ED Cracking Down on Indians Buying Dubai Property via Credit Cards


India's Enforcement Directorate is investigating Indians who used credit cards to buy Dubai real estate.
Under FEMA, property purchases abroad are capital account transactions. Credit cards are only permitted for current spending like travel and shopping, not real estate.
The only legal route is RBI's Liberalised Remittance Scheme (LRS), up to $250,000/year through authorized banks.
Penalties:
→ FEMA violation: Up to 3x transaction value
→ Black Money Act: Up to 120% penalty on undisclosed assets
→ PMLA: Asset confiscation + jail time
In Feb 2026, ED seized 8 Dubai properties worth Rs 27.83 Cr in a hawala-funded case. Many buyers are now reversing card payments and re-routing through LRS.
If you're investing overseas, always use the LRS route. A credit card swipe can trigger serious legal action.
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