New Delhi, June 4: The Reserve Bank of India (RBI) has issued a compounding order concerning Jusda India Supply Chain Management Private Limited under Section 15 of the Foreign Exchange Management Act, 1999 (FEMA) on April 8.
This order concludes ongoing actions against the company for violations of FEMA provisions. The RBI passed this order after receiving a ‘no objection’ from the Enforcement Directorate (ED).
The ED initiated an investigation based on credible information regarding violations of FEMA. Upon completing the investigation, the ED filed a complaint before the adjudicating authority under Section 16 of FEMA. The complaint stated that Jusda India Supply Chain Management Private Limited issued shares to entities in countries sharing land borders with India without obtaining prior government approval, in violation of Rule 4 of the FEMA (NDI) 2019 regulations. The matter involves an amount of ₹18.5 crore.
Subsequently, the company applied to the RBI for compounding the violations under Section 15 of the Act. The ED issued a ‘no objection’ for such compounding, aligning with the spirit of the Act.
Based on the ED’s ‘no objection’, the RBI has compounded the violations through the order issued on April 8, which includes a one-time payment of ₹12,52,984. As a result, the ongoing adjudicatory actions against the company concerning these violations, as well as any further legal proceedings, have been concluded.
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