PwC gets ~230-cr penalty notice for ‘FEMA violations’

The ED had taken over the probe against the firm on direction of the Supreme Court which asked it to look into the affairs of the company from the point of view of FEMA.

The ED has slapped an over ~230-crore FEMA violation show cause penalty notice against multi-national accounting firm PricewaterhouseCoopers (PwC) and others, officials said on Friday.

Officials said the company, along with other notices, received investments from PwC BV by “falsely” showing them as ‘grants’ so as to avoid attracting provisions of FEMA, which require approval of the government or the Reserve Bank of India. (HT image)

They said the notice was issued under the Foreign Exchange Management Act (FEMA) after completion of probe by the adjudicating authority which is the Special Director (Eastern Region) of the Enforcement Directorate. The penalty, to the firm and six others, totals to ~2,30,40,70,000, the order accessed by PTI said.

Officials said the company, along with other notices, received investments from PwC BV by “falsely” showing them as ‘grants’ so as to avoid attracting provisions of FEMA, which require approval of the government or the Reserve Bank of India. The ED had taken over the probe against the firm on direction of the Supreme Court which asked it to look into the affairs of the company from the point of view of FEMA.