able to do real business with India this way.

It says that the transfer request will be withheld till the end of the banking financial year.

You could ask him to send you the transfer request, so you can see for your self . Tell them you need absolute and positive proof of this, your lawyer needs it because due to this, you cannot pay your own debts.

Good luck

I worked in India during 1996 and after tried to transfer money I had in my Citibank

account in India to Citibank Australia and it was incredibly bureaucratic , very difficult

and very time-consuming even then so nothing would surprise me under the current conditions

Edited November 13, 200817 yr by midas

Thanks for that...

Will do , as he is contracted to pay ..

will let you know the outcome

Thanks

Does the word reposession mean anything the customer.

Looks strange indeed, It would mean that almost nobody would be able to do real business with India this way.

It says that the transfer request will be withheld till the end of the banking financial year.

You could ask him to send you the transfer request, so you can see for your self . Tell them you need absolute and positive proof of this, your lawyer needs it because due to this, you cannot pay your own debts.

it is not strange at all and has nothing to do with conducting "real business" with India. fact is that even in "normal" times an indian citizen will not get the permission to change INR and transfer foreign currency to buy immobile property abroad. the prospective buyer lied to "Boater" and he should not have problems to change any amount of Rupees into hard currency on the gray market albeit with a loss of 2-3 %.

Looks strange indeed, It would mean that almost nobody would be able to do real business with India this way.

It says that the transfer request will be withheld till the end of the banking financial year.

You could ask him to send you the transfer request, so you can see for your self . Tell them you need absolute and positive proof of this, your lawyer needs it because due to this, you cannot pay your own debts.

it is not strange at all and has nothing to do with conducting "real business" with India. fact is that even in "normal" times an indian citizen will not get the permission to change INR and transfer foreign currency to buy immobile property abroad. the prospective buyer lied to "Boater" and he should not have problems to change any amount of Rupees into hard currency on the gray market albeit with a loss of 2-3 %.

Dear Naam

Thank you for your reply

he should not have problems to change any amount of Rupees into hard currency on the gray market albeit with a loss of 2-3 %.

Did you have an example of how to explain this to him or what company i can refer him to

Thanks naam, as this is very important to me to tie my money over for a good 6 months

Looks strange indeed, It would mean that almost nobody would be able to do real business with India this way.

It says that the transfer request will be withheld till the end of the banking financial year.

You could ask him to send you the transfer request, so you can see for your self . Tell them you need absolute and positive proof of this, your lawyer needs it because due to this, you cannot pay your own debts.

it is not strange at all and has nothing to do with conducting "real business" with India. fact is that even in "normal" times an indian citizen will not get the permission to change INR and transfer foreign currency to buy immobile property abroad. the prospective buyer lied to "Boater" and he should not have problems to change any amount of Rupees into hard currency on the gray market albeit with a loss of 2-3 %.

Dear Naam

Thank you for your reply

he should not have problems to change any amount of Rupees into hard currency on the gray market albeit with a loss of 2-3 %.

Did you have an example of how to explain this to him or what company i can refer him to

Thanks naam, as this is very important to me to tie my money over for a good 6 months

there is not much to explain Boater. every Indian knows the available ways how to transfer money via the gray market. and the chap we are talking has used the gray market making his first payment.

quote: "The first installment was sent via Wire Transfer, but was sent Via Dubai..."

it looks like he either wants to back out or he is short of cash. perhaps he gambled at the indian stock market which is down 50% this year.

http://ichart.finance.yahoo.com/z?s=%5EBSE...amp;a=v&p=s

thanks for that....

and yes he was into that market... so i presume he now has no money and is hoping all will pick up next year.....

well we still have the first payment luckly