RBI imposes penalty against Nearbuy India Pvt. Ltd. for FEMA violations

December 19, 2025

The Reserve Bank of India (RBI) issued a compounding order against Nearbuy India Pvt. Ltd. under Section 15 of the Foreign Exchange Management Act, 1999 (FEMA) on October 17, 2025. The case related to the violation of FEMA provisions, which resulted in the investigation being concluded and action being taken against the company.

Investigation and Report on FEMA Violations

The Directorate of Investigation (ED) initiated an investigation into the case based on credible information received. After the investigation was completed, the ED filed a complaint on December 3, 2024, alleging FEMA violations. The main violations for which compounding was initiated are:

Delay in foreign internal payment under paragraph 9(1)(A) of FEMA, involving ₹35.82 crore.

Delay in filing Form FCGPR after issue of shares under paragraph 9(1)(B), involving ₹73.01 crore.

Action and notice issued against officials

After filing a complaint under the provisions of FEMA, a show cause notice was issued on February 27, 2025 to the company and its directors/officers who were responsible for the affairs of the company during that period.

Approval for compounding by RBI

The company subsequently submitted an application to RBI for compounding for the above violations. Based on the ED’s “no objection” report, RBI passed a compounding order with a lump sum payment of ₹4,28,297 on October 17, 2025. With this, the action against the company and its officials under FEMA was quashed.