ED closes FEMA probe against Gujarat pharma firm following compounding order
Last Updated:July 16, 2026, 21:00 ISTRepresentational image (Image: News18)New Delhi, Jul 16 (PTI) The Enforcement Directorate (ED) on Thursday said it has closed a foreign exchange violation probe against a. . .
Last Updated:July 16, 2026, 21:00 ISTRepresentational image (Image: News18)New Delhi, Jul 16 (PTI) The Enforcement Directorate (ED) on Thursday said it has closed a foreign exchange violation probe against a Gujarat-based pharmaceutical company after the RBI issued a compounding order based on a “no objection" given by the central agency. The alleged contravention under the Foreign Exchange Management Act (FEMA) involved transactions worth over Rs 85 crore concerning Apothecon Pharmaceuticals. The Reserve Bank of India (RBI) compounded the contraventions with a one-time payment of Rs 40. 52 lakh, the ED said in a statement. Recommended StoriesThe agency initiated the investigation against the company based on “credible information. " “The Reserve Bank of India (RBI) has issued a compounding order on July 6 under section 15 of the FEMA in the case of Apothecon Pharmaceuticals which resulted into closure of investigation against the company for the compounded contraventions…the said order has been passed by RBI after issuance of a No Objection by the ED," the agency said. The agency was probing a total of FEMA contraventions under 11 heads against the company. The company filed an application before the RBI for compounding of the contraventions under FEMA while the investigation was underway. A compounding order in the regulatory context means a formal decision taken by an authority to settle an offence by allowing the defaulter to pay a monetary penalty instead of facing prosecution. Compounding is a provision available in FEMA, and the ED has been promoting it since last year in the spirit of the Union government’s “ease of doing business" and as a measure to reduce litigation. PTI MHS NES VN VN(This story has not been edited by News18 staff and is published from a syndicated news agency feed -PTI)News18 NewsletterHandpicked stories, in your inboxA newsletter with the best of our journalismKey Questions AnsweredA FEMA compounding order means a formal decision by an authority to settle an offense by allowing the defaulter to pay a monetary penalty instead of facing prosecution. This process can lead to the closure of investigations and termination of adjudication proceedings. First Published:July 16, 2026, 21:00 ISTNewsagency-feedsED closes FEMA probe against Gujarat pharma firm following compounding orderDisclaimer: Comments reflect users’ views, not News18’s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to ourTerms of UseandPrivacy Policy. Loading comments. . . Read More