RBI compounds FEMA violations by Metrocorp Infrastructure Ltd; ED proceedings terminated

NEW DELHI: In a latest development, the Reserve Bank of India (RBI) has passed a compounding order against Metrocorp Infrastructure Limited for violations of foreign exchange regulations under the Foreign Exchange Management Act, 1999 (FEMA).

This has resulted in the termination of the adjudication proceedings initiated by the Directorate of Enforcement (ED).

The compounding order was passed by the RBI on February 10, 2026, on the basis of a “No Objection” from the Directorate of Enforcement (ED), which had initiated a probe against Metrocorp

Infrastructure Limited based on credible information that the company had violated foreign exchange regulations.

According to sources, the ED had initiated a probe against Metrocorp Infrastructure Limited for violating FEMA regulations and had subsequently filed a complaint against the company for violating FEMA regulations under Section 16 of FEMA.

In the complaint, the ED had pointed out that the company had violated FEMA regulations on two counts by delaying the reporting of foreign inward remittances and by delaying the filing of Form FCGPR after the issuance of shares to foreign investors.

The late reporting of foreign inward remittances related to an amount of Rs 110.62 crore under Para 9(1)(A) of Schedule 1 of FEMA 20/2000-RB. In addition, the company had also not filed the FCGPR under Para 9(1)(B) of Schedule 1 of FEMA 20/2000-RB relating to the issue of shares in respect of foreign investment.

Following this complaint filed by the ED, a show cause notice was issued by the adjudicating authority on January 10, 2023, against the company and its directors/officers responsible for the conduct of the company’s business during that period.

Thereafter, Metrocorp Infrastructure Limited filed an application for compounding of these contraventions under Section 15 of FEMA with the RBI.

On receipt of this reference from the RBI, a “No Objection” was issued by the ED for compounding these violations under the provisions of the Act.

Consequently, the RBI has compounded these contraventions by accepting a one-time payment of Rs 103,320 from the company under Section 15 of FEMA, resulting in the termination of adjudication proceedings against the company, thereby bringing this case to a close without any litigation under the provisions

of FEMA.