discrete subgroups of Lie groups and actions on homogeneous spaces Let $\Gamma$ be a discrete subgroup of a connected finite dimensional Lie group $G$. Let $K$ be a maximal compact subgroup of $G$ and denote $X=G/K$. It is well-known that $\Gamma$ acts properly on $X$ via multiplication on the left.
Now suppose that a discrete group $\tilde{\Gamma}$ contains $\Gamma$ as a finite index subgroup (I'm not assuming that $\tilde{\Gamma}$ is a subgroup of $G$.)
When can the action of $\Gamma$ on $X$ be extended to a proper action of $\tilde{\Gamma}$ on $X$?
Can you give an example where this is not the case?
Edit: Let my emphasize that I only require the action of $\tilde{\Gamma}$ on  $X$ to be proper (i.e. any continuous action with discrete orbits and finite point stablizers). I am not asking whether $\tilde{\Gamma}$ is a subgroup of $G$. The action of $\tilde{\Gamma}$ on $X$ is allowed to have a finite kernel.
Thanks.
 A: Here is a simple counter-example. Let $p : S_3 \to S_2$ be a degree 2 covering map from the closed genus 3 surface to the closed genus 2 surface, inducing an index 2 injection $p_* : \pi_1(S_3) \to \pi_1(S_2)$. Pulling back any hyperbolic structure from $S_2$ to $S_3$ via $p$ defines an embedding of Teichmuller spaces $p^* : T(S_2) \to T(S_3)$, the domain having dimension 6 and the range having dimension 12. Pick a point in $T(S_3)$ which is not in the image of this embedding nor in any translate of the image under the action of the mapping class group $MCG(S_3)$ on $T(S_3)$. This point represents a discrete subgroup $\Gamma \approx \pi_1(S_3)$ of $Isom(H^2) = PSL(2,R)$ such that, under the index 2 inclusion of $\Gamma \hookrightarrow \tilde\Gamma \approx \pi_1(S_2)$, the action of $\Gamma$ does not extend to an action of $\tilde\Gamma$.
ADDED AFTER INITIAL COMMENTS: The OP has clarified that he intends only to ask about the existence of topological actions of $\tilde\Gamma$, in which setting this is not a counter-example as pointed out by Yves.
However, in the other direction, rigidity theorems apply to give many interesting positive examples. For instance, suppose $\Gamma$ is a uniform lattice in $Isom(H^n) = SO(n,1)$, $n \ge 3$, meaning a discrete cocompact subgroup. If $\tilde\Gamma$ is a finite index supergroup of $\Gamma$, and if $\tilde\Gamma$ has no finite normal subgroups, then the given isometric action of $\Gamma$ extends to a faithful isometric action of $\tilde\Gamma$.
To prove it, since $\tilde\Gamma$ is quasi-isometric to $\Gamma$ which is quasi-isometric to $H^n$, applying the Sullivan-Tukia quasi-isometric rigidity theorem for $H^n$ it follows that there is a cocompact discrete action of $\tilde\Gamma$ on $H^n$ with finite kernel, but we have hypothesized the kernel away so this action is faithful. We now have two discrete cocompact actions of $\Gamma$: the given one, and the restriction of the one on $\tilde\Gamma$ that we got by applying Sullivan-Tukia. We can therefore apply Mostow rigidity and conjugate the $\tilde\Gamma$ action by an isometry of $H^n$, so that its restriction to $\Gamma$ agrees with the given $\Gamma$ action, and we are done.
Basically the same argument will work whenever the symmetric space satisfies Mostow rigidity and some reasonably strong form of quasi-isometric rigidity, which is true of just about every symmetric space associated to an irreducible semi-simple Lie group (except for $SL(2,R)$ of course).
And if it is OK for the action to have a finite kernel, then just drop the hypothesis that $\Gamma$ has no finite index normal subgroup, and the same argument still works.
ADDED AFTER FURTHER COMMENTS: See Misha's comment for an improvement on this argument that avoids QI-rigidity altogether, using solely Mostow rigidity.
A: Take $\tilde{\Gamma}$ to be a higher genus Baumslag-Solitar group, see section 9 of 
M. Kapovich, B. Kleiner, Coarse Alexander duality and duality groups, Journal of Differential Geometry,  Vol. 69, (2005)  Number 2, p. 279-352. Group $\tilde\Gamma$ cannot act properly discontinuously on any contractible 3-manifold, but it contains a finite index subgroup $\Gamma$ which is is Gromov-hyperbolic and isomorphic to the fundamental group of a compact 3-manifold with boundary. Hence, by a corollary of Thurston's geometrization theorem, $\Gamma$ acts isometrically and discretely on hyperbolic 3-space, i.e., is a discrete subgroup of 
$G=PO(3,1)$. 
Edit: Here is an easier example. Note first that every finite group admitting an effective topological action on $R^2$ is either cyclic or dihedral. (B. von Kérékjártó, Über die endlichen topologischen Gruppen der Kugelfläche, Nederl. Akad. Wetensch. Proc. Ser. A vol. 22 (1919) pp. 568-569: There is probably a more accessible reference for this result, but I do not have one.) Now, take, say, a simple noncyclic  finite group $F$ and set $\tilde\Gamma= F *  F$. Then $\tilde\Gamma$ is virtually free, so it contains a free finite index subgroup $\Gamma$, which embeds in $PSL(2, R)$. On the other hand, every topological $\tilde\Gamma$-action on the plane has to be trivial since each free factor has to act trivially. 
A side note: If you are willing to replace the symmetric space $X$ with the $n$-fold product $X^n=X\times ... \times X$, then every isometric action of $\Gamma$ extends to an isometric action of $\tilde\Gamma$ on $X^n$ (where $|\tilde\Gamma:\Gamma|=n$): This is the induced representation construction. Incidentally, the following is an open problem:
Let $\Gamma$ be a discrete isometry group of hyperbolic $n$-space $H^n$ and $\Gamma \subset \tilde\Gamma$ is a finite-index extension. Is it true that $\tilde\Gamma$ admits a properly discontinuous isometric action on $H^m$ for some $m$?
