New Delhi, Dec 20 (IANS) The Enforcement Directorate (ED) on Saturday said that the Reserve Bank of India (RBI) has issued a compounding order under Section 15 of Foreign Exchange Management Act, 1999 (FEMA), in the case of Genpact India Private Limited, which has resulted in termination of proceedings against the company for alleged contraventions of provisions of the law.
The order was passed by the central bank after issuance of ‘No Objection’ by the ED.
According to the ED statement, based on the credible information received, an investigation was taken up by the ED under the provisions of FEMA.
After completion of the investigation, ED filed a complaint before the Adjudicating Authority on October 16, 2018, pointing out contraventions under FEMA for which compounding has been done.
There were “late reporting of foreign inward payments under Para 9(1) (A) of Schedule 1 to FEMA 20/2000-RB, amounting to Rs. 13.49 crore; delay in filing of Form FCGPR after issuing shares under Para 9(1) (B) of schedule 1 to FEMA 20/2000-RB, amounting to Rs. 13.01 crore”, the statement read.
As per the provisions of FEMA, the adjudication proceedings were initiated by the Adjudicating Authority by issuance of a show-cause notice under FEMA to the company and its directors/officers who were in charge and responsible for the conduct of the business of the company during the relevant period of contravention.
Subsequently, the company filed an application before the RBI for compounding of the said contraventions under FEMA as per the provisions of Section 15 of the Act.
On reference from the RBI, the ED issued no objection for such compounding in line with the true spirit of the Act.
“Accordingly, the RBI, on the basis of no objection issued by ED, has compounded the said contraventions vide compounding order dated 17.10.2025 with a one-time payment of Rs. 4,72,490. This has resulted in termination of adjudication proceedings under the provisions of FEMA against the company and its office bearers, as well as further litigation,” the ED statement said.
On Friday, the RBI issued a compounding order under Section 15 of the FEMA in the case of Nearbuy India Private Limited, which has resulted in the termination of proceedings against the company for alleged contraventions of the act, the ED said.
–IANS
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