The Directorate of Enforcement (ED) has provisionally seized immovable properties in Dubai worth approximately Rs. 27.83 crore in India in connection with an alleged violation of the Foreign Exchange Management Act (FEMA), 1999, involving undisclosed overseas investments routed through hawala channels.
According to an official press release issued on February 4, 2026, the ED conducted searches at multiple premises in Delhi based on intelligence inputs indicating that certain high-net-worth individuals, while being persons resident in India, had made substantial overseas investments, primarily in Dubai, without routing funds through authorised banking channels.
Undisclosed Overseas Assets Detected
The searches led to the recovery of incriminating documents and information relating to undisclosed foreign assets acquired in contravention of FEMA provisions.
During the investigation, the ED found that Kapil Aggarwal and Smt. Sangeeta Aggarwal, both residents of India, had jointly acquired ten immovable properties in Dubai for a total consideration of AED 1,94,03,975, equivalent to approximately ₹34.14 crore. The agency noted that no corresponding outward remittance from India through authorised banking channels could be established.
The individuals also failed to furnish documentary evidence regarding the source of funds used for acquiring the overseas properties and could not produce any approval from the Reserve Bank of India (RBI) for acquisition of foreign assets abroad, as required under FEMA regulations.
Separate Case Involving Additional Overseas Properties
In a separate but similar instance, the investigation revealed that S. Bhattacharya, also a person resident in India, had acquired two immovable properties overseas valued at AED 40,07,319, approximately ₹9.83 crore. The ED stated that no authorised outward remittance was traceable in this case either.
The individual allegedly failed to provide documentary proof of the source of overseas funds or RBI approval for acquisition of foreign immovable properties.
Seizure Ordered Under Section 37A of FEMA
Since the foreign 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 as equivalent-value assets.
Accordingly, seizure orders were issued for:
- Five immovable properties linked to Kapil Aggarwal and Smt. Sangeeta Aggarwal, valued at approximately ₹17.83 crore, and
- Three immovable properties linked to S. Bhattacharya, held through NEC Energy Pvt. Ltd., valued at approximately ₹10 crore.
Investigation Ongoing
The Enforcement Directorate has stated that further investigation is under progress to identify additional assets, fund trails, and possible contraventions under FEMA.
