Reserve Bank of India issued a compounding order after an ED probe found BPTP diverted foreign investment and promised assured returns via swap/put options; company and two directors must pay fines to close proceedings.
RBI imposed a total compounded penalty of ₹4,84,35,000 on BPTP Ltd and two directors for FEMA violations tied to 2007–08 FDI inflows.
Enforcement Directorate’s probe found swap/put option clauses promising assured returns and diversion of about ₹320 crore of FDI into fixed deposits and mutual funds.
# What happened
September 17, 2026, imposing a total penalty of ₹4,84,35,000 on BPTP Ltd (formerly Business Park Town Planners Pvt Ltd) and two of its directors for contraventions of the Foreign Exchange Management Act (FEMA) related to foreign direct investment received in 2007 and 2008.
# Who was fined and how much
# Why the penalty was imposed
The ED's investigation traced FDI inflows totaling ₹537.5 crore that the company received via the automatic route in 2007–08. The probe identified two principal breaches:
# Procedural background and legal route taken
ED filed a complaint in December 2025 alleging the FEMA violations. Show-cause notices were earlier issued in January 2016. BPTP sought voluntary compounding under Section 15 of FEMA.
Section 15 allows compounding of eligible non-serious contraventions (excluding money laundering and national-security–related offences). When the compounding sum is paid within the prescribed window under Section 15(2), pending legal proceedings against the company and its directors are terminated. The ED issued an NOC for compounding in this case, enabling the RBI order to close the matter upon payment.
# What this means for BPTP and the directors
If BPTP and the two directors pay the prescribed amounts within the stipulated period, the compounding order will terminate ongoing legal proceedings covered by the compounding. The order concludes a prolonged adjudication cycle that began with the ED probe into FDI received in 2007 and 2008.
# Immediate facts to note
# Practical takeaway
The RBI compounding order resolves the particular FEMA contraventions identified by the ED, subject to payment of the compounded sum. It shows the regulatory outcome available under Section 15 of FEMA when companies apply for voluntary compounding and receive ED NOCs for compoundable violations.
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