PricewaterhouseCoopers (PwC), officials said on Friday that “the Enforcement Directorate (ED) has slapped an over Rs 229 crore FEMA violation show-cause penalty notice against multi-national accounting firm.”
The amount of penalty is Rs 2,29,67,21,906 (USD 4,98,42,747).
An adjudicating authority (Special Director of Eastern Region) of the Enforcement Directorate has issued a show-cause penalty notice under the Foreign Exchange Management Act (FEMA) after completion of an investigation.
The ground of imposing a penalty by the officials is that the company along with other notices received investments from M/s PricewaterhouseCoopers Services BV by “falsely” showing them as ‘grants’ so as to avoid attracting provisions of FEMA which require the approval of the government or to say the Reserve Bank of India.
The order said “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 not permitted sector without the approval of the RBI.”
The ED had taken over the probe against the firm on directions of the Supreme Court which asked it to look into the affairs of the company from the point of view of FEMA.