Overview

• The Enforcement Directorate has issued summons to Indian residents, predominantly in northern states, who acquired properties in Dubai without documented bank transfers.
• Investigators are scrutinizing transactions conducted through direct cryptocurrency payments and high-limit credit cards that sidestep the RBI’s Liberalised Remittance Scheme.
• Officials are examining potential violations of the Foreign Exchange Management Act and the Prevention of Money Laundering Act, with no scope for compounding under PMLA.
• Undisclosed foreign assets may trigger penalties under the Black Money Act, including taxes and fines of up to 120% of a property’s value and possible attachment.
• The crackdown was launched after the Income Tax Department obtained data on undisclosed UAE property holdings gathered independently outside formal information-sharing pacts.