Money laundering probe: ED to shoot off notices to uncover realty of Dubai
Enforcement Directorate will issue notices to buyers of Dubai properties to scan if they have violated foreign exchange laws and indulged in money laundering to acquire these offshore assets.
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The central agency has collated information gathered from its sources with the data received from the Income Tax (I-T) department and the Reserve Bank of India. A probe has begun, official sources told ET.
Many Indian high net worth families have been swept up in the frenzy of the Dubai realty market where developers threw in lucrative offers like insignificant down payments with the balance to be paid out over a period of time. In the process many, and some unwittingly, have breached the foreign exchange currency regulations.
The ED would invoke the Prevention of Money Laundering Act (PMLA) in cases where the I-T department believes that there has been a violation of the black money law. In such instances, the latter would serve as the predicate offence for the ED to pursue a matter under PMLA.
There could be various transactions that could amount to flouting the Foreign Exchange Management Act: using export proceeds to buy properties instead of bringing the money back to India; investing funds received as gift from a non-resident relative to buy properties abroad; tapping
