Show Cause Notices to 61 Firms for Violation of FDI Norms

The Directorate of Enforcement has issued show cause notices to 61 firms, including Emaar MGF
Land, Sahara India Commercial Corp and McDonald's India for violation of FDI norms over three years.

DoE conducts investigations under Foreign Exchange Management Act, 1999 (FEMA) in respect of cases of violations of foreign direct investment (FDI) norms on receipt of references from various sources including the Reserve Bank.

"The Directorate has issued show cause notices on 61 companies for contravention of FDI norms during the last three financial years and the current financial year," Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Rajya Sabha.

The other companies which have been issued such notice include Libero Sports India, Risco Impex Co, Swift Chemicals, Salem Steel Industries, Spring Technologies and Westcot Hotels.

The violation of FDI regulations is covered under the penal provisions of the FEMA and such type of cases are referred by the RBI to the Directorate of Enforcement for further investigations, the Minister said.

She also informed that India attracted $9.45 billion foreign direct investment during April-May this fiscal.

Replying to a separate question, she said that "at present, there is no...proposal under consideration of the government to review extant FDI policy in e-commerce sector".