In regulatory news, the RBI has resolved a Foreign Exchange Management Act contravention case involving Deccan Digital Networks Private Limited by issuing a compounding order on January 14, 2026. Under FEMA Section 15, the order extinguishes further proceedings after a nominal penalty payment.
ED initiated action based on inputs suggesting FEMA breaches, filing charges on December 27, 2012, via Section 16. The focus was on the company’s handling of foreign direct investment reporting.
Probe details showed delayed disclosure of Rs 11.82 crore foreign inflows and non-submission of FC-GPR within deadlines. FEMA’s framework strictly requires these steps to maintain forex transaction integrity.
Post a January 16, 2013, show-cause notice to stakeholders, the firm applied for compounding. RBI, armed with ED’s no-objection, finalized the settlement at Rs 1,03,333, closing adjudication and litigation threats.
This efficient closure exemplifies RBI’s compounding policy, which facilitates quick resolutions for technical violations. It benefits companies by minimizing disruption while upholding compliance standards.
Businesses in the digital and tech sectors, frequent FDI attractors, should take note: automated reminders for FEMA filings can prevent such scenarios. The case reinforces that while compounding is available, prevention through diligence remains ideal.