NRIs living in the UAE cannot pay property deposits on behalf of friends who are buying property in the UAE, according to legal experts. Doing so violates Indian foreign exchange law known as FEMA and risks serious penalties. Buying property in Dubai and other Emirates is popular among Indians. Some NRIs have tried to help friends in India by paying deposits for their UAE properties. But this act falls into a legal grey zone under Indian law. India's Foreign Exchange Management Act (FEMA) governs cross-border money transfers. The Reserve Bank of India's Liberalised Remittance Scheme (LRS) lets resident Indians send up to $250,000 per year abroad for property purchases. However, the payment must come from the buyer's own Indian bank account. If an NRI or anyone else pays the deposit on behalf of the buyer, it is considered an unauthorized money transfer under Section 3(a) of FEMA. Authorities view this as an illegal capital transaction. The Enforcement Directorate (ED) enforces FEMA rules and has taken action against such cases. People involved could face investigations and hefty compounding fees. Legal ways to buy property abroad include using the LRS by the buyer, jointly owning property with proper documentation, or taking mortgages from UAE banks. These routes comply with Indian and UAE laws. Experts advise NRIs not to pay deposits directly for friends. All funds should come from the buyer's Indian bank account using authorized channels to avoid legal and financial risks. NRIs should also consult legal and financial advisors to ensure all property purchases follow regulations and avoid penalties or complications under Indian money laundering and tax laws. In short, helping friends by paying property deposits abroad may seem kind but can lead to violations of Indian foreign exchange laws, enforcement actions, and costly fines. Proper use of LRS and transparent financing is key for safe cross-border property investment.