New Delhi Jan 9 (UNI) The Reserve Bank of India (RBI) has issued a compounding order, effectively terminating legal proceedings against Kakinada Seaports Limited for violations of the Foreign Exchange Management Act (FEMA), ED officials said on Friday.
The ED said that the order, dated December 12, 2025, was passed under Section 15 of FEMA. It allowed the company to settle the case with a one-time payment of Rs 21.68 lakh, thereby closing the adjudication process and preventing further litigation.
The ED had initiated the investigation based on credible information. Upon completing its probe, the ED filed a formal complaint with the Adjudicating Authority in 2024, citing three primary contraventions: — Delay in reporting foreign inward remittances totalling over Rs 22.87 crore; delay in filing the required FC-GPR form with the RBI after issuing shares, involving over Rs 23.31 crore; and, delay in the issuance and allotment of shares amounting to over Rs 7.20 crore.
The Adjudicating Authority subsequently issued a show cause notice to the company and its responsible directors in September 2024. Kakinada Seaports later applied to the RBI for compounding the contraventions. The RBI acted on the application after the ED, on reference, issued a “No Objection” for the settlement.
The RBI’s compounding order formalises this settlement, bringing the matter to a close.
