New Delhi, April 2 (IANS) The Reserve Bank of India (RBI) has issued a compounding order on February 20 this year under Section 15 of the Foreign Exchange Management Act (FEMA), 1999, in the Rs 4.1 crore case filed against Vikram Mundlur, which has resulted in the termination of adjudication proceedings against him for contraventions of provisions of FEMA, 1999.

The order has been passed by the RBI after issuance of a "no objection" statement by the Enforcement Directorate (ED) which was investigating the case, according to an official statement issued on Thursday.

Accordingly, the RBI, on the basis of no objection issued by the ED, has compounded the contraventions vide compounding order dated February 20, 2026, with a one-time payment of Rs 3, 60,495.

"This has resulted in termination of adjudication proceedings with respect to aforementioned contravention under the provisions of FEMA against the person. No further litigation will be carried out in the case," the statement said.

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.

In this case, based on the credible information received, investigation was taken up by ED under the provisions of FEMA.

"After completion of investigation, the ED filed a complaint under Section 16 of FEMA before the adjudicating authority pointing out the contravention of FEMA norms involving an amount of covering Rs 4,13,99,368, for which compounding has been done by RBI," the ED statement said.

As per the provisions of FEMA, the adjudication proceedings were initiated by the adjudicating authority by issuance of show cause notice dated January 30, 2023, under Section 16 of FEMA against Vikram Mundlur.

Mundlur then filed an application before the RBI for compounding of the contraventions under FEMA as per the provisions of Section 15 of the Act.

"On reference from the Reserve Bank of India, the ED issued a no objection for the compounding in line with the true spirit of the Act," the statement added.

--IANS

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