(a) whether formula one car racing event held in London had violated RBI guidelines;
(b) if so, whether Directorate of Enforcement is examining the issue; and
(c) if so, the details thereof?
(a) whether formula one car racing event held in London had violated RBI guidelines;
(b) if so, whether Directorate of Enforcement is examining the issue; and
(c) if so, the details thereof?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI S.S. PALANIMANICKAM)
a) M/s United Breweries Ltd., an Indian company, had entered into an agreement with M/s
Benetton Formula Ltd., U.K., for display of Kingfisher brand without prior approval of
Reserve Bank of India (RBI) and thereby acknowledged a debt of US $ 15 million.
(b & c) On the basis of investigation caused by the Directorate of Enforcement under the
provisions of Foreign Exchange Regulation Act, 1973 (FERA), a show cause notice was issued
to M/s United Breweries Ltd., Bangalore and its Chairman Shri Vijay Mallya. The case was
adjudicated by the Adjudicating Authority and the charges were dropped. The Directorate of
Enforcement filed a review petition before the Appellate Tribunal for Foreign Exchange
(ATFE), New Delhi, which was dismissed. The Directorate of Enforcement has filed an appeal
before the Hon’ble High Court of Delhi against the order of ATFE which is pending.
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