The Reserve Bank of India (RBI) has issued a compounding order under the Foreign Exchange Management Act (FEMA) for violations by Deccan Digital Networks Pvt Ltd. This order, passed on January 14, resulted in the termination of proceedings against the company for alleged contraventions of FEMA provisions.
The compounding order was issued by the RBI after receiving a ‘No Objection’ from the Enforcement Directorate (ED). An investigation was initiated by the ED based on credible information, leading to a complaint filed against Deccan Digital Networks for contraventions under FEMA.
The contraventions included late reporting of foreign inward payments and late filing of Form FCGPR, amounting to significant sums. Adjudication proceedings were started against the company and its directors/officers responsible for the contraventions.
The company applied for compounding of the contraventions under FEMA, which was approved by the RBI with a one-time payment of Rs 1,03,333. This action led to the termination of adjudication proceedings and further litigation against the company under FEMA.
