RBI's FEMA Order: How Nearbuy India Settled a ₹108 Crore Violation Case

The order was passed by the RBI on October 17 after the issuance of "No Objection" by the ED, an agency statement said.

In this case, based on credible information received, an investigation was taken up by the ED under the provisions of the act. After completion of investigation, the agency filed a complaint under FEMA before the Adjudicating Authority on Decemb er 3, 2024 pointing out the contraventions under the FEMA which include late reporting of foreign inward payments under Para 9(1)(A) of Schedule 1 to FEMA 20/2000-RB, covering Rs. 35.82 crore, late filing of Form FCGPR after issuing shares under Para 9(1)(B) of the same schedule, covering Rs 73.01 crore.

The RBI has now done the compounding for these contraventions, the statement said.

As per the provisions of FEMA, the adjudication proceedings were initiated by the Adjudicating Authority by issuance of a show cause notice dated February 27, under Section 16 of FEMA, to the company and its directors and officers who were in charge and responsible for the conduct of the business of the company during the relevant period during which the contravention of norms took place.

The company, later on, filed an application before the RBI for compounding of these contraventions under FEMA as per the provisions of Section 15.

On reference from the RBI, the ED issued a “no objection” for such compounding in line with the spirit of the Act. Accordingly, the RBI, on the basis of no objection issued by the ED, has compounded the said contraventions vide compounding order with a one-time payment of Rs 4,28,297.

This has resulted in the termination of adjudication proceedings under the provisions of FEMA, as well as further litigation against the company and its office bearers, the statement added.

- IANS