- The Reserve Bank of India (RBI) has issued a compounding order under Section 15 of FEMA, 1999 in the case of Ripe Accountancy Services Pvt. Ltd., resulting in the closure of proceedings against the company.
- The order was issued after the Directorate of Enforcement (ED) provided its No Objection Certificate (NOC) following completion of its investigation.
- The case involved multiple FEMA compliance violations, including:
- Failure to report Form ARF for foreign inward remittances within the prescribed timeline.
- Delay in filing Form FC-GPR related to foreign investment reporting.
- Failure to refund excess share application money within the stipulated period.
- Non-filing/delayed filing of Foreign Liabilities and Assets (FLA) Returns for multiple financial years between FY18 and FY24.
- The violations covered transactions and reporting requirements under various FEMA regulations and notifications.
- Following the investigation, the company approached RBI seeking compounding of the contraventions under FEMA provisions.
- Based on the ED's no-objection, RBI passed a compounding order dated January 30, 2026, imposing a one-time settlement amount of ₹1.77 lakh.
- With the payment of the compounding amount:
- The FEMA contraventions stand regularized.
- Adjudication proceedings against the company have been terminated.
- Further litigation related to these violations has been avoided.
- The development highlights RBI's compounding mechanism, which allows entities to resolve certain FEMA compliance lapses through settlement rather than prolonged enforcement proceedings.
RBI Closes FEMA Case Against Ripe Accountancy Services After ₹1.77 Lakh Settlement
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