FEMA violation: ED issues 7,272 cr showcause notice to firm


The Enforcement Directorate (ED) on Friday said it has issued a Rs 7,272 crore showcause notice to Transcorp International Limited and its promoter-director Ashok Kumar Agarwal, and Managing Director Gopal Krishan Sharma for contravention of provisions of the Foreign Exchange Management Act (FEMA).

The company Transcorp International Limited is listed on BSE. It is having Authorised Dealer Category-II License from the Reserve Bank of India (RBI), and is authorised to undertake various permissible money changing (Forex) transactions, outward remittances activities etc.

It was also an Authorised Person and Indian Agent under Money Transfer Service Scheme License by the RBI and was a major market player of MTSS business with annual pay-outs in the range of Rs 3,000 – Rs 4,500 crore, before sale of the business to Ebixcash World Money India Limited in January 2018.

During the course of ED investigation, it was learnt that the company had made serious lapses of mandatory requirements as per extant RBI Master Directions and instructions on Know Your Customer (KYC) norms/ Anti-Money Laundering (AML) Standards/ Combating the Financing of Terrorism (CFT) for Indian Agents under MTSS in respect of cross-border inward remittance activities, resulted in the said contravention under the FEMA.

Based on the findings of the investigation, the ED has issued a Rs 7,272 crore showcause notice to the company.



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