ED slaps over Rs 229-crore FEMA show cause penalty against PwC

The notice was issued under the Foreign Exchange Management Act (FEMA) after ED's Special Director (Eastern region) which is the adjudicating authority completed the probe, officials added.

ED slaps over Rs 229-crore FEMA show cause penalty against PricewaterhouseCoopers

The penalty which amounts to USD 4,98,42,747 is equivalent to Rs 2,29,67,21,906, the order said, as per PTI reports. (File)

The Enforcement Directorate Friday issued a showcause penalty notice of over Rs 229-crore FEMA violation against multi-national accounting firm PricewaterhouseCoopers (PwC), PTI reported.

The notice was issued under the Foreign Exchange Management Act (FEMA) after ED’s Special Director (Eastern region) which is the adjudicating authority completed the probe, officials told PTI. The penalty which amounts to USD 4,98,42,747 is equivalent to Rs 2,29,67,21,906, the order said, as per PTI reports.

As per PTI, officials claimed that Ms PricewaterhouseCoopers Services BV had invested “falsely” by showing them as ‘grants’ in the company and other noticees in order to avoid attracting provisions of FEMA which need government or RBI’s approval.

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“The adjudicating authority during the course of adjudication has held the company guilty of violation of section 10(6), 6(2), 6(3) and 9(b) of FEMA, 1999 for receiving investments in the guise of purported grants in non-permitted sector without the approval of the RBI, ” the order said.

The Supreme Court, in February last year, had directed ED to take over the probe against the firm and scrutinise affairs of the company from the point of view of FEMA.

-with PTI inputs

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