New Delhi, Feb 4 (IANS) The Directorate of Enforcement’s (ED) Delhi office has conducted searches under the provisions of the Foreign Exchange Management Act (FEMA) at multiple premises in the national capital following intelligence inputs that certain high net worth individuals (HNIs), who are resident in India, had made overseas investments — primarily in Dubai — through funds allegedly routed via hawala channels, an official statement said on Wednesday.
According to the ED, the searches led to the recovery of incriminating documents and information indicating the acquisition of undisclosed foreign assets in violation of FEMA provisions.
During the investigation, the ED found that Kapil Aggarwal and Sangeeta Aggarwal, both residing in India, had jointly acquired and held 10 immovable properties in Dubai for a total consideration of AED 1,94,03,975, equivalent to approximately Rs 34.14 crore.
The ED alleged that these investments were made without any corresponding outward remittance from India through authorised banking channels. The duo also failed to furnish documentary evidence regarding the source of funds used for acquiring the overseas properties or any approval from the Reserve Bank of India (RBI) for holding foreign assets abroad.
In a similar case, the ED found that S. Bhattacharya, a person resident in India, had acquired two immovable properties in Dubai valued at AED 40,07,319 (approximately Rs 9.83 crore) without any corresponding outward remittance through authorised banking channels.
He also failed to provide documentary proof of the source of funds or RBI approval for acquiring foreign immovable assets.
As the foreign properties are located outside India and cannot be directly seized, the competent authority invoked powers under Section 37A of the FEMA and ordered the seizure of immovable properties located in India, attached as equivalent-value assets to the foreign properties acquired in contravention of the law, the statement said.
Accordingly, seizure orders were issued for five immovable properties linked to the Aggarwals, valued at approximately Rs 17.83 crore, and for three immovable properties linked to Bhattacharya, connected with NEC Energy Pvt Ltd, valued at around Rs 10 crore.
Further investigation in the matter is underway.
–IANS
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