A group of over 75 investors in Carlisle's Luxembourg Life Fund, who collectively lost more than $13.5 million, are reportedly preparing to approach the Prime Minister's Office (PMO) in India. The investors claim HDFC Bank's Dubai operations mis-sold them an insurance-linked product, presenting it as a capital-protected investment with high annual returns of 12-19 percent.
These investors contend that the product was not only misrepresented but also came with leverage options that significantly amplified their exposure and subsequent losses, particularly during the 2020 market downturn. They are consolidating their complaints and exploring legal avenues against HDFC Bank.
Investor Actions and Demands
In addition to the PMO, the aggrieved investors intend to lodge complaints with the Reserve Bank of India (RBI) and the Central Bank of Bahrain. Some have already filed independent complaints with the Dubai Financial Services Authority (DFSA).
Hitesh Bhatia, a Dubai-based former banker and investor in the fund, reportedly stated, "We are planning to write to the PMO this week, highlighting the serious client-suitability lapses at HDFC Bank in Dubai, concerns around leverage, disclosures, investor losses, and denial of liquidity. We will request that the matter be referred to the appropriate regulatory and investigative authorities."
Background and Past Issues
This development follows years of unresolved disputes surrounding the Carlisle fund. It also comes after the DFSA took action against HDFC Bank's DIFC branch in 2025, restricting its operations over alleged mis-selling of high-risk Credit Suisse AT1 bonds to retail customers.
It's important to note that the allegations are based on media reports, and independent verification of these claims is ongoing.