RBI compounds FEMA violations by BPTP Limited and its directors

The Reserve Bank of India (RBI) issued a press release announcing that it has compounded Foreign Exchange Management Act (FEMA) violations by BPTP Limited and its directors, resulting in the termination of the investigation and further proceedings for these specific contraventions.

Who it concerns: M/s. BPTP Limited (formerly Business Park Town Planners Private Limited), its directors Kabul Chawla and Sudhanshu Tripathi, the Reserve Bank of India (RBI), and the Enforcement Directorate (ED).

What the ED says it did

• RBI issued compounding orders on 17.09.2026 under Section 15 of FEMA, 1999.
• The contravention involved the issuance of shares to foreign investors with an optionality clause assuring an assured return/exit price, violating Regulation 5(1) read with paragraph 2 of Schedule 1 to FEMA 20/2000-RB.
• The sum involved in the contravention was INR 5,37,50,00,000/-.
• BPTP Limited was required to make a one-time payment of INR 4,03,62,500/-.
• Directors Sudhanshu Tripathi and Kabul Chawla were each required to make a one-time payment of INR 40,36,250/-.
• The Enforcement Directorate (ED) issued a No Objection Certificate (NOC) for the compounding.
• Upon payment, the investigation and further proceedings regarding this specific contravention were terminated.

Also in the document

• The RBI stated that compounding facilitates voluntary compliance, reduces avoidable litigation, and promotes ease of doing business.
• The document notes that FEMA is primarily a civil legislation and that certain serious contraventions (such as those suspected of money-laundering or terror financing) are not compoundable.
• The RBI is the competent authority to compound eligible contraventions under Rule 3 of the Foreign Exchange (Compounding Proceedings) Rules, 2024.