ED issued Show Cause Notice to Promoter Director & Managing Director for contravention of FEMA Provisions Worth Rs. 7272 Cr

The Directorate of Enforcement (ED) has issued a Show Cause Notice to Transcorp International Limited and its promoter director Dr. Ashok Kumar Agarwal and Managing Director Gopal Krishan Sharma for a Rs. 7272 Crore violation of the Foreign Exchange Management Act (FEMA), 1999.

Transcorp International Limited is a company that is listed on the BSE. It holds an Authorised Dealer Category-II licence from the RBI and is permitted to conduct various permissible money changing [Forex] transactions, outward remittances activities, and so on. It was also an Authorised Person and Indian Agent under the RBI’s Money Transfer Service Scheme License and a major market player in the MTSS business, with annual pay-outs ranging from Rs 3000- Rs 4500 Crore, before being sold to Ebixcash World Money India Limited in January 2018.

During the course of the ED investigation, it was discovered that the company (and its Board of Directors) had made serious lapses in 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, which resulted in the

Based on the investigation’s findings, the ED issued a Rs 7,272 crore Show Cause Notice to the company and its Promoter/Director under the provisions of FEMA, 1999.