Press Information Bureau
Government of India
Ministry of Finance

08-August-2012 18:19 IST

Directorate of Enforcement issues Show Cause Notices for Alleged Contravention of Foreign Excahnge Management Act (FEMA), 1999

The Directorate of Enforcement has issued Show Cause Notice for alleged contravention of Foreign Exchange Management Act, 1999 (FEMA) and the cases of prima-facie, offence of money laundering registered under Prevention of Money Laundering Act, 2002 (PMLA) against Private Companies/MNCs in the last two years are as under:-

 

         Since the allegation of contraventions of FEMA/PMLA are required to be adjudged by the competent authorities under these enactments, it will not be appropriate to give the details of the companies at this stage.

         In addition to action taken by Directorate of Enforcement for violations of FEMA, 1999, RBI entertains applications from person (resident & non-resident) who seeks compounding of an admitted contravention of FEMA for procedural violation except violations under Section 3(a) of the Act.  Details of companies/MNCs which have applied for compounding of contraventions under FEMA are as under:

 

 

      Penalties prescribed in Law are not indexed to price rise.

             This information was given by the Minister of State for Finance, Shri   S.S. Palanimanickam in written reply to a question in Lok  Sabha today.

 

* * *

DSM/RS/Hb

 

FEMA contravention notices and PMLA referrals prompt enforcement and RBI compounding for procedural breaches excluding core violations. Directorate of Enforcement issued Show Cause Notices for alleged contraventions of the Foreign Exchange Management Act, 1999 with related prima facie money laundering registrations under the Prevention of Money Laundering Act, 2002. RBI entertains compounding applications for admitted procedural FEMA contraventions except those under Section 3(a), and the government reported numbers of such applications for the cited periods. Penalties prescribed by law are not indexed to price rise.