RBI Issued Compounding Order for Genpact India Against One-Time Payment: ED
A compounding order in the regulatory context means a formal decision taken by an authority to settle an offence by allowing the defaulter to pay a monetary penalty instead of facing prosecution
NEW DELHI: The Enforcement Directorate on Saturday said the RBI had issued a compounding order for Genpact India, against a one-time payment, resulting in termination of a FEMA case against the technology major.
A compounding order in the regulatory context means a formal decision taken by an authority to settle an offence by allowing the defaulter to pay a monetary penalty instead of facing prosecution.
The agency had filed a complaint against the company in October 2018 for alleged contravention of the Foreign Exchange Management Act to the tune of about Rs 26 crore.
It issued a show cause notice to the firm and its directors in the same month and initiated adjudication proceedings.
Genpact subsequently filed an application before the Reserve Bank of India for compounding of the FEMA "contraventions".
In reference from the RBI, the ED issued "no objection" for such compounding in line with the true spirit of FEMA, and the banking regulator compounded the offence through an order issued on October 17 with a one-time payment of `4.72 lakh to be made by the company, the ED said in a statement.
The agency said that a similar compounding had been ordered by the RBI in the case of some other companies.
