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RBI's Compounding Order: How Janapriya Townships Settled a Rs. 78 Crore FEMA Case

The Reserve Bank of India has closed a FEMA investigation against Janapriya Townships Private Limited. This action came after the company applied to compound its violations, which involved significant delays in financial reporting. The Enforcement Directorate, after reviewing the case, issued a no-objection to the settlement. Ultimately, the RBI compounded the contraventions with a final payment of over 1.68 lakh rupees.

Key Points: RBI Issues FEMA Compounding Order for Janapriya Townships Violations

  • RBI issued the compounding order after Enforcement Directorate provided a crucial no-objection
  • Violations included a 64.66 crore rupee delay in reporting foreign share remittances
  • Company also delayed filing annual foreign asset returns for seven financial years
  • The one-time settlement payment for the compounded contraventions was Rs. 1,68,160
2 min read

RBI issues a compounding order for FEMA violations in the case of Janapriya Townships Private Limited.

RBI settles FEMA case against Janapriya Townships after ED's no-objection, compounding violations involving Rs. 78 crore with a Rs. 1.68 lakh payment.

"The RBI, based on the ED's no-objection, has compounded the said contraventions - Official Statement"

New Delhi, December 20

The Reserve Bank of India (RBI) has issued a compounding order dated on 06.11.2025 u/s 15 of Foreign Exchange Management Act, 1999 (FEMA), in the case of Janapriya Townships Private Limited, which has resulted into termination of investigation against the company for these contraventions of provisions of FEMA, 1999, read the official statement.

The said order has been passed by the RBI after issuance of "No Objection" by the Directorate of Enforcement (ED).

In this case, based on the credible information received, an investigation was taken up by ED for the following contraventions of FEMA, 1999, for which RBI has done compounding: -

Delay in reporting receipt of foreign inward remittances towards issuance of shares to a person resident outside India under Para 9(1)(A) of Schedule 1 to FEMA 20, amounting to Rs. 64.66 Crore.

Delay in submission of Form FC-GPR after issue of shares to a person resident outside India under Para 9(1)(B) of Schedule 1 to FEMA 20, amounting to Rs. 13.20 Crore.

Delay in filing of 'Annual Return on Foreign Liabilities and Assets' for seven financial years under Paragraph 9(2) of Schedule 1 to FEMA 20, read with A.P. (DIR Series) Circular No. 45 dated March 15, 2011.

The case was under investigation, and the company applied to the RBI to compound the said contraventions under FEMA, in accordance with Section 15 of the Act. On the RBI's reference, the ED issued no objection to such compounding, in line with the true spirit of the Act.

Accordingly, the RBI, based on the ED's no-objection, has compounded the said contraventions vide a compounding order dated 06.11.2025, with a one-time payment of Rs 1,68,160.

- ANI

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Reader Comments

P
Priya S
Good to see the RBI and ED working in coordination. The "true spirit of the Act" mentioned here is important - it's about compliance and correction, not just punishment. This closure allows the company to move forward while adhering to rules. 👍
R
Rahul R
₹64 crore delay in reporting and the fine is less than 0.03% of the amount? The math doesn't add up for a strong deterrent. While I understand compounding is a resolution mechanism, the penalty should have some correlation to the scale of the lapse.
S
Sarah B
As someone working in finance, these FEMA reporting delays are more common than people think. The procedures are complex. The key takeaway is that the company proactively applied for compounding. It shows the system works when entities engage with regulators transparently.
K
Karthik V
Janapriya is a real estate company, right? This kind of news about compliance issues, even if resolved, can shake buyer confidence. Hope they have tightened their internal processes now. Homebuyers need to trust that the company's finances are in order.
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Nisha Z
The article says the investigation is terminated. That's a relief for the company, but it also means we won't know if there was any wilful intent or just procedural delays. More transparency on the nature of the "credible information" would be helpful for public understanding.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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