ED slaps over Rs 229-cr FEMA show cause penalty against PwC

The ED has slapped an over Rs 229-crore FEMA violation show cause penalty notice against multi-national accounting firm PricewaterhouseCoopers (PwC), officials said on Friday.

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 is amounting to USD 4,98,42,747 which is equivalent to Rs 2,29,67,21,906, the order accessed by PTI said.

Officials said the company along with other noticees received investments from Ms PricewaterhouseCoopers Services BV by "falsely" showing them as 'grants' so as to avoid attracting provisions of FEMA which require approval of the government or to say the Reserve Bank of India. "The adjudicating authority during the course of adjudication has held the company guilty of violation of section 10(6), 6(2), 6(3) and 9(b) of FEMA, 1999 for receiving investments in the guise of purported grants in non permitted sector without the approval of the RBI, " the order said.

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

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