The Enforcement Directorate (ED) is seizing Indian property worth about ₹28 crore from high-net-worth individuals (HNIs) accused of having undisclosed real estate in Dubai as a consequence of alleged breach of foreign exchange laws. This action was taken in accordance with the Foreign Exchange Management Act (FEMA) as a result of investigations into overseas property purchases in the absence of mandatory approvals or disclosures.
“Those individuals who are in the District of Delhi, Kapil Aggarwal and Sangeeta Aggarwal, jointly purchased ten immovable properties in Dubai.” The aggregate value of these assets is estimated at AED 1,94,03,975 (about ₹34.14 crore). The investments were reportedly conducted without mandated outward remittances, and were against FEMA regulations, which govern how Indian residents can remit money and acquire assets abroad.
Concerning another closely related subject, S. Bhattacharya whose company NEC Energy Pvt. Ltd., acquired, in Dubai, two immovable properties at a total value of AED 40,07,319 (about ₹9.83 crore). The acquisitions had no corresponding evidence of their acquisition as per the investigators and they have had no authorization for the clearance of acquisitions from the Reserve Bank of India (RBI).
Under Section 37A of FEMA, the ED applied to associate the asset with a comparable value within the boundaries of India. Under the action directed, some seizure orders were also given for five immovable properties that were valued about ₹17.83 crore, belonging to Kapil and Sangeeta Aggarwal. And three homes worth almost ₹10 crore belonging to Bhattacharya were even seized as well.
Section 37A gives powers to authorities to seize domestic assets equivalent to the value of foreign exchange, foreign security, or immovable property held abroad in violation of the law. The provision is primarily employed from time to time when the assets belonging to the foreign are itself outside the scope of our Indian enforcement agencies at all.
The decision underlines the government’s ongoing focus on tracking overseas undisclosed foreign assets and compliance with foreign exchange regulations. It also sends a strong signal that violations involving offshore investments could lead to dire domestic consequences.
