The Enforcement Directorate has issued show cause notices to Transcorp International Limited and others for alleged contravention of the Foreign Exchange Management Act (FEMA), to the tune of ₹7,272 crore.
The notices have also been sent to the company’s promoter director, Ashok Kumar Agarwal, and managing director, Gopal Krishan Sharma, said the ED on April 1, 2022.
Listed on the Bombay Stock Exchange, the company has an Authorised Dealer Category-II licence from the Reserve Bank of India (RBI) and is allowed to undertake various permissible money changing (forex) transactions, outward remittances activities, etc.
“It was also an Authorised Person and Indian Agent under the Money Transfer Service Scheme (MTSS) license by the RBI and was a major market player of MTSS business with annual pay-outs in the range of ₹.3,000- ₹4,500 Crore, before sale of the business to Ebixcash world Money India Limited in January 2018,” the agency said.
According to the ED, the company and its board of directors had made serious lapses of mandatory requirements as per the existing RBI master directions and instructions on the Know Your Customer (KYC) norms/anti-money laundering standards/combating the financing of terrorism for Indian Agents under the MTSS in respect of cross-border inward remittance activities.
