labels: ericsson, industry - general, sony electronics, nokia, telecom
Nokia, Sony, Ericsson among 11 MNCs guilty forex violations news
28 July 2006
Mumbai: Nokia, Sony and Ericsson are among 11 multinational corporations facing a total Rs 36.12 crore in penalty for violating foreign exchange regulations in the country. The Appellete Tribunal for Foreign Exchange has, in its ruling earlier last week, confirmed the penalty imposed by the Enforcement Directorate (ED) on them, official sources said.

Other companies penalisd on the ground of contravening the provisions of section 8(1) of FERA, 1973.included Motorola India (P) Ltd, Fuji Bank, Bank of Tokyo-Mistubishi Ltd, Sumitomo Mitsui Banking Corporation and Deutche Bank AG.

The Act makes persons resident in India who have any amount of foreign exchange due or accrued in their favour responsible to get it realised and repatriated to the country within the specific period and the manner specified by RBI.

The Directorate of Enforcement has found the Indian arms of these companies violating foreign exchange companies in relation to payment of salaries to their expatriate employees working here in foreign currency.

This was done without the permission of the Reserve Bank of India and despite the various show-cause notices issued by the ED

 

 

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Nokia, Sony, Ericsson among 11 MNCs guilty forex violations