Even Indian parents living in Mumbai had to pay the fees in US dollars, which violated the Foreign Exchange Management Act (FEMA).
The consul general of the United States in Mumbai, Michael Owen, who is also honorary member of the American School of Bombay (ASB) board, recently wrote to Reserve Bank of India (RBI) officials, requesting them to “guide” the ASB to resolve the issue of its earlier foreign exchange rule violations.
In his letter dated April 10, 2006, Owen described how the ASB collected a part of the fees from parents of students in US dollars. Even Indian parents living in Mumbai had to pay the fees in US dollars, which violated the Foreign Exchange Management Act (FEMA).
“We seek your guidance on how to proceed. We seek closure through condonation and compounding of the above practices. We submit that these past practices were utilised by the American School of Bombay in its best effort to develop a fine educational facility in Mumbai for expatriates in a difficult regulatory environment,” said Owen.
He added, “ASB is operationally compliant with regard to the FEMA and its regulations since 2004. We still have much to update our old trust deed and we look forward to this next phase of our development once these glaring regulatory issues are settled.”
On being questioned by DNA, Owen said, “We are in discussions with the Reserve Bank of India regarding an outstanding regulatory issue from several years ago involving ASB. It would be inappropriate for anyone to comment on this issue while discussions are under way.”
The compliance with laws began after the RBI gave permission to ASB to open a foreign currency account denominated in US dollars with a local bank in India in March 2004.
RBI spokesperson Alpana Killawala said, “Fees received in US dollars from foreign national parents or from the parent’s employer/head office would be credited to this account, and remittances abroad of salary payable to expatriate teachers and administrators, curriculum-related expenses as approved by the board of the school and local disbursements in rupees would be debited this account.”
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}