RBI issues compounding order for FEMA violations by Genpact India: ED

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.