https://www.taxtmi.com/caselaws?id=770870 The Appellate Tribunal under SAFEMA upheld contravention of Section 10(5) of FEMA against the appellant bank for remitting Rs. 47.3 crores as interest at 17% despite fund diversion by the borrower entity. The bank failed to ensure proper utilization of FDI funds and ignored its obligation to obtain declarations preventing contraventions. However, the Tribunal found the original penalty of Rs. 5 crores disproportionate and reduced it to Rs. 50 lakhs, ordering refund of the excess Rs. 4.50 crores already deposited by the bank. en-us Wed, 30 Apr 2025 00:00:00 +0530 Sat, 17 May 2025 08:39:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770870 The Appellate Tribunal under SAFEMA upheld contravention of Section 10(5) of FEMA against the appellant bank for remitting Rs. 47.3 crores as interest at 17% despite fund diversion by the borrower entity. The bank failed to ensure proper utilization of FDI funds and ignored its obligation to obtain declarations preventing contraventions. However, the Tribunal found the original penalty of Rs. 5 crores disproportionate and reduced it to Rs. 50 lakhs, ordering refund of the excess Rs. 4.50 crores already deposited by the bank. Case-Laws FEMA Wed, 30 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770870