RBI Issues FEMA Compounding Order for Apollo Hospitals and Five Directors Over Foreign Investment Violations
NEW DELHI, June 17, 2026: According to an official press release dated June 17, 2026 , the Reserve Bank of India (RBI) has issued a compounding order under Section 15 of the Foreign Exchange Management Act (FEMA), 1999, against M/s. Apollo Hospitals Enterprises Limited and five of its key directors and officers. The individuals named in the order include Smt. Preetha Reddy, Smt. Suneetha Reddy, S.K. Venkatraman, Akhileswaran Krishnan, and S.M. Krishnan. This compounding order, which effectively terminates ongoing adjudication proceedings against the company for compounded contraventions of FEMA provisions, was passed by the RBI following a “No Objection” clearance from the Directorate of Enforcement (ED).
The matter originated from credible information that prompted the ED to initiate an investigation under the provisions of FEMA. Following the completion of this probe, the ED filed a formal complaint under Section 16 of FEMA before the Adjudicating Authority. Apollo Hospitals subsequently submitted an application to the RBI seeking to compound the noted contraventions under Section 15 of the Act. Upon receiving a reference from the RBI, the ED granted its no-objection certificate, leading the central bank to compound four major violations. These infractions included the unauthorized receipt of Foreign Direct Investment (FDI) in the prohibited retail trading sector totaling Rs. 859,87,52,902/-, and the unlawful issuance of Foreign Currency Convertible Bonds (FCCBs) amounting to Rs. 70,02,47,500/-. Additional contraventions involved receiving foreign investments through the FII-PIS route that breached the 24% paid-up capital limit (amounting to Rs. 623,87,69,051/-), as well as breaching the overall 51% sectoral cap limit prescribed for foreign shareholding in multi-brand retail trading (amounting to Rs. 870,66,92,914/-).
To settle these regulatory breaches, the contraventions have been compounded through a one-time penalty payment. M/s. Apollo Hospitals Enterprises Limited has paid a sum of Rs. 17,76,80,121/-, while the five concerned directors and officers were fined Rs. 18,00,000/- each. This financial settlement has led to the absolute termination of all pending adjudication proceedings under FEMA against the healthcare major, successfully resolving the documented violations and preventing any further litigation on these matters.