Twelve MNCs penalised for violation of FERA

New Delhi, July 28 (UNI) Upholding the orders passed by the Enforcement Directorate(ED), the Foreign Exchange Regulation Appellete Tribunal has booked twelve major multinationals, including global giants Nokia and Sony Ericsson, for violating the Foreign Exchange Regulation Act(FERA) and also slapped a penalty of Rs 40 crore on them.

Sources said the ED had found that these Indian arms of the MNCs had violated FERA laws by way of payment of salaries to their expatriate employees working in India in foreign currency.

The ED had issued various showcause notices to Motorola India (P) Ltd, Nokia India (P) Ltd, Sony India, Fuji Bank, Bank of Tokyo-Mistubishi Ltd, Sumitomo Mitsui Banking Corporation and Deutsche Bank AG on the grounds that they had contravened the provisions of Section 8(1) of FERA, 1973.

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