RBI closes FEMA case against Kakinada seaports after the company pays Rs 21.68 lakh penalty

Key Highlights

• The ED had initiated the investigation based on credible information.
• Upon completing its probe, the ED filed a formal complaint with the Adjudicating Authority in 2024, citing three primary contraventions: — Delay in reporting foreign inward remittances totalling over Rs 22.87 crore; delay in filing the required FC-GPR form with the RBI after issuing shares, involving over Rs 23.31 crore; and, delay in the issuance and allotment of shares amounting to over Rs 7.20 crore.
• The Adjudicating Authority subsequently issued a show cause notice to the company and its responsible directors in September 2024.
• Kakinada Seaports later applied to the RBI for compounding the contraventions.
• The RBI acted on the application after the ED, on reference, issued a “No Objection” for the settlement.