Overview
- The ED, in notices sent in February, asked at least three Indians to explain card-funded deposits on Dubai homes, according to reports published Monday.
- India’s Liberalised Remittance Scheme requires buyers to send tax‑paid money through an authorised bank for overseas property, not use credit cards that are treated as short‑term loans.
- Advisors urge buyers to ask the RBI to regularise the payment route, a process that can keep a deal intact when the underlying funds are legitimate.
- Individuals can seek compounding with the RBI to settle violations after an ED no‑objection, with recent cases citing penalty caps near Rs 2 lakh.
- Those flagged face real‑world costs that can include fresh dollar remittances, refunds, or even a forced sale in a softer Dubai market, and card interest can make balances snowball.