Mumbai, Feb 4: A day after IPL auction, Enforcement Directorate penalised Rajasthan Royals for violating Foreign Excange Maintenance Act (FEMA) rules.
According to reports, Enforcement Directorate has slapped the IPL team with a penalty of Rs 98.5 crore under FEMA contraventions.
Enforcement Directorate has issued a show-cause notice to IPL team Rajasthan Royals following FEMA violations, as they have also given 45 days to clear the penalty.
The Enforcement Directorate has slapped Jaipur IPL Cricket Pvt. Ltd (JIPL), owners of the IPL team Rajasthan Royals, its investors and owners for violating FEMA rules.
"ED had issued several Show Cause Notices in April 2011 to the JIPL, its directors and its foreign investors for severe irregularities in foreign investment. ED had found that the foreign investment in JIPL was made in flagrant contravention of FEMA; the investment was made much prior to incorporation of JIPL; funds had been remitted in an irregular manner and shares were sought to be issued in contravention of FEMA," the directorate said in a press release today.
While Rs 34 crore notice for evasion of forex duties has been issued against EM Sporting Holding, Mauritius and its directors, another notice for Rs 14.5 crore has been issued against Ms ND Investments, UK and its directors.
All the three parties can appeal against this penalty order or pay the same within 45 days.