https://www.taxtmi.com/caselaws?id=787449 Whether funds raised abroad through wholly owned overseas subsidiaries and returned as investment into Indian group companies amounted to impermissible round-tripping under FEMA and related transfer/issue regulations. The article explains that where overseas JV/WOS have nominal capital, lack bona fide business operations and primarily raise overseas borrowings to reinvest into India, such arrangements fall within the regulatory concept of round-tripping; Regulation 6(2)(ii) requires bona fide overseas activity and Regulation 7 imposes additional conditions for financial-sector parties. The practical effect described is that such transactions circumvent FEMA governance and can be treated as contraventions leading to enforcement consequences. en-us Wed, 24 Sep 2025 00:00:00 +0530 Fri, 06 Mar 2026 08:30:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787449 Whether funds raised abroad through wholly owned overseas subsidiaries and returned as investment into Indian group companies amounted to impermissible round-tripping under FEMA and related transfer/issue regulations. The article explains that where overseas JV/WOS have nominal capital, lack bona fide business operations and primarily raise overseas borrowings to reinvest into India, such arrangements fall within the regulatory concept of round-tripping; Regulation 6(2)(ii) requires bona fide overseas activity and Regulation 7 imposes additional conditions for financial-sector parties. The practical effect described is that such transactions circumvent FEMA governance and can be treated as contraventions leading to enforcement consequences. Case-Laws FEMA Wed, 24 Sep 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787449