(a) whether show cause notices under FERA were issued to
multinational companies for making payment abroad of salaries
and perks to their employees working in India without
obtaining necessary permission of the Reserve Bank of India;
(b) if so, whether the MNCs given reply to show cause notices; and
(c) if so, the details thereof and the action taken by the
Government thereon?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SHRIPAD Y. NAIK)
(a) Yes Sir. The Directorate of Enforcement has issued notices
to 18 multinational companies who were found to have contravened
the provisions of Foreign Exchange Regulation Act, 1973 with regard
to payment of salaries/perquisites, in foreign currency, to their
employees, who were resident in India.
(b) & (c) : The explanations given by the companies are part
of the adjudication proceedings, which are quasi-judicial in
nature. Adjudication proceedings in respect of five of the MNCs
have been completed by imposition of penalty.