{"id":2337,"date":"2026-07-16T20:19:17","date_gmt":"2026-07-16T20:19:17","guid":{"rendered":"https:\/\/koshalsambada.in\/?p=2337"},"modified":"2026-07-16T20:19:17","modified_gmt":"2026-07-16T20:19:17","slug":"fema-a-civil-law-rbi-alone-can-compound-offences-says-ed-india-news","status":"publish","type":"post","link":"https:\/\/koshalsambada.in\/?p=2337","title":{"rendered":"Fema a civil law, RBI alone can compound offences, says ED | India News"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div data-articlebody=\"1\"><video-embed value=\"false\"\/><\/p>\n<div class=\"ihgno clearfix  \">\n<div class=\"e9jwa\">\n<div class=\"vdo_embedd\">\n<div class=\"GfdvZ\">\n<section class=\"_bIDB  clearfix id-r-component leadmedia undefined undefined  E9tg9 \" style=\"top:0px\">\n<div class=\"_bIDB\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">\n<div class=\"ypVvZ\">\n<div class=\"WGttI\"><img src=\"https:\/\/static.toiimg.com\/thumb\/msid-132447884,imgsize-141916,width-400,height-225,resizemode-4\/representative-image.jpg\" alt=\"Fema a civil law, RBI alone can compound offences, says ED\" decoding=\"async\" fetchpriority=\"high\"\/><\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n<p>NEW DELHI: <a href=\"https:\/\/timesofindia.indiatimes.com\/topic\/ed\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\" target=\"_blank\" rel=\"noopener\">ED<\/a> Thursday reiterated that Fema is primarily a civil legislation that through Section 15 provides for compounding of contraventions to facilitate voluntary compliance, reduce litigation and ensure expeditious disposal of cases, except those involving serious crimes like money laundering, terror financing and affecting country\u2019s sovereignty and integrity.<span class=\"id-r-component br\" data-pos=\"4\"\/>\u201cIn all cases, Reserve Bank of India (<a href=\"https:\/\/timesofindia.indiatimes.com\/topic\/rbi\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\" target=\"_blank\" rel=\"noopener\">RBI<\/a>) is the competent authority to compound eligible contraventions,\u201d the agency said.<span class=\"id-r-component br\" data-pos=\"8\"\/>The role of ED, which is the designated agency to investigate all violations of Foreign Exchange Management Act after recommendation from RBI, is to issue a no-objection certificate to the central bank with regards to compounding of offences.<span class=\"id-r-component br\" data-pos=\"10\"\/>The clarification came as RBI ordered closure of another Fema case by allowing compounding of offences against pharmaceutical firm Apothecon Pharmaceutical.<span class=\"id-r-component br\" data-pos=\"14\"\/>\u201cRBI has also issued master directions on compounding of contraventions under Fema, prescribing a compounding matrix for determining the compounding amount based on factors such as the nature, gravity, duration and amount involved in the contravention,\u201d ED said.<span class=\"id-r-component br\" data-pos=\"17\"\/>It said once RBI compounds the contraventions, ED drops proceedings and closes the investigation. \u201cMajor cases where it has closed the probes are brought to the notice of public at large through press releases so that in the case of similar pending investigations, application for compounding may be filed by the offenders before RBI,\u201d it said.<span class=\"id-r-component br\" data-pos=\"20\"\/>In the case against Apothecon Pharmaceuticals, the compounding of offences was allowed after the accused paid a penalty of Rs 40 lakh for offences which included delay in reporting foreign inward remittances and issue of equities without approval of govt.<span class=\"id-r-component br\" data-pos=\"22\"\/><\/div>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/timesofindia.indiatimes.com\/india\/fema-a-civil-law-rbi-alone-can-compound-offences-says-ed\/articleshow\/132447870.cms\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>NEW DELHI: ED Thursday reiterated that Fema is primarily a civil legislation that through Section 15 provides for compounding of contraventions to facilitate voluntary compliance, reduce litigation and ensure expeditious disposal of cases, except those involving serious crimes like money laundering, terror financing and affecting country\u2019s sovereignty and integrity.\u201cIn all cases, Reserve Bank of India [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2338,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-2337","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-31"],"magazineBlocksPostFeaturedMedia":{"thumbnail":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/07\/1784233158_representative-image.jpg","medium":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/07\/1784233158_representative-image.jpg","medium_large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/07\/1784233158_representative-image.jpg","large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/07\/1784233158_representative-image.jpg","1536x1536":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/07\/1784233158_representative-image.jpg","2048x2048":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/07\/1784233158_representative-image.jpg","blogsy-small":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/07\/1784233158_representative-image.jpg","blogsy-small-tall":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/07\/1784233158_representative-image.jpg","blogsy-small-square":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/07\/1784233158_representative-image.jpg","blogsy-small-masonry":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/07\/1784233158_representative-image.jpg","blogsy-medium":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/07\/1784233158_representative-image.jpg","blogsy-medium-masonry":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/07\/1784233158_representative-image.jpg","blogsy-large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/07\/1784233158_representative-image.jpg","blogsy-wide":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/07\/1784233158_representative-image.jpg"},"magazineBlocksPostAuthor":{"name":"admin","avatar":"https:\/\/secure.gravatar.com\/avatar\/8709732a479614e7a8aa24d3eb1b239f30dc6d90c61464ed495001e7a469d856?s=96&d=mm&r=g"},"magazineBlocksPostCommentsNumber":"0","magazineBlocksPostExcerpt":"NEW DELHI: ED Thursday reiterated that Fema is primarily a civil legislation that through Section 15 provides for compounding of contraventions to facilitate voluntary compliance, reduce litigation and ensure expeditious disposal of cases, except those involving serious crimes like money laundering, terror financing and affecting country\u2019s sovereignty and integrity.\u201cIn all cases, Reserve Bank of India [&hellip;]","magazineBlocksPostCategories":["\u0b26\u0b47\u0b36 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