Enforcement Directorate slaps ₹230 crore fine on PwC for FEMA violations

The adjudicating authority slapped a ₹230.40 crore penalty for the Foreign Exchange Management Act (FEMA) violation on global accounting firm PricewaterhouseCoopers (PwC) and six others, the Enforcement Directorate (ED) said. The ED's Special Director (Eastern Region), held the company guilty of violation of section 10(6), 6(2), 6(3) and 9(b) of the FEMA, 1999 for receiving investments in the guise of purported grants in non-permitted sector without the Reserve Bank of India’s (RBI) approval. “During the course of investigation it was revealed that PwC had received $4,98,42,747/ equivalent to Rs 229 crore as purported grants from PricewaterhouseCoopers Services BV. The funds so received as ‘grants’ have been utilised for various business purposes including acquisition of other Indian companies and paying non-compete fee and accordingly a complaint was filed,” said the agency. 

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