Who is an NRI and what are the problems faced by NRIs in India?

Legal tangles and convoluted laws are only some of the issues. The others are structural, filled with corruption and from the complexity of dealing with various government departments.

by PRANSHI AGARWAL - August 7, 2021, 4:06 am

NRI (Non-Resident Indian) is an Indian citizen but stays outside India under circumstance with the intention for an uncertain duration of stay abroad. and holds the Indian Passport. A person is considered NRI if he/she is not in India for 182 days or more during financial year or if he/she is in India for less than 365 days during 4 years preceding that year and less than 60 days in that year as in India large scale migration began during the British rule as indentured labourer to former colonies. The word NRI was not defined anywhere in the Indian Laws directly, it is explained by other ways in Income tax Act, FEMA Act. Non- Resident Indian is not directly defined in Income Tax Act. Income Tax Act contains a detail criterion of who is considered as a Resident in India and provides that anyone who doesn’t meet these criteria is Non-Resident as prescribed in Section 6 of Income Tax Act, 1961

NRIS CAN BE DIVIDED BASICALLY INTO THREE MAIN CATEGORIES

An Indian citizen staying outside India for some business or for employment or for any other purpose the circumstances indicating an indefinite period of staying abroad.

An Indian citizen staying outside India for working on temporary assignment with foreign government agencies like United Nations Organization (UNO), International Monetary Fund (IMF) Fund, World Bank etc. and are required to say there till the completion.

An Indian Citizen who are the Officials of State and Central Government and Public sector undertaking working outside India on temporary assignments or are being posted to their offices, including Indian diplomat missions, abroad.

PROBLEM FACED BY NRIS IN INDIA

The migration resulted in substantial drop in the supply of professionals for running institutions and organizations in the territory of India.

Remittances are not always used for beneficial purposes. For instance, India face problems due to foreign funding for extremist movements like the Khalistan movement.

Major problem faced by NRI’S that NRI’S are not allowed to set up their firms directly in India due to which India is not able to take advantage of their entrepreneurial skills.

System of E- Migrate and the Policy of Minimum Referral Wages have been detrimental to India as Companies now find it easier to hire labor from countries like Pakistan and Bangladesh.

Poor schemes impacting the growth of India.

PROBLEMS RELATED TO OVERSEAS INDIAN MARRIAGES

The problems in Overseas Indian Marriages are complex in nature and the incidents of failed and fraudulent marriages of Indian women with NRI’S are increasing day by day. The overseas Indian Marriage are governed by Laws of Foreign Land and Private International Law. The major problem faced by Indian women is the ex- parte divorce and the discretion and have been articulated in several forums in the media. The common problem/issues relating to overseas Indian i.e., NRI marriages being faced by Indian Women Include:

Abandonment of the Wife for Various reasons

Domestic Violence

NRI husband already married

The Continuing demands for dowry which is continued till pre and post marriage

The soften legal System outside India in respect of grounds for divorce etc.

PROBLEMS FOR NRIS REMITTING SALARY TO INDIA

There is an ardent invitation from the Government of India for the NRIs to invest in India.

Legal tangles and the Convoluted Laws are only some of these. The others are structural, filled with corruption and from the complexity of dealing with various government departments.

Economies outside India are far more transparent and broader. Thereafter, among 190 nations, India ranks 63rd in ease of doing business, and that is 14 places ahead of where it was two years ago. It is most difficult for the NRIs to invest in India.

Indians who worked outside India invest their money back home. These reimburse from Non-Resident Indians are allowed us to bridge the foreign exchange deficit caused by our unbridled love for gold. The government has also ensured the tax law facility and remittance investments in India. The Merchant navy personnel Case (called ship pies in Local jargon) They serve on Indian and Foreign ships in international waters and are usually away from more than six months in a year they are classified as Non-Residents under Income Tax Act.

In most they have no residence anywhere else in the world other than India. And are being entitled to dollar salaries, which is paid to them from outside India into any bank account which is anywhere in the world.

Beside shippers, Indians working in countries with foreign currency restrictions, such as countries in Africa, face a similar problem as many ask their employers to remit these monies directly into their Indian NRE accounts. They face the same issue.

