StanChart Fined₹100 Crore for FEMA Violations

The probe was based on the communication sent by the RBI to investigate advance remittances received by certain entities for purchase of TMBL shares through escrow mechanism maintained with SCB.

Agencies
According to ED, the AA held SCB guilty of contraventions of the provisions of FEMA for opening the SCB Project Windmill escrow account without prior permission of the RBI.
MUMBAI: The adjudicating authority (AA) of the Enforcement Directorate (ED) has fined Standard Chartered Bank, Tuticorin-based Tamilnad Mercantile Bank and others for contraventions of provisions of the Foreign Exchange Management Act (FEMA) in a case relating to unauthorised allocation of shares.

While the AA imposed penalties of ₹100 crore on Standard Chartered Bank (SCB), a fine of ₹17 crore was slapped on Tamilnad Mercantile Bank (TMBL) and ₹35 crore on MGM Maran, the then chairman and director of TMBL.

ET, on September 8 reported on the penalty imposed by ED. SCB had then told ET that they were in the process of evaluating the order and were unable to comment further at this stage. The probe was based on the communication sent by the RBI to investigate advance remittances received by certain entities for purchase of TMBL shares through escrow mechanism maintained with SCB.


According to ED, the AA held SCB guilty of contraventions of the provisions of FEMA for opening the SCB Project Windmill escrow account without prior permission of the RBI.
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