The Reserve Bank of India (RBI) has imposed penalties on 4 government companies for delayed disclosure of overseas investments. These companies include ONGC Videsh Limited (OVL), Indian Oil Corporation Limited, GAIL (India) Limited, and Oil India Limited. Each of these companies will have to pay a Late Submission Fee (LSF) of INR 2,000 crores, meaning each company has been fined INR 500 crores.
According to the report, these companies are now attempting to obtain an extension from the central bank. This step taken by RBI could have an impact on the overseas work commitments of these government companies. It is suggested that the central bank may show leniency to avoid disrupting their operations.
The Oil Ministry allegedly believes that the responsibility for reporting overseas investments lies with the Authorized Dealer Bank, which is State Bank of India (SBI) for these 4 government companies. As per RBI’s Foreign Exchange Management (Overseas Investment) Regulations 2022, individuals who fail to submit investment evidence within the specified time limit can do so by paying the late submission fee.
As per an RBI notification, “Any person resident in India who fails to submit proof of investment within the time specified under sub-regulation (1) of regulation 9 or who fails to file the required filing under sub-regulation (1) of regulation 10, may file or submit the same within the time specified, subject to the late submission fee.” However, as per the central bank, this facility can be availed for a maximum period of three years beyond the intended date of submission or filing.
