RBI compounds FEMA violations by Apollo Hospitals; directors pay Rs 17.76 crore settlement
The RBI has issued a compounding order against Apollo Hospitals and five directors for FEMA violations, resolving the matter with a Rs 17.76 crore settlement.Summary
The Reserve Bank of India (RBI) has issued a compounding order against Apollo Hospitals Enterprises Limited and five of its directors and officers for multiple violations of the Foreign Exchange Management Act (FEMA). The individuals named in the order are Preetha Reddy, Suneetha Reddy, SK Venkatraman, Akhileswaran Krishnan, and SM Krishnan. The violations involved foreign direct investment received in a prohibited retail trading sector, the issuance of foreign currency convertible bonds in contravention of FEMA regulations, and breaches of sectoral FDI caps. The transactions under scrutiny were collectively valued at more than Rs 2,400 crore. The Enforcement Directorate (ED) stated that the company settled the matter through a one-time compounding payment of Rs 17.76 crore, while each of the five directors paid Rs 18 lakh separately. The ED had originally filed a complaint before the Adjudicating Authority after completing its FEMA investigation and later issued a no-objection certificate, enabling the RBI to proceed with the compounding process. This settlement brings an end to further litigation against the company on these counts.
(Source：The New Indian Express)