The Reserve Bank of India (RBI) has issued a compounding order against real estate developer BPTP Limited. The central bank directed the firm and two directors to pay Rs 4.84 crore for foreign exchange violations. Specifically, the Enforcement Directorate (ED) shared details of this regulatory action on Thursday.
Why the RBI Fines BPTP for Foreign Investment Issues
The case involves foreign direct investment (FDI) received by BPTP Limited in 2007 and 2008. The company previously operated under the name Business Park Town Planners Private Limited.
Consequently, the ED launched an investigation under the Foreign Exchange Management Act (FEMA), 1999. Investigators uncovered major irregularities regarding how the company handled foreign funds.
| Investor Name | Country | Investment Date | Amount Received |
| CPI India I Ltd | Mauritius | August 2007 | Rs 322.5 Crore |
| Harbour Victoria Investment Holding Ltd | Mauritius | July 2008 | Rs 215.0 Crore |
Key Regulatory Contraventions Identified by ED
Additionally, the ED highlighted two main regulatory breaches during its probe.
First, agreements contained clauses offering put options and assured returns to foreign investors. Consequently, these terms breached FEMA rules active at that time.
Second, BPTP parked roughly Rs 320 crore of FDI in fixed deposits and mutual funds. Therefore, the developer failed to use the money directly for real estate projects initially.
Settlement Breakdown and Penalty Distribution
Subsequently, the ED filed an official complaint with the Adjudicating Authority in December 2025. BPTP then approached the central bank to seek a settlement under Section 15(1) of FEMA. Therefore, the RBI issued compounding orders on September 17, 2026, after receiving an ED consent letter.
- BPTP Limited: Rs 4.03 Crore
- Director Kabul Chawla: Rs 40.36 Lakh
- Director Sudhanshu Tripathi: Rs 40.36 Lakh
- Total Penalty: Rs 4.84 Crore
Meanwhile, paying this compounding amount within the stipulated timeframe will officially terminate all ongoing adjudication proceedings. Compounding under FEMA allows companies to settle civil contraventions through monetary payment, thereby avoiding lengthy litigation.
