REHAB fears siphoning off money

The Real Estate and Housing Association of Bangladesh (REHAB) fears that huge money might be siphoned off abroad following a foreign company’s call through recent newspaper advertisements to buy apartments in Dubai, reports UNB.

Such an illegal campaign will only encourage siphoning off money abroad at a time when the country’s housing sector is in bad shape it’ s an ominous sign for the country’s real estate sector, the apex body of the real estate sector said in a statement.

Mentioning the Foreign Exchange Regulation Act 1947, the REHAB said there is no scope to buy apartments abroad. EHAB expects proper steps from the ministry concerned in this regard.

rehabCiting statistics from an international study, it said some Tk 1,120 billion has been siphoned off abroad from Bangladesh over the last decade.

It also said Tk 35 billion has been siphoned off abroad in the name of buying ‘second home’ in Malaysia.

Meanwhile, the Bangladesh Bank has warned against property purchases abroad by violating restriction on foreign currency transfer.

The central bank issued a cautionary notice after advertisements were published in local newspapers offering apartments abroad.

Recently, Dubai-based DAMAC Properties offered luxury apartments, villa, condominiums and town houses in the UAE city for sales.

The central bank, citing Foreign Exchange Regulation Act 1947, said there is a bar on sending money abroad to buy properties. And the role of the collaborators in sending money illegally will be a punishable offence,” the BB said.

DAMAC Properties was established in 2002, as a private residential, leisure and commercial developer in Dubai and the Middle East. In the past decade, DAMAC Properties has expanded rapidly into North Africa, Jordan, Lebanon, Qatar and Saudi Arabia.