Dubai Homes, Hawala Trails: ED Seizes Rs 27.83 Crore Assets of High Net-Worth Indians

In a major crackdown on high net-worth individuals who purchased real estate abroad without informing authorities, the Enforcement Directorate (ED) has seized assets worth ₹27.83 crore in two separate cases under the provisions of the Foreign Exchange Management Act (FEMA).The ED said on Wednesday that, based on specific intelligence, searches were carried out at premises linked to high net-worth individuals residing in India who had made investments in real estate in Dubai. “The properties in Dubai were purchased through illicit banking channels and hawala routes. Foreign assets, including immovable properties in overseas countries, were acquired in contravention of FEMA,” the ED said.The anti-money laundering probe agency said Kapil Aggarwal

and Sangeeta Aggarwal had purchased ten properties in Dubai valued at AED 1,94,03,975 (approximately ₹34.14 crore). “These properties were acquired without any corresponding outward remittance from India through authorised banking channels.They also failed to furnish documentary evidence regarding the source of overseas funds used for the acquisition of these properties, as well as any approval from the Reserve Bank of India (RBI) for acquiring foreign assets abroad,” the ED said in a statement.Another person of interest for the ED is S. Bhattacharya, who had acquired two immovable properties valued at AED 40,07,319 (approximately ₹9.83 crore).“Bhattacharya too purchased properties in Dubai without any corresponding outward remittance from India through authorised banking channels. He further failed to furnish documentary evidence regarding the source of overseas funds used for the acquisition of the immovable properties, as well as any approval from the RBI for acquiring foreign assets abroad,” the ED said.As the foreign immovable properties were located outside India and could not be seized directly, the Competent Authority, exercising powers under Section 37A of the Foreign Exchange Management Act, 1999, ordered the seizure of immovable properties situated in India. These were attached as equivalent-value properties corresponding to the foreign assets acquired and held abroad in violation of FEMA provisions.Accordingly, seizure orders were issued for five properties belonging to Kapil Aggarwal and Sangeeta Aggarwal worth ₹17.83 crore, and for three immovable properties linked to S. Bhattacharya, associated with NEC Energy Pvt. Ltd., valued at approximately ₹10 crore.