RBI orders developer BPTP, directors to pay Rs 4.84 crore penalty

The RBI has ordered real estate developer BPTP Ltd and two directors to pay Rs 4.84 crore to compound FEMA violations. An ED probe found contraventions in foreign investment received in 2007-08, including illegal clauses and misuse of funds.

The Reserve Bank of India (RBI) has ordered real estate developer BPTP Limited and two of its directors to pay a total of about Rs 4.84 crore to compound violations of foreign exchange rules linked to foreign investment received by the company, the Enforcement Directorate (ED) said in a post on Thursday.

The compounding orders were issued by RBI on September 17, 2026, under Section 15(1) of the Foreign Exchange Management Act (FEMA), 1999, after the ED issued a "No Objection" for compounding the contraventions, according to the agency.

Details of the Violations

The case relates to foreign direct investment received by BPTP Limited, formerly known as Business Park Town Planners Private Limited, in 2007 and 2008.

According to the ED, the company received about Rs 322.5 crore from CPI India I Ltd, Mauritius, in August 2007 and around Rs 215 crore from Harbour Victoria Investment Holding Ltd, Mauritius, in July 2008.

The agency said investigations under FEMA found violations relating to the receipt and use of the foreign investment. One of the contraventions related to agreements between BPTP and the foreign investors that contained clauses on put options and assured returns. The ED said these provisions were in violation of the FEMA rules applicable to such foreign investment at the time.

In another contravention, BPTP had initially invested around Rs 320 crore of the foreign investment in fixed deposits and mutual funds instead of using the money in its projects, the ED said.

Compounding Process and Penalty

Following its investigation, the ED had filed a complaint before the Adjudicating Authority in December 2025, after which adjudication proceedings were initiated against the company and its directors. BPTP subsequently approached the RBI seeking compounding of the FEMA contraventions.

The ED said it raised no objection to the application, following which the RBI issued the compounding orders. Under the orders, BPTP Limited has been directed to pay Rs 4.03 crore, while directors Kabul Chawla and Sudhanshu Tripathi have been directed to pay about Rs 40.36 lakh each. The total compounding amount is about Rs 4.84 crore.

The ED said payment of the compounding amount within the prescribed period would lead to termination of the adjudication proceedings relating to these FEMA contraventions.

Compounding under FEMA allows eligible civil contraventions to be settled by payment of an amount determined by the RBI, avoiding prolonged adjudication proceedings. (ANI)

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