RBI Orders BPTP, Two Directors to Compound FEMA Contraventions
RBI sets compounding amount for BPTP and two directors
The Reserve Bank of India issued orders on September 17, 2026, directing BPTP Limited and its directors Kabul Chawla and Sudhanshu Tripathi to pay a combined Rs 4,84,35,000 to compound FEMA contraventions linked to foreign investment received in 2007 and 2008. The Enforcement Directorate announced the orders on October 1, after giving its no-objection to the compounding.
The amount comprises Rs 4,03,62,500 payable by BPTP and Rs 40,36,250 payable by each director. The matter concerns approximately Rs 537.5 crore invested by two Mauritius-based entities. The orders relate to the handling and terms of those investments at the time, rather than to a named BPTP housing project.
The investments and the contraventions
BPTP, formerly Business Park Town Planners Private Limited, received approximately Rs 322.5 crore from CPI India I Ltd, Mauritius, in August 2007. In July 2008, it received about Rs 215 crore from Harbour Victoria Investment Holding Ltd, also based in Mauritius. The reported dollar values of the respective inflows were US$77.67 million and US$49.83 million.
The ED’s case described two areas of alleged non-compliance with FEMA rules applicable when the investments were made. One concerned provisions in investor agreements, including put options and assured returns, which the agency said were inconsistent with the rules governing those investments. The other concerned the initial placement of about Rs 320 crore in fixed deposits and mutual funds rather than its deployment in projects.
The ED filed a complaint before the Adjudicating Authority in December 2025, following which adjudication proceedings were initiated against the company and its directors. The RBI’s compounding orders were issued under Section 15(1) of the Foreign Exchange Management Act, 1999, after the ED provided its no-objection. Compounding provides a route to settle eligible FEMA contraventions through payment of an amount set by the competent authority.
- August 2007: approximately Rs 322.5 crore received from CPI India I Ltd.
- July 2008: approximately Rs 215 crore received from Harbour Victoria Investment Holding Ltd.
- September 17, 2026: RBI issued the compounding orders.
- October 1, 2026: the ED announced the orders and their terms.
A company-level matter, not a project announcement
The proceedings relate to the company’s historical foreign-investment transactions and do not identify a particular development, site or city as the subject of the orders. The amounts and allegations concern the investments and their treatment, not the specifications, construction or sales of an individual residential or commercial project.
The ED said that payment of the compounding amounts within the prescribed period would bring the adjudication proceedings relating to these contraventions to an end. The orders therefore address a defined regulatory matter tied to the 2007 and 2008 investments; they are not described as an assessment of BPTP’s wider business or its projects.
BPTP’s role in the proceedings
BPTP Limited is the real-estate developer named in the case and was previously known as Business Park Town Planners Private Limited. The company and the two directors were subject to adjudication proceedings following the ED complaint. The orders assign separate amounts to the company and to each director, with the company’s share making up the larger portion of the combined Rs 4.84 crore total.
The matter is distinct from the developer’s project portfolio. BPTP’s developments listed across the microsite include locations in Gurgaon, Faridabad and Noida, but none is identified in the compounding orders as connected to the foreign-investment contraventions. The regulatory action described here concerns transactions made by the company more than a decade before the complaint was filed.
Payment will determine the next step
The ED stated that the adjudication proceedings concerning the compounded contraventions would terminate if the prescribed payments were made within the stipulated period. The announcement did not set out a payment deadline or a date for any further action. The stated next step is therefore the completion of the payments under the RBI orders, after which the related proceedings would end in accordance with the ED’s statement.