New Delhi, March 12 (UNI) The Directorate of Enforcement (ED) on Thursday said that the Reserve Bank of India (RBI) has issued a compounding order in the case of Metrocorp Infrastructure Limited for contraventions under the Foreign Exchange Management Act, 1999 (FEMA).
According to the ED, the RBI issued the compounding order on February 10, 2026 under Section 15 of FEMA, which resulted in the termination of adjudication proceedings against the company. The order was passed after the ED issued a “No Objection” for compounding of the violations.
The ED said that the investigation was initiated under FEMA based on credible information. After completing the probe, the agency filed a complaint under Section 16 of FEMA before the Adjudicating Authority highlighting certain contraventions by the company.
The violations included late reporting of foreign inward payments under Para 9(1)(A) of Schedule 1 to FEMA 20/2000-RB covering an amount of ₹110,62,08,604.51. The second contravention involved late filing of Form FCGPR after issuance of shares under Para 9(1)(B) of the same schedule, also covering ₹110,62,08,604.51.
Following the investigation, the Adjudicating Authority had initiated proceedings by issuing a show cause notice dated January 10, 2023 under Section 16 of FEMA to the company and its directors and officers responsible for the conduct of business during the relevant period.
The company later filed an application before the RBI seeking compounding of the contraventions under Section 15 of FEMA. Upon reference from the RBI, the ED issued a no objection for the compounding.
Based on the ED’s no objection, the RBI compounded the contraventions through its order dated February 10, 2026 with a one-time payment of ₹1,03,320. The order has resulted in termination of adjudication proceedings against the company and closure of further litigation in the matter.
