Tata Motors Passenger Vehicles Limited has received a compounding order from the Reserve Bank of India for a historical non-compliance under the Foreign Exchange Management Act, 1999. The company will pay a compounding amount of ₹2,00,000 (Rupees Two Lakh only) concerning a foreign security issue dating back to 2015. The underlying investment was divested in March 2022, and this resolution has no material impact on the company’s operations.
FEMA Compliance Resolution by RBI
Tata Motors Passenger Vehicles Limited has been directed by the Reserve Bank of India (RBI) to pay a compounding amount of ₹2,00,000/- (Rupees Two Lakh only). This order, dated August 20, 2026, addresses a non-compliance under Regulation 5(1) of the Foreign Exchange Management (Transfer and Issue of any Foreign Security) Regulations, 2004. This matter pertains to a historical compliance issue related to an overseas investment made in 2015.
Historical Context and Current Status
The non-compliance involved the creation of an ODI-FDI structure in 2015 without prior approval from the RBI. The company confirms that this overseas investment was divested in March 2022, meaning the asset is no longer held. Consequently, the compounding order resolves this past compliance matter, and the company is in the process of making the payment. There is expected to be no material impact on the financial or operational activities of the listed entity due to this order.
Source: BSE
