The enforcement directorate has issued show cause notices to operators and other organisations for the alleged violation of foreign exchange norms under the Foreign Exchange Management Act (FEMA), say news reports. The enforcement directorate has estimated the violations to be worth Rs 38.05 billion.
The agency has issued show cause notices to the organisations following its investigation into the allocation of 2G spectrum by the government. Show cause notices have been sent to Loop Telecom Limited, New Delhi for Rs 5.49 billion, Loop Mobile (India) Limited, Mumbai for Rs 0.26 billion, DB Realty Limited, Mumbai for Rs 28.31 billion and ETA Star Property Developers Limited, Chennai for Rs 3.99 billion.
The notices sent to these companies have cited various charges of violation guidelines put in by the Reserve Bank of India (RBI) regarding the receipt of foreign direct investment (FDI) and routing of funds to and from other countries. Loop Telecom Limited, Delhi and Loop Mobile Limited, Mumbai have been issued notices for alleged violation of FEMA for their failure to report to RBI the receipt of FDI and issue of shares to foreign investors.
DB Realty Limited, Mumbai has also been found guilty of a similar violation under section 6 of the FEMA. Chennai based ETA Star Property has been charged by ED for its failure to issue shares against FDI within 180 days and to report to RBI the issue of shares to foreign investors.
