RBI Drops Prior Approval Requirement For Foreign Currency Note Write-Offs Exceeding USD 2,000

The Reserve Bank of India (RBI) has withdrawn the requirement for its prior approval before foreign currency notes exceeding USD 2,000 are written off and revised the reporting format for such write-offs. The change forms part of a broader revision of reporting requirements for Authorised Persons under the Foreign Exchange Management Act, 1999. It has been notified through A.P. (DIR Series) Circular No. 17 dated June 24, 2026, issued pursuant to the Foreign Exchange Management (Authorised...

Madras High Court Dismisses Flipkart Founders' Review Plea Against FEMA Proceedings

The Madras High Court has dismissed review petitions filed by Flipkart co-founders Sachin Bansal and Binny Bansal and three investors seeking reconsideration of an earlier order that declined to interfere with Enforcement Directorate proceedings under the Foreign Exchange Management Act (FEMA). Justice S Sounthar held that the petitioners have an effective statutory remedy under FEMA and that the issues raised by them must first be agitated before the adjudicating authority. “In view of the...

ED Closes FEMA Proceedings Against Apollo Hospitals After RBI Compounds Contraventions

The Enforcement Directorate (ED) on Wednesday said that adjudication proceedings under the Foreign Exchange Management Act (FEMA) against Apollo Hospitals Enterprises Limited have been terminated. This follows the Reserve Bank of India's (RBI) decision to compound the company's contraventions under the Act. The RBI passed the compounding order under Section 15 of FEMA after obtaining a "No Objection" from the ED, according to a press release issued by the agency on June 17, 2026. The...

India Opens Investment In Listed Equity Instruments To All Overseas Individuals

The Centre has expanded access to India's listed equity markets by allowing all individuals resident outside India to make portfolio investments in listed Indian companies on a repatriation basis. Previously, this facility was available only to Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs)The change comes through the Foreign Exchange Management (Non-Debt Instruments) (Third Amendment) Rules, 2026, notified by the Ministry of Finance on June 12, 2026. Through the amendment,...

ED Probe Against Myntra Closed After RBI Compounds FEMA Contraventions

The Reserve Bank of India (RBI) has compounded alleged violations of the Foreign Exchange Management Act (FEMA) by fashion e-commerce company Myntra Designs Private Limited, bringing an Enforcement Directorate (ED) investigation against the company to an end. The ED said it had launched the probe based on credible information about two alleged FEMA contraventions. One related to delays in filing Annual Performance Reports (APRs) in respect of overseas investments worth ₹42.85 crore. The other...

Seizure Under 37A FEMA Cannot Continue After Repatriation Of Foreign Exchange: SAFEMA Tribunal

On 14 May, the Appellate Tribunal under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act (SAFEMA) held that seizure of an equivalent asset in India under Section 37A of the Foreign Exchange Management Act (FEMA) cannot continue once the resident no longer holds the overseas asset and the equivalent foreign exchange value has been repatriated to India. A Bench comprising Members Balesh Kumar and Rajesh Malhotra allowed the appeal filed by Devendra N. Desai and set...

SAFEMA Appellate Tribunal Restores Seizure Of DMK MP Jagathrakshakan's Children's Properties In FEMA Case

The Appellate Tribunal under SAFEMA has partly allowed the ED's appeal in the foreign assets case involving DMK MP S. Jagathrakshakan and his family. It restored seizure of properties belonging to his children over shareholdings in a Singaporean company. It, however, upheld the release of properties belonging to Jagathrakshakan and his late wife. The Tribunal said the same shares could not be used to justify repeated attachment. The coram of Members Balesh Kumar and Rajesh Malhotra passed the...

SAFEMA Tribunal Reduces Garg Iron FEMA Penalty To ₹5.5 Lakh, Holds Customs Exoneration No Bar

The Appellate Tribunal under SAFEMA on 7 May held that Garg Iron & Energy Pvt. Ltd. violated Foreign Exchange Management Act (FEMA), 1999 by failing to repatriate unutilised foreign exchange and by relying on post-facto third-party adjustments without RBI approval. It also reiterated that Customs exoneration does not bar proceedings under FEMA.A Bench comprising Members Balesh Kumar and Rajesh Malhotra partly allowed the appeal and reduced the penalty from Rs. 11 lakh to Rs. 5.5 lakh, while...

SAFEMA Appellate Tribunal Cuts BPL, Ex-MD Penalties To ₹10L, ₹1L In ₹4.9 Crore FEMA Violation Case

The Appellate Tribunal under SAFEMA has reduced penalties on BPL Limited and its former Managing Director, Ajit G. Nambiar, to Rs. 10 lakh and Rs. 1 lakh respectively in a FEMA case over foreign remittances worth about Rs. 4.90 crore for which the company failed to prove imports. It, however, upheld the findings of contravention against both. The coram comprising Members Balesh Kumar and Rajesh Malhotra was hearing appeals against an August 31, 2016 order passed by the Joint Director,...

SAFEMA Appellate Tribunal Upholds ₹3 Crore FEMA Penalty Against Thomas Cook India

The Appellate Tribunal under SAFEMA at New Delhi has upheld penalties of Rs. 1.5 crore each imposed on Thomas Cook India Ltd. for contraventions relating to the issuance of forex cards worth over Rs. 14.29 crore to 255 persons while exonerating its General Manager Amit Bhatia. The tribunal, comprising members Balesh Kumar and Rajesh Malhotra, was dealing with appeals filed by Thomas Cook India Ltd. and Bhatia against the adjudication order dated March 30, 2020, passed by the Additional...

SAFEMA Appellate Tribunal Upholds ₹83 Lakh FEMA Penalty On Tata Capital Forex In ₹8.36 Crore Forex Card Case

The Appellate Tribunal under SAFEMA has upheld an Rs. 83 lakh penalty imposed on Tata Capital Forex Ltd. for violating foreign exchange laws in a case involving forex prepaid cards worth over Rs. 8.36 crore. It, however, granted partial relief to the company's former regional manager, Ashwin Savoor, by reducing his penalty from Rs. 83 lakh to Rs. 16.6 lakh. A coram of Members Balesh Kumar and Rajesh Malhotra observed: “Even though being an Authorised Person, they not only failed to be prudent...

Centre Mandates Govt. Route For Investments With Beneficial Ownership Linked To Border Countries

The Centre has mandated that investments into India in non-debt instruments, including equity, by entities or individuals from countries sharing a land border with India, as well as investments where the beneficial ownership is traceable to such countries, must be made only through the Government approval route, under amendments notified on May 1, 2026. The Ministry of Finance, Department of Economic Affairs, brought into force the Foreign Exchange Management (Non-debt Instruments) (Amendment)...