RBI Action on Apollo Hospitals Sