Enforcement Directorate (ED) has issued a Show Cause Notice to Transcorp International Limited and its promoter director Ashok Kumar Agarwal and Managing Director Gopal Krishan Sharma in connection with the violation of Foreign Exchange Management Act (FEMA).
According to the official statement, The case pertains to a contravention of provisions of FEMA regulations to the tune of Rs. 7272 Crore.
During the course of the ED investigation, it was found that the company (and its Board of Directors) has made serious lapses of mandatory requirements as per extant RBI Master Directions and instructions on Know Your Customer (KYC) norms/ Anti-Money Laundering (AML) Standards/ Combating the Financing of Terrorism (CFT) for Indian Agents under MTSS in respect of cross-border inward remittance activities, resulted in the said contravention under FEMA,1999.
Based on the findings of the investigation, ED has issued a Rs 7,272 Crore Show Cause Notice to the company and its Promoter/Director within the provisions of FEMA, 1999.
The company Transcorp International Limited is a company listed on BSE. It is having Authorised Dealer Category-II License from RBI and is authorized to undertake various permissible money changing [Forex] transactions, outward remittances activities etc.
It was also an Authorised Person and Indian Agent under Money Transfer Service Scheme License by RBI and was a major market player of MTSS business with annual payouts in the range of Rs 3000- Rs 4500 Crore, before the sale of the business to Ebixcash world Money India Limited in January 2018.
( With inputs from ANI )
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