HIGHLIGHTING THE COMMON PROBLEM FACED BY NRIS WHEN INVESTING IN INDIA

Lack of Transparency in Land Records

Dubious Promoters

Illegal Possession

Tax Implications

Education System

Issue also results in Property Transfer, repatriation of funds, Complexities of residency status, and several more issues.

The Women and the Man of this land with different personal laws have migrated and are migrating to different countries either to make their permanent abode there or for temporary residence. Thereafter, there is also an immigration of the nationals of other countries. The advancement in communication and transportation has also made it easier for individuals to hop from one country to another country. It is also not unusual to come across cases where citizens of this country have been contracting marriages either in this country or abroad with nationals of others countries, or having married here, or themselves and either both or one of them migrated to other country. There are also some cases where parties are married there and have been either domiciled or residing separately in different foreign countries. The migration Temporary or permanent has also been giving rise to various kinds of matrimonial disputes destroying in its turn the family and its peace.

The bride having a fear due to the runaway of foreign country resident Indian spouse and the stressed non- Resident Asian Parent frantically searching spouse in India as their children are separated by the order of foreign courts and the parents seeking for child maintenance from the court and the non-residence spouse seeking enforcement of foreign divorce decree in India, trying to seek the transfer of property in India for the child of deceased non Resident Indian and its repatriation to foreign shores, troubled and anxious and the for the adoption of child the foreign parents are trying to solve the problem by Indian Legal Formalities, bewildered officials of a foreign High Commission trying to understand the Customary practices of marriage and divorce and can be exclusively saved by Indian Legislation. The Foreign Officials of Police are trying to understand intricacies of the Indian Law and in apprehending the offenders of law on foreign Land.

Some instances of problem arising every day from Cross- border migration.

There have been a large number of Legal issues arising those concerns most of the section of the Global Indian Community residing outside India. The lure of settling up in foreign jurisdictions attracts a sizeable Indian Population but the main issue i.e., problems created by such huge migration largely remain unsolved at a larger extent.

Highlighting the ways through which the problem faced by NRIs can be solved to a larger extent.

A provision to be made for compulsory registration of marriage.

Dissolution of marriage on the ground of irretrievable breakdown of marriage be introduced in the Hindu Marriage Act, 1955 and Special Marriage Act, 1954.

the additions to be made in the Hindu Marriage Act, 1955 and the Special Marriage Act, 1954 to provide the provisions for maintenance and alimony of spouses of the child custody and for the settlement of matrimonial property for child support where any one of the spouses is an NRI.

In the matter of succession i.e., transfer of property, repartition of NRI funds, etc. The respective State Governments must simplify and streamline procedures so that the problem faced by NRIs can be solved.

The commission has already recommended in its 218th Report as to the need accede to the Hague Convention on the Civil Aspects of International Child Abduction.

The Procedures for the Inter- Country child Adoption must be simplified and be much easier a single uniform legislation must be provided for in the matter of adoption of Indian Children by NRIs. The convention on Protection of Children and Co- operation in respect of Inter- Country Adoption was signed by India on 29th May 1993. Thus, a simplified law should be enacted on the subject in the light of Convention.

Solicitors and litigants overseas worldwide frantically look for professional opinions and advice when the problems come to the Indian resident abroad. However, application of multiple laws and their judicial interpretation and other legal formalities often lead the problem unresolved even though the remedies partially exist in Indian Law and partly need new urgent Legislation.

The Procedures for the Inter- Country child Adoption must be simplified and be much easier a single uniform legislation must be provided for in the matter of adoption of Indian Children by NRIs. The convention on Protection of Children and Co- operation in respect of Inter- Country Adoption was signed by India on 29th May 1993. Thus, a simplified law should be enacted on the subject in the light of Convention.

Solicitors and litigants overseas worldwide frantically look for professional opinions and advice when the problems come to the Indian resident abroad. However, application of multiple laws and their judicial interpretation and other legal formalities often lead the problem unresolved even though the remedies partially exist in Indian Law and partly need new urgent Legislation.