New Delhi: The Reserve Bank of India (RBI) has issued a compounding order under Section 15 of Foreign Exchange Management Act (FEMA), in the case of Ripe Accountancy Services Private Limited, which has resulted in the termination of proceedings against the company for contravention of provisions under FEMA, according to a statement issued by the Enforcememt Directorate (ED) on Friday.
The order has been passed by the RBI with a one-time payment of Rs 1.77 lakh to be paid by the company, after the ED issued the required “no objection” in the case.
Section 15 provides a mechanism for individuals or companies to voluntarily admit to a violation of FEMA regulations, pay a penalty, and regularise the contravention without undergoing lengthy litigation or legal proceedings.
Investigation was earlier taken up by ED in this case, based on credible information received, under the provisions of FEMA.
After completion of investigation, the ED filed a complaint before the Adjudicating Authority pointing out the failure of the company to report the receipt of foreign inward remittance to the tune of Rs 10.39 lakh within the prescribed time period.
There was also a delay in filing form Foreign Currency-Gross Provisional Return (FC-GPR) by the firm pertaining to an amount of Rs 99,000.
Besides, the company failed to refund excess share application within the stipulated period which involved a sum of Rs 9,40,451.
The company also failed to Foreign Liabilities and Assets (FLA) returns in the mandatory annual reporting form required by the RBI under the Foreign Exchange Management Act.
The company, later on, filed an application before the RBI for compounding of these contraventions under FEMA as per the provisions of Section 15 of the Act.
On reference from RBI, the ED issued no objection for such compounding in line with the true spirit of the Act.
Accordingly, the RBI, on the basis of no objection issued by ED, has compounded these contraventions vide compounding order dated January 30, 2026.
(IANS)
