ED issues Rs 7,272 crore show cause notice to Transcorp International for FEMA violation
India Today
A show cause notice of Rs 7,272 crore for alleged contravention of provisions of Foreign Exchange Management Act has been issued against Transcorp, a BSE-listed company.
Enforcement Directorate (ED) has issued a show cause notice to Transcorp International Limited, its director Ashok Kumar Agarwal and managing director Gopal Krishan Sharma for contravention of provisions of Foreign Exchange Management Act (FEMA) to the tune of Rs 7,272 crore.
Transcorp International is a company listed on Bombay Stock Exchange (BSE). The firm has authorised dealer category-II license from the Reserve Bank of India and is authorised to undertake various permissible money changing [Forex] transactions and outward remittances activities.
“It was also an authorised person and Indian agent under the Money Transfer Service Scheme License by RBI and was a major market player of MTSS (Money Transfer Service Scheme) business with annual pay-outs in the range of Rs 3000- Rs 4500 crore, before sale of business to Ebixcash World Money India Limited in January 2018,” said the ED in a statement.
READ | Political executive will change, you are permanent: CJI Ramana to CBI
The ED has alleged that the company and its board of directors have 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, resulting in the contravention under FEMA.
“Based on the findings of the investigation, ED has issued a Rs 7,272 crore show cause notice to the company, its promoter and director within the provisions of FEMA,” ED said.
