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 contraventions were compounded upon payment of ₹17.76 crore by Apollo Hospitals. Five of its directors and officers paid ₹18 lakh each. They are Preetha Reddy, Suneetha Reddy, S.K. Venkatraman, Akhileswaran Krishnan, and S.M. Krishnan.

The ED said the compounding order has resulted in the termination of adjudication proceedings under FEMA against the company in relation to the contraventions. It also brings an end to further litigation arising from the matter.

The contraventions related to Apollo Hospitals' receipt of foreign investment in its retail trading business without the requisite approvals. They also concerned foreign investment exceeding prescribed limits, issuance of Foreign Currency Convertible Bonds (FCCBs) in violation of FEMA regulations, and breach of the then-applicable foreign shareholding cap for multi-brand retail trading.

According to the ED, the company had received foreign direct investment in a retail trading sector where such investment was prohibited at the relevant time. It had also subsequently received foreign investment without the required government approval.

The agency said the company had additionally received foreign investment through the FII-PIS route beyond the permitted limit. It had also breached the then-applicable 51% sectoral cap for foreign shareholding in multi-brand retail trading.

The ED said it had initiated an investigation under FEMA based on credible information. After completing the probe, it filed a complaint before the Adjudicating Authority under Section 16 of the Act.

Thereafter, Apollo Hospitals approached the RBI seeking compounding of the contraventions under Section 15 of FEMA. On a reference from the RBI, the ED issued a no-objection for the proposed compounding. The RBI subsequently passed the compounding order.