Investors in HDFC Bank Carlisle-linked Dubai fund plan to write to the PMO this week, alleging mis-selling and years of denial of redemption.

The complaint centres on how the product was sold. Investors say it was pitched to them as a capital-protection, insurance-linked investment offering annual returns of 12-19%.

They allege that the leverage bundled with the investment sharply increased their exposure, and losses mounted during the market crash triggered by Covid-19.

Beyond the PMO, the group is also looking to approach the Reserve Bank of India and the Central Bank of Bahrain.

Some investors have already filed independent complaints with the Dubai Financial Services Authority, the report noted.

Hitesh Bhatia, a Dubai-based former banker who put money into the fund back in 2019, explained the group’s plan.

He said they intend to flag ‘serious client-suitability lapses’ at the bank’s Dubai unit, along with concerns around leverage, disclosures, investor losses and denial of liquidity, and push for the matter to reach the appropriate regulatory and investigative authorities.

This isn’t the first time HDFC Bank’s Dubai operations have drawn regulatory scrutiny.

In 2025, the Dubai Financial Services Authority acted against the bank’s DIFC branch over allegations that it mis-sold high-risk Credit Suisse AT1 bonds to retail clients, a move that came with restrictions on the branch at the time.

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