Notice to Apollo for 'FEMA breach'

MUMBAI: The Enforcement Directorate (ED) has sent a notice to Apollo Hospitals Enterprise on charges of possible Foreign Exchange Management Act (FEMA) violation. The notice has been sent to the company���s chairman Prathap Reddy and board of directors, said a senior ED official, who wished to remain anonymous.

The Chennai-based pharma firm was suspected of using Rs 63 crore of its global depository receipts (GDR) to buy shares of group companies between 2004 and 2007, he said. Apollo raised nearly Rs 300 crore though a GDR issue in 2004. The company confirmed receiving the notice.

SP Bhatia, head attorney (corporate division) at MV Kini & Co, said: ���Penalties and fines can be imposed for FEMA violations. But if it includes misutilisation of funds, then SEBI could also get involved. Either criminal or civil proceedings can be initiated. This is a very serious issue.���