ED Seizes Indian Properties Linked to Illegal Dubai Investments Under FEMA

Hawala-Routed Overseas Assets Worth Over ₹44 Crore Detected in Searches

The Directorate of Enforcement carried out search operations in Delhi under the Foreign Exchange Management Act after intelligence inputs revealed that certain high net worth individuals had made undisclosed overseas investments, primarily in Dubai, through hawala channels. The searches led to the recovery of incriminating documents pointing to acquisition of foreign immovable properties in violation of FEMA provisions. The investigation found that Kapil Aggarwal and Sangeeta Aggarwal jointly acquired ten properties in Dubai worth approximately AED 1.94 crore (around ₹34.14 crore) without any authorised outward remittance or approval from the Reserve Bank of India. Similarly, S. Bhattacharya was found to have purchased two overseas properties valued at nearly ₹9.83 crore through unexplained funds.

Equivalent Assets in India Seized Under Section 37A of FEMA

Since the foreign properties were located outside India and could not be directly seized, the ED invoked powers under Section 37A of FEMA to attach equivalent assets within India. Accordingly, five immovable properties worth about ₹17.83 crore belonging to Kapil and Sangeeta Aggarwal were seized, along with three properties valued around ₹10 crore linked to S. Bhattacharya and NEC Energy Pvt. Ltd. The Enforcement Directorate stated that further investigation into the flow of illicit funds and associated violations is ongoing.