Stepping up action against violations of foreign exchange laws, the Enforcement Directorate (ED) has secured orders to seize eight immovable properties located in Dubai, with a combined estimated value of ₹27.83 crore. The action has been initiated under the Foreign Exchange Management Act (FEMA) following findings that the overseas investments were allegedly funded through hawala channels.
According to the enforcement agency, the properties are linked to Kapil Aggarwal and Sangeeta Aggarwal, who are alleged to have acquired and held a total of 10 immovable properties in Dubai. The cumulative purchase cost of these assets has been pegged at AED 1,94,03,975, which, investigators claim, was invested in violation of India’s foreign exchange regulations.
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Hawala routes under scanner
The ED said the case emerged from specific intelligence inputs followed by detailed search operations. The probe revealed that funds used for purchasing the Dubai properties were transferred abroad through unauthorised hawala networks, bypassing mandatory banking channels, regulatory approvals and disclosure requirements prescribed under FEMA.
During searches conducted in Delhi, investigators recovered key documents and digital evidence that allegedly established a clear trail of undisclosed foreign assets and illegal fund transfers. Officials said the material seized indicates a deliberate attempt to conceal overseas investments and evade regulatory oversight.
Wider probe into high-value overseas investments
Officials familiar with the investigation said the action is not confined to a single family, but forms part of a broader crackdown on high-net-worth individuals who allegedly used informal money transfer mechanisms to build real estate portfolios abroad.
Dubai, they noted, has emerged as a preferred global real estate destination for Indian investors. However, enforcement agencies have found that in several cases, investments were made without mandatory disclosures, permissions or adherence to prescribed limits, leading to violations of foreign exchange laws.
Serious breach of FEMA norms
Under FEMA, Indian residents are required to comply with strict conditions for overseas investments, including adherence to limits under the Liberalised Remittance Scheme (LRS), routing transactions through authorised banking channels and declaring all foreign assets to Indian authorities.
Investigators allege that the Aggarwals failed on multiple counts — neither declaring the Dubai properties nor transferring funds through authorised routes. “This is not a procedural lapse. The investigation points to a conscious effort to circumvent foreign exchange controls,” an official said.
Formal seizure orders for eight properties
The ED has confirmed that formal seizure orders have been obtained for eight properties, while legal proceedings concerning the remaining assets are underway. The seizure aims to ensure that the properties are not sold, transferred or encumbered while adjudication proceedings continue.
The valuation of ₹27.83 crore has been calculated based on prevailing exchange rates. Officials said securing the seizure orders was critical to preserving the assets until the conclusion of the legal process.
Enforcement push intensifies
Over the past few years, enforcement agencies have intensified scrutiny of undisclosed offshore assets, leveraging international cooperation, financial intelligence inputs and digital transaction trails to identify cases involving hawala-funded investments.
While FEMA violations are treated as civil offences, officials indicated that if evidence of money laundering or proceeds of crime surfaces during the investigation, action under other criminal statutes could follow.
What lies ahead
The case will now move into the adjudication stage under FEMA, where authorities will determine whether the seized properties are liable for final confiscation and assess the quantum of monetary penalties to be imposed. Those found guilty could face substantial financial fines.
Officials said multiple cases involving overseas property investments are currently under examination, signalling a sustained enforcement drive against undisclosed foreign assets.
For now, the ED’s move against high-value Dubai properties sends a clear message: hawala-funded and concealed overseas investments are firmly under the regulatory scanner, and violations of foreign exchange laws will invite stringent legal action.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
