NEW DELHI: The Reserve Bank of India (RBI) has issued a compounding order against Apollo Hospitals Enterprises Limited and five of its directors and officers for multiple violations of the Foreign Exchange Management Act (FEMA), bringing adjudication proceedings against the company to a close.
The five individuals named in the order are Preetha Reddy, Suneetha Reddy, SK Venkatraman, Akhileswaran Krishnan and SM Krishnan.
According to the agency, the violations involved foreign direct investment received in a prohibited retail trading sector, issuance of foreign currency convertible bonds in contravention of FEMA regulations and breaches of sectoral FDI caps. The transactions under scrutiny were collectively valued at more than Rs 2,400 crore.
The Enforcement Directorate (ED) said the company settled the matter through a one-time compounding payment of Rs 17.76 crore, while each of the five directors paid Rs 18 lakh separately.
The ED had originally filed a complaint before the Adjudicating Authority after completing its FEMA investigation. It later issued a no-objection certificate, enabling the RBI to proceed with the compounding process.
The settlement brings an end to further litigation against the company on these counts.
