Nokia, Sony, Ericsson among 11 MNCs guilty forex violations

28 July 2006

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