In a statement issued on Monday Rajasthan Royals said it would appeal against the order. "Rajasthan Royals has today received an order from the ED. We are discussing the contents of the order with our lawyers and intend to launch a full appeal against the order."
The agency issued the first penalty order against Rajasthan Royals in mid-2011 and it recently moved the FEMA Adjudicating Authority in Delhi to vet its investigation in this case and issue final orders.
The penalty was imposed last week. All those penalised have been directed to pay the penalty to ED within 45 days.
"The investment was made much prior to the incorporation of the franchise; funds had been remitted in an irregular manner and shares were sought to be issued in contravention of FEMA regulations," an ED official said.
According to ED, the investments were also in contravention of FEMA rules on "transfer or issue of security by a person resident outside India" and "permissible capital account transactions".
The investments were further found to be violating rules on deals with payment to or for the credit of any person resident outside India.
Officials said while investigating the IPL issue, the ED has so far issued 24 show cause notices for violations of various rules by the BCCI, IPL franchises and banks.