RBI Fines BPTP And Directors Rs 4.84 Crore For FEMA Breaches
By Business Desk
The Reserve Bank of India orders real estate developer BPTP and its directors to pay Rs 4.84 crore to resolve Foreign Exchange Management Act violations.
The Reserve Bank of India issued compounding orders directing real estate developer BPTP Limited and its directors to pay a total penalty of Rs 4.84 crore to resolve violations of the Foreign Exchange Management Act. This enforcement action follows an investigation into foreign direct investment transactions that occurred in 2007 and 2008.
The Breakdown of the Compounding Penalty
The financial obligation is split between the corporate entity and its individual leaders under the RBI order issued on September 17, 2026. The Enforcement Directorate had previously filed a complaint before the Adjudicating Authority in December 2025.
- BPTP Limited is required to pay Rs 4.03 crore.
- Director Kabul Chawla must pay approximately Rs 40.36 lakh.
- Director Sudhanshu Tripathi must pay approximately Rs 40.36 lakh.
Foreign Investment Violations Uncovered
The probe conducted by the Gurugram Zonal Office of the Enforcement Directorate investigated foreign investments totaling approximately Rs 537.5 crore received from two Mauritius-based firms. Specifically, the company received USD 77.67 million from CPI India I Ltd. in August 2007 and USD 49.84 million from Harbour Victoria Investment Holding Ltd. in July 2008.
- Investment agreements included prohibited clauses for assured internal rates of return and put options.
- BPTP invested about Rs 320 crore of the capital received from CPI India I Ltd. into mutual funds and fixed deposits instead of deploying it into its own projects.
The settlement allows the company to resolve these civil contraventions through a monetary payment after the Enforcement Directorate provided a No Objection to the compounding application. Adjudication proceedings will terminate if the total payment is completed within the specified timeframe.