ED detects Rs 5,610 cr forex violation by firms in last 5 yrs

The Enforcement Directorate has detected alleged foreign exchange violation to the tune of Rs 5,610.49 crore by industrial houses and multi-national companies since 2010, the government told Lok Sabha today.
"Directorate of Enforcement has issued 31 show cause notices involving alleged contraventions of Rs 5,610.49 crore from 2010 onwards for violation of various provisions of Foreign Exchange Management Act (FEMA), 1999 in cases of industrial houses and multi-national companies," Finance Minister Arun Jaitley said in a written reply.
He said, "Whenever, contraventions of the FEMA are observed, RBI advises the companies concerned to get the contravention compounded under FEMA and also if required, the cases are referred to the Directorate of Enforcement for further investigation."

During the last three years, RBI's cell for Effective Implementation of FEMA (CEFA), which has its central office in Mumbai, has compounded 844 cases of industrial houses and MNCs, he added.