NEW DELHI, India — The Reserve Bank of India has issued a compounding order in the case of Kakinada Seaports Limited for violations under the Foreign Exchange Management Act, bringing an end to adjudication proceedings and further litigation against the company, according to a statement issued by the Enforcement Directorate on Friday.
The compounding order was issued on December 12, 2025, under Section 15 of the Foreign Exchange Management Act, 1999, after the Enforcement Directorate provided a “no objection” certificate to the central bank.
The Enforcement Directorate said it had launched an investigation under FEMA based on credible information related to the company. Following the completion of the probe, the agency filed a complaint on September 5, 2024, before the adjudicating authority under Section 16 of FEMA, outlining multiple alleged contraventions of the law.
According to the statement, the violations included delayed reporting of foreign inward remittances amounting to Rs 22.88 crore, a delay in filing Form FCGPR after the issuance of shares involving Rs 23.31 crore, and delays in the allotment of shares under Paragraph 8 of Schedule 1 to 20 of FEMA, covering Rs 7.21 crore.
The adjudicating authority subsequently issued a show-cause notice dated September 30, 2024, to Kakinada Seaports Limited, along with its directors and officers who were responsible for the conduct of the company’s business during the period in which the alleged contraventions occurred.
The company later approached the Reserve Bank of India seeking compounding of the violations under Section 15 of FEMA. On reference from the RBI, the Enforcement Directorate granted its “no objection” for compounding, stating that the decision was in line with the spirit of the Act.
Based on the Enforcement Directorate’s clearance, the RBI compounded the violations through its December 12, 2025, order, subject to a one-time payment of Rs 21.68 lakh. The move formally terminated the adjudication process under FEMA and brought the matter to a close, the statement said. (Source: IANS)
