The Reserve Bank of India (RBI) has taken action against Touras India Private Limited under the Foreign Exchange Management Act (FEMA). The company faced contraventions of FEMA provisions, leading to the termination of proceedings upon payment of Rs 26,950. This move followed an “no objection” from the Directorate of Enforcement (ED).
Section 15 of FEMA allows entities to admit violations, pay penalties, and rectify contraventions without prolonged legal battles. The ED initiated an investigation against Touras India Private Limited based on credible information. The company was found to have delayed reporting foreign inward remittances and Foreign Currency-Gross Provisional Returns (FCGPR).
Touras India Private Limited also faced issues related to delays in issuing shares post remittance receipts. To address these violations, the company applied for compounding under FEMA Section 15. With the ED’s no objection, the RBI has now compounded these contraventions, as per the statement released on June 18.
