The Enforcement Directorate’s Delhi office conducted searches in the national capital under FEMA provisions due to intelligence inputs about high net worth individuals making overseas investments through hawala channels. Incriminating documents were found, indicating undisclosed foreign assets acquired in violation of FEMA rules. Kapil Aggarwal and Sangeeta Aggarwal were discovered to have jointly acquired 10 properties in Dubai without proper remittance or RBI approval.
The ED alleged that these investments were made without legal outward remittance from India and lacked documentation on the funding source or RBI approval for holding foreign assets. Similarly, S. Bhattacharya, a resident in India, acquired two properties in Dubai without authorized remittance channels or proof of funding source. The competent authority invoked FEMA’s Section 37A to seize equivalent-value assets in India linked to the foreign properties acquired unlawfully.
Seizure orders were issued for five properties connected to the Aggarwals valued at around Rs 17.83 crore and three properties linked to Bhattacharya valued at approximately Rs 10 crore. The properties in India were seized as they could not directly seize foreign properties. Further investigations into the matter are ongoing.
