Here is a crazy rule being enforced in India; retiring foreigners are not allowed to settle in India. With the globalization of Indian commerce (and way of living, to some extent), this will be the case often. Plus these retirees end up spending their dollars and pounds in India and contribute to the local economy.
This is especially bad for states like Goa and Kerala which can have the cultural, tourism and spiritual background to support retirees of non-Indian origin. The main issue in these cases seems to be purchase of land by foreigners which is not allowed under Indian laws.
Maybe there can be restrictions, but there cannot be a ban. I am guessing that this does not apply to persons of Indian origin. Because soon there will be tons of British and US citizens retiring back to India(and doing social work). Either way, retirees should not be stopped this way; maybe a new visa type can be arranged to take care of this. Maybe properties can be marketed to them for rent once the rules are sorted out favorably.