ED Confirms RBI's Compounding Order for Genpact India Under FEMA

Overview of the Compounding Order

New Delhi, Dec 20: The Enforcement Directorate (ED) announced on Saturday that the Reserve Bank of India (RBI) has issued a compounding order concerning Genpact India Private Limited under Section 15 of the Foreign Exchange Management Act, 1999 (FEMA). This order effectively concludes the proceedings against the company regarding alleged violations of the law.

The central bank's order followed a 'No Objection' issued by the ED.

According to the ED's statement, the investigation was initiated based on credible information received, leading to inquiries under FEMA.

After the investigation concluded, the ED submitted a complaint to the Adjudicating Authority on October 16, 2018, highlighting the violations under FEMA that warranted compounding.

The violations included "delayed reporting of foreign inward payments under Para 9(1)(A) of Schedule 1 to FEMA 20/2000-RB, totaling Rs. 13.49 crore; and a delay in filing Form FCGPR after issuing shares under Para 9(1)(B) of Schedule 1 to FEMA 20/2000-RB, amounting to Rs. 13.01 crore," as stated in the report.

In accordance with FEMA regulations, the Adjudicating Authority initiated proceedings by issuing a show-cause notice to the company and its responsible directors/officers during the period of the alleged violations.

Following this, the company sought the RBI's approval for compounding the violations under FEMA as per Section 15 of the Act.

Upon receiving a reference from the RBI, the ED granted no objection for the compounding, aligning with the Act's intent.

Consequently, the RBI, based on the ED's no objection, issued a compounding order on October 17, 2025, requiring a one-time payment of Rs. 4,72,490. This action has led to the termination of adjudication proceedings against the company and its officials, as well as any further legal disputes, according to the ED's statement.

Additionally, on Friday, the RBI also issued a compounding order under Section 15 of FEMA for Nearbuy India Private Limited, which similarly concluded proceedings against the company for alleged violations of the Act, as reported by the ED.