Enforcement Directorate slaps Rs 1,200 cr FEMA violation notice

ED on Monday slapped a Rs 1,200 crore FEMA violation notice in connection with alleged “wrongful” gain made to private multi-media company Devas by Antrix, the commercial arm of ISRO.

An order issued by the agency’s Special Director (southern region) in Chennai found Ms Devas Multimedia Private Limited, Antrix and others “contravening” the provisions of the Foreign Exchange Management Act (FEMA) on at least three counts after completing the over three year investigation in the deal that was struck in 2005.

The agency had registered a FEMA case in 2012 and is also probing the deal under anti-money laundering laws. Antrix had signed a deal with Devas in January, 2005 to provide it with crucial S-Band wavelength, which is primarily kept for strategic interests of the country. As per the order,the total violation under FEMA that has been established in the case is Rs 1,217.76 crore.

If the charges stand after the adjudication process that will begin now, the accused will be liable to penalty which could be three times of the amount contravened.