Suzlon Energy announced that the Enforcement Directorate (ED), Mumbai Zonal Office-II, has levied a penalty of ₹25.00 Lakhs (Twenty Five Lakhs Only) on the company on March 23, 2026. The penalty stems from a procedural contravention related to a Bonafide transaction concerning foreign exchange regulations, specifically the export of services against a long-term export advance. Suzlon confirmed that the matter was previously reported to the Reserve Bank of India.
Regulatory Penalty Announcement
Suzlon Energy Limited has officially informed the stock exchanges regarding an order received from the Office of Directorate of Enforcement, Government of India, Mumbai-II Zonal Office. This order imposes a penalty amounting to Rs.25,00,000/- (Rupees Twenty Five Lacs Only) upon the company.
Details of Contravention
The enforcement action was initiated due to a contravention of Section 7 of the FEMA, 1999, read in conjunction with Regulation 15 of the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000. Specifically, the issue involved the failure to properly export goods against a long-term export advance and the subsequent non-receipt of required approval from the Reserve Bank of India for the set-off of the Long-term Export Advance against an invoice for the Export of Services. This resulted in an open entry in the EDPMS.
Procedural Context and Impact
The company clarified that this penalty relates to a procedural matter concerning a Bonafide transaction which had already been timely reported to the Reserve Bank of India. Suzlon explicitly stated that there is no material impact on the financial, operational, or other quantifiable activities of the Company resulting from this imposition.
The official date of receipt of this direction or order was 23rd March 2026.
Source: BSE
