New Delhi: In a significant crackdown on illicit financial flows, the Enforcement Directorate (ED) announced on Wednesday that its headquarters investigation unit has executed extensive search operations across the national capital. These actions were initiated based on specific intelligence inputs that pointed towards certain high networth individuals (HNIs) residing in India who had allegedly invested in acquiring properties in Dubai through unauthorized hawala channels.
Major Asset Seizures Uncovered
The anti-money laundering agency disclosed that in two prominent cases, it has successfully seized equivalent assets within India belonging to the accused, with a total value exceeding Rs 28 crore. This move underscores the ED's rigorous approach to combating financial crimes that circumvent legal frameworks.
Case Details: Kapil and Sangeeta Aggarwal
During the course of the investigation, the ED uncovered that accused individuals Kapil Aggarwal and Sangeeta Aggarwal, both residents of India, jointly held ownership of 10 properties located in Dubai. The cumulative value of these assets was assessed at AED 1,94,03,975, which translates to nearly Rs 34.1 crore. Crucially, the agency noted that there were no corresponding outward remittances from India through authorized banking channels to account for these acquisitions.
Furthermore, the Aggarwals failed to provide any documentary evidence regarding the source of the overseas funds utilized for purchasing these properties. Additionally, they did not obtain any necessary approval from the Reserve Bank of India (RBI) for the acquisition of foreign assets abroad, thereby violating established financial regulations.
Recovery of Incriminating Evidence
The searches conducted by the ED led to the recovery of numerous incriminating documents and critical information related to undisclosed foreign assets. These assets were acquired in clear contravention of the provisions outlined in the Foreign Exchange Management Act (FEMA). The agency emphasized that the foreign immovable properties, being situated outside India, could not be seized directly under existing legal provisions.
In response, the competent authority exercised powers conferred under Section 37A of FEMA to order the seizure of immovable properties within India. These domestic assets were attached as properties equivalent in value to the foreign assets acquired and held abroad illegally, ensuring that the financial implications of the violations are addressed effectively.
Specific Seizure Orders Issued
As part of this enforcement action, seizure orders were formally issued for five properties belonging to Kapil and Sangeeta Aggarwal. These properties are collectively valued at nearly Rs 17.8 crore. In a separate but related development, seizure orders were also issued for three properties associated with S Bhattacharya of NEC Energy Pvt Ltd, with an approximate value of Rs 10 crore.
Investigation into S Bhattacharya's Case
The ED's investigation revealed that S Bhattacharya, identified as a person resident in India, had acquired two immovable properties in Dubai valued at AED 40,07,319, equivalent to approximately Rs 9.8 crore. Similar to the Aggarwal case, there were no corresponding outward remittances from India through authorized banking channels to justify these acquisitions.
Bhattacharya also failed to furnish any evidence regarding the source of the funds used for these property purchases, further compounding the allegations of financial misconduct and regulatory non-compliance.
This comprehensive action by the Enforcement Directorate highlights ongoing efforts to curb money laundering and ensure adherence to foreign exchange laws, particularly in cases involving high-value international transactions and asset holdings.
