Saturday, July 9, 2011

Enforcement Directorate of RBI (FEMA) slaps Rs 7,100 crores fine on Etisalat DB for FEMA violations

Enforcement Directorate of RBI (FEMA)  slaps Rs 7,100 crore fine on Etisalat DB for FEMA violations

Etisalat DB was accused of not reporting funds from abroad to RBI.

The Enforcement Directorate (ED) on July 8th 2011  slapped a Rs 7,100-crore penalty on Etisalat DB for alleged violations of the Foreign Exchange Management Act (FEMA).

ED, in a complaint before the Competent Adjudicating Authority for FEMA, said the penalty had been imposed for suspected violations of foreign exchange rules inside and outside the country.

ED said the violations included non-reporting of receipt of funds from abroad within the stipulated period to the Reserve Bank of India.
The company has been given 30 days to explain why it should not be fined.
Etisalat DB, a joint venture between UAE’s Etisalat and India’s DB Realty, was given licences to offer mobile services in 13 circles in 2008 when A Raja was the telecom minister. Raja is in judicial custody in the 2G scam case.

Etisalat DB (earlier Swan Telecom) chief Shahid Usman Balwa and Director Vinod Goenka are also in custody in the 2G scam.

ED had earlier charged Shahid Balwa-promoted Swan Telecom with committing FEMA violations to the tune of Rs 3,608 crore.

ED is also investigating other new telecom companies such as Loop Telecom and STel for FEMA violations.

Source : Business Standard 9th July 2011

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