VEVarroc Engineering541578Regulatory penalty

RBI compounding order imposes ₹3,91,000 for delay in repatriation of dues

RBI compounding order dated October 13, 2026 imposes a compounding amount of ₹3,91,000/- on the company for delay in repatriation of dues receivable from a foreign entity under FEMA (Overseas Investment) Regulations, 2022.

By ScoutQuest · Wed 14 Oct 2026, 6:14 PM IST · 2 min read

Compounding Amount

₹3,91,000/-

Order Date

October 13, 2026

Regulatory Authority

Reserve Bank of India (RBI), Foreign Exchange Department, Mumbai

What the company informed the exchanges

• The company has received a compounding order from the Reserve Bank of India (RBI), Foreign Exchange Department, Mumbai.
• The order is dated October 13, 2026.
• The order imposes a compounding amount of ₹3,91,000/- (Rupees Three Lakh Ninety-One Thousand Only).
• The company had itself shared an application with the RBI seeking compounding of certain contraventions, and that application now stands disposed of.

What the contravention was

• The contravention related to delay in repatriation of dues receivable from a foreign entity beyond the prescribed period.
• This falls under the Foreign Exchange Management Act, 1999 read with the Foreign Exchange Management (Overseas Investment) Regulations, 2022, specifically Regulation 9(4) of the FEMA (Overseas Investment) Regulations, 2022.
• In simple terms, money that an Indian company was to receive back from its overseas entity was not brought back within the time the rules require.

What compounding means

• Compounding is a process where a person or company applies to the regulator to settle a contravention by paying a specified amount.
• Once the compounding order is passed, the application is treated as disposed of.
• The company chose to apply for compounding rather than contest the matter, and the RBI has now passed its order on that application.

Impact stated by the company

• Except for the compounding amount of ₹3,91,000/-, the company states that there is no material impact on its financial, operational or other activities.
• This is the company's own assessment of the impact, disclosed in the annexure to its intimation.

How a retail investor might read this

• This is a regulatory development involving a foreign exchange compliance lapse, disclosed by the company on its own.
• The monetary element placed on record is the ₹3,91,000/- compounding amount; the company links no other cost to the matter.
• The disclosure sets out the authority, the nature of the order, the date of the order, the contravention, and the impact in the company's words.

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