New Delhi: The Reserve Bank of India (RBI) has issued compounding orders in a case involving BPTP Limited and its directors Kabul Chawla and Sudhanshu Tripathi over alleged violations of foreign exchange regulations linked to foreign direct investment (FDI) transactions from 2007 and 2008.
The company and the two directors have agreed to pay a total compounding amount of ₹4.84 crore in connection with the FEMA violations.
The RBI said it issued the compounding orders on September 17, 2026, under Section 15(1) of the Foreign Exchange Management Act (FEMA), 1999, and the regulations, rules and notifications issued under the law.
Case Linked to ₹537.5 Crore Foreign Investment
The case originated from an investigation by the Enforcement Directorate’s Gurugram Zonal Office into foreign investment received by BPTP Limited, formerly known as Business Park Town Planners Private Limited.
The investigation examined around ₹537.5 crore received by BPTP from two Mauritius-based entities — CPI India I Ltd. and Harbour Victoria Investment Holding Ltd.
According to the findings, BPTP received approximately USD 77.67 million (around ₹322.5 crore) from CPI India I Ltd. on August 21, 2007, and USD 49.84 million (around ₹215 crore) from Harbour Victoria Investment Holding Ltd. on July 9, 2008.
Put Options and Assured Returns Under Scanner
Investigators found that the investment agreements contained provisions relating to put options and assured internal rates of return (IRR).
According to the investigation, such arrangements were not permissible under the FEMA provisions applicable to FDI transactions at that time.
The Enforcement Directorate had alleged that BPTP received foreign investment through the automatic route while providing investors assured returns through swap and put-option arrangements.
These arrangements were cited as violations of provisions of FEMA, 1999, and regulations governing the issuance of shares to foreign investors.
₹320 Crore Investment in Fixed Deposits, Mutual Funds
The investigation also found that BPTP allegedly invested around ₹320 crore of the foreign investment received from CPI India I Ltd. in fixed deposits and mutual funds instead of deploying the funds in its projects as required under the investment agreement.
This was treated as a separate FEMA violation in the case.
The RBI’s compounding order brings the proceedings concerning the reported FEMA violations to the compounding stage, with BPTP Limited and its two directors agreeing to pay the prescribed amount of ₹4.84 crore.