reserve Bank of India
The Reserve Bank of India (RBI) has ended the action by giving relief to Ripe Accountancy Services Private Limited Company in the case of violation of some provisions of the Foreign Exchange Management Act (FEMA). The ongoing investigation and administrative process against the company has been stopped through compounding order.
Many irregularities were revealed in the ED investigation.
The matter came to light when the Enforcement Directorate (ED) investigated the company’s foreign investment-related transactions and compliance. During investigation, it was found that the company had not filed some necessary documents and returns related to foreign investment within the stipulated time limit. Apart from this, shortcomings like delay in reporting of foreign funds and not returning the additional share application amount within the stipulated time were also revealed.
The company accepted the mistake
After these irregularities, the matter was sent to RBI for compounding. The company filed an application with the Reserve Bank, accepting its procedural lapse and demanding settlement of the matter. Under the compounding process, companies get an opportunity to resolve technical or procedural violations by depositing the fine.
Approval received after no objection from ED
RBI had sought opinion from the Enforcement Directorate before taking a final decision on the matter. After receiving no objection from ED, the Reserve Bank issued the compounding order on January 30, 2026. Under the order, the company had to deposit a lump sum fine of Rs 1.77 lakh.
Legal and administrative action ended
After the prescribed amount was deposited, the ongoing judicial and administrative proceedings against the company under FEMA were ended. With this order of RBI, the matter has been completely settled and the company will not have to face any additional action.
Experts believe that this case is a signal for companies to be cautious about foreign investment and compliance with FEMA rules. Regulatory agencies may take action for not submitting timely reporting and documents, although resolution of such cases is also possible through the compounding process.
