"The government should act before these properties turn into a hub for drugs and prostitution," the Congress leader said, adding that the foreigners are debarred from purchasing properties in India unless he/she is running business in the country.
He had served as the MoS for External Affairs between 1991 and 1993.
Faleiro claimed that the National Security Council Secretariat (NSCS) has cautioned that the real estate projects by foreigners in Goa might be used for drug trafficking, gun-running and prostitution.
Faleiro also demanded that the state government should bring in a legislation selling land in the coastal state to non-Goans.
"When we speak of the special status to the state, this one legislation will help us protect our identity and culture," he said.