New Delhi, April 2 The Reserve Bank of India (RBI) issued an order on February 20 this year under Section 15 of the Foreign Exchange Management Act (FEMA), 1999, in the case involving Rs 4.1 crore against Vikram Mundlur, which has resulted in the termination of adjudication proceedings against him for violations of the provisions of FEMA, 1999.
The order was passed by the RBI after the Enforcement Directorate (ED) issued a "no objection" statement, as stated in an official statement released on Thursday.
Accordingly, based on the "no objection" issued by the ED, the RBI has issued a compounding order dated February 20, 2026, for a one-time payment of Rs 3,60,495.
"This has resulted in the termination of adjudication proceedings concerning the aforementioned violation under the provisions of FEMA against the individual. No further legal proceedings will be carried out in this 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 regularize the violation without undergoing lengthy litigation or legal proceedings.
In this case, based on the credible information received, the ED initiated an investigation under the provisions of FEMA.
"After the completion of the investigation, the ED filed a complaint under Section 16 of FEMA before the adjudicating authority, highlighting the violation of FEMA norms involving an amount of Rs 4,13,99,368, for which the RBI has issued a compounding order," the ED statement said.
As per the provisions of FEMA, the adjudicating authority initiated adjudication proceedings by issuing a 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 violations under FEMA as per the provisions of Section 15 of the Act.
"At the request of the Reserve Bank of India, the ED issued a "no objection" statement in line with the true spirit of the Act," the statement added.
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