Firm Matters

New Delhi: Khaitan & Co, which represented the BC Jindal Group in proceedings relating to foreign remittances by its entities stated that the Enforcement Directorate (ED), following the adjudication proceedings under Section 16 of Foreign Exchange Management Act (FEMA), has concluded that no substantive contravention under the overseas investment regime was made out against the Group. The adjudication has accordingly established that the alleged substantive FEMA violations against the Group were not sustainable.

Following detailed responses, legal submissions and representations made by Atul Pandey (Partner) and Hirak Mukhopadhyay (Partner) of Khaitan & Co, the Directorate of Enforcement accepted the Group’s position on the substantive issues and observed that the documents and information furnished during the inquiry demonstrated that the overseas direct investment was permissible under the automatic route.

Atul Pandey, Partner, Khaitan & Co LLP, said: “It was duly established that the investment was undertaken for the acquisition of a legal foreign business, routed entirely through authorised banking channels, supported by valuation, transaction documentation, and requisite filings with the Reserve Bank of India.

As of today, the BC Jindal Group has discharged all amounts arising from the adjudication and there have been no further inquiries or proceedings pending against the Group or its group entities in connection with these matters.”

The Firm advised and represented the Group from the commencement of the investigation and search proceedings in September 2025 through the adjudication process, including on the overseas direct investment, related FEMA issues and regulatory regularisation with the Reserve Bank of India. The detailed responses and representations made on behalf of the Group therefore resulted in the substantive allegations being successfully addressed and the proceedings before the ED being brought to a close.