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Nokia, Sony, Ericsson found guilty of foreign exchange violation

Friday, 28 July 2006 - 11:19pm IST
Nokia, Sony and Ericsson were among 11 firms whose Indian operations were found guilty of violating foreign exchange regulations.

NEW DELHI: Global giants Nokia, Sony and Ericsson were among 11 firms whose Indian operations were found guilty of violating foreign exchange regulation by an appellete tribunal.

In its ruling earlier last week, the appellate tribunal for foreign exchange confirmed a penalty of Rs 36.12 crore imposed by the enforcement directorate (ED) on them, official sources said here on Friday.

While Ericsson India has been fined Rs 15 crore, Motorola India, Fuji Bank and Samsung have been fined Rs 1 crore each.

The others were Nokia (Rs 5 crore), UFJ Bank Limited (Rs 45 lakh), Deutsche Bank AG (Rs 25 lakh), Bank of Tokyo (Rs 5.5 crore), Sumitomo Mitsui Banking Corporation (Rs 35 lakh), Sony India (Rs 5 crore) and H Shiraki (Rs 1.5crore).

This was done without the permission of the Reserve Bank of India (RBI). The ED had issued various show-cause notices to Motorola India, Nokia India, Sony India, Fuji Bank, Bank of Tokyo-Mistubishi Ltd, Sumitomo Mitsui Banking Corporation and Deutsche Bank AG on the ground that they had contravened the provisions of Section 8(1) of FERA, 1973.

The Act “casts the responsibility on the persons resident in India who have any amount of foreign exchange due or accrued in their favour to get the same realised and repatriated to India within the specific period and the manner specified by RBI”.




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