ED attaches ₹3.67 crore Jabalpur property over FEMA violations
Synopsis
The ED has attached a ₹3.67 crore property in Jabalpur after finding that Priyank Mehta remitted USD 548,000 under the LRS for a US visa investment programme but diverted USD 502,954 to Portugal to buy property — never repatriating the funds to India. The case highlights the ED's sharpening focus on LRS misuse as a route for undisclosed overseas asset creation.
Key Takeaways
The ED Bhopal Zonal Office attached a ₹3.67 crore property in Jabalpur on 23 July under FEMA, 1999 .
Property owner Priyank Mehta had remitted USD 548,000 under the Liberalised Remittance Scheme (LRS) for the EB-5 Visa Programme in the United States .
USD 502,954 of the refunded amount was not repatriated to India; instead it was transferred to Portugal and used to acquire immovable property there.
The action violates Section 4 read with Section 10(6) of FEMA, 1999 , according to the ED.
Investigation is ongoing, with the ED tracing additional transactions and assets linked to the alleged violations.
The Directorate of Enforcement (ED), Bhopal Zonal Office, has attached an immovable property worth ₹3.67 crore in Jabalpur, Madhya Pradesh, under the provisions of the Foreign Exchange Management Act (FEMA), 1999. The property belongs to Priyank Mehta, and the action follows a probe that uncovered alleged misuse of foreign exchange remitted under a government-approved scheme, according to an official statement issued on Thursday, 23 July.
How the Violation Came to Light
The case originated from specific inputs shared by the Income Tax Department, which prompted the ED to launch its own investigation. Investigators found that Mehta had remitted USD 548,000 to the United States under the Liberalised Remittance Scheme (LRS), ostensibly for investment in the EB-5 Visa Programme. However, according to the ED, a substantial portion of those funds — USD 502,954 — was not deployed for the declared purpose.
The Money Trail: US to Portugal
Rather than repatriating the refunded amount to India as required under FEMA, Mehta allegedly transferred the funds directly from the United States to Portugal. Further investigation revealed that this sum was pooled with additional remittances from India and used to acquire immovable property in Portugal. A remaining balance was reportedly retained in a foreign bank account in Portugal.
The ED stated that the acquisition, holding, and utilisation of these foreign assets violated Section 4 read with Section 10(6) of FEMA, 1999.
The Attachment and Its Legal Basis
Exercising its powers under FEMA, the ED attached Mehta's Jabalpur property, valued at approximately ₹3.67 crore — equivalent to the foreign exchange amount allegedly held outside India in contravention of the law. Officials stated that the attachment is part of broader efforts to curb misuse of foreign exchange remittances and enforce regulatory compliance.
The ED confirmed that investigation into the case is ongoing, with a focus on tracing additional transactions and assets linked to the alleged violations.
Broader Enforcement Context
This action is part of the ED's intensifying scrutiny of overseas investments made through the LRS, a Reserve Bank of India facility that allows resident individuals to remit up to USD 250,000 per financial year for permissible current and capital account transactions. Authorities have flagged a pattern of remittances being diverted from their stated purpose — a trend the agency says it is actively monitoring.
The attachment marks another significant enforcement action by the ED in Madhya Pradesh, reinforcing the agency's mandate to uphold the integrity of India's cross-border financial framework. Further developments are expected as the investigation progresses.
Point of View
Making it harder for authorities to flag early. The Income Tax Department tip-off suggests inter-agency coordination is improving, but the fact that funds reached Portugal and were converted into property before detection points to gaps in real-time monitoring of LRS outflows. As the ED widens its LRS scrutiny, expect more such attachments — the scheme's USD 250,000 annual limit, multiplied across multiple family members, can move significant capital offshore.
NationPress
23 Jul 2026
Frequently Asked Questions
What FEMA violation did Priyank Mehta allegedly commit?
According to the ED, Priyank Mehta remitted USD 548,000 under the Liberalised Remittance Scheme for investment in the EB-5 Visa Programme in the US, but diverted USD 502,954 of the refunded amount to Portugal to acquire property instead of repatriating it to India. This allegedly violated Section 4 read with Section 10(6) of FEMA, 1999.
What is the Liberalised Remittance Scheme (LRS) and why does it matter here?
The LRS is a Reserve Bank of India facility permitting resident individuals to remit up to USD 250,000 per financial year for approved purposes. In this case, the ED alleges the scheme was misused to move funds abroad under a permitted purpose and then divert them to acquire undisclosed foreign assets.
Why did the ED attach property in Jabalpur when the alleged violation involved funds in Portugal?
Under FEMA, the ED can attach domestic assets equivalent in value to the foreign exchange allegedly held or used abroad in violation of the Act. The Jabalpur property, valued at approximately ₹3.67 crore, corresponds to the foreign exchange amount Mehta allegedly retained outside India unlawfully.
How did the ED find out about the alleged violation?
The investigation was triggered by specific inputs provided by the Income Tax Department, after which the ED's Bhopal Zonal Office conducted its own inquiry and traced the money trail from the US to Portugal.
What happens next in this case?
The ED has confirmed that investigation is continuing, with a focus on identifying additional transactions and assets linked to the alleged FEMA violations. Further enforcement action could follow if more contraventions are established.
