‘Show cause notices to 61 firms including McDonald’s India for violation of FDI norms’
The Directorate of Enforcement has issued show cause notices to 61 firms, including Emaar MGF Land, Sahara India Commercial Corp and McDonald’s India for violation of FDI norms over three years.
DoE conducts investigations under Foreign Exchange Management Act, 1999 (FEMA) in respect of cases of violations of foreign direct investment (FDI) norms on receipt of references from various sources including the Reserve Bank.
The other companies which have been issued such notice include Libero Sports India, Risco Impex Co, Swift Chemicals, Salem Steel Industries, Spring Technologies and Westcot Hotels.
The violation of FDI regulations is covered under the penal provisions of the FEMA and such type of cases are referred by the RBI to the Directorate of Enforcement for further investigations. India has attracted $9.45 billion foreign direct investment during April-May this fiscal.