Genpact Dodges Legal Hurdle with RBI Compounding Relief

Genpact India has resolved a legal issue with the Enforcement Directorate regarding alleged violations of the Foreign Exchange Management Act (FEMA). The Reserve Bank of India issued a compounding order allowing Genpact to pay a penalty, thus averting further legal proceedings against the company.

Genpact India recently navigated a significant legal challenge, concluding a dispute with the Enforcement Directorate (ED) regarding alleged infractions of the Foreign Exchange Management Act (FEMA).

The Reserve Bank of India (RBI) facilitated a resolution by issuing a compounding order, permitting Genpact to make a one-time payment of Rs 4.72 lakh, thus avoiding further litigation and adjudication.

The case highlights an ongoing administrative push towards simplifying business operations by allowing compounding of minor civil violations, as emphasized by ED Director Rahul Navin in his recent address, aligning with the government's 'ease of doing business' initiative.

(With inputs from agencies.)