ED Clears Way for RBI Settlement in Apollo Hospitals Case

The Reserve Bank of India (RBI) has compounded Foreign Exchange Management Act (FEMA) violations worth ₹2,424.44 crore involving Apollo Hospitals Enterprise Limited by imposing a one-time penalty of ₹17.76 crore. According to the Enforcement Directorate (ED), RBI issued compounding orders under Section 15 of FEMA, thereby settling the violations and bringing an end to the legal proceedings initiated against the company. Additionally, Apollo Hospitals directors and senior officials—Preetha Reddy, Suneeta Reddy, S.K. Venkataraman, Akhileswaran Krishnan, and S.M. Krishnan—have each been fined ₹18 lakh.

The violations included accepting foreign direct investment (FDI) in a retail trading segment where such investments were prohibited without prior government approval, irregular issuance of Foreign Currency Convertible Bonds (FCCBs), and receiving foreign investments beyond permissible limits under the FII-PIS route and sectoral FDI caps. The ED stated that after conducting an investigation and filing a complaint before the adjudicating authority, Apollo Hospitals approached the RBI seeking compounding of the violations. Following a no-objection communication from the ED, the RBI approved the settlement, resulting in the closure of all FEMA-related proceedings against the company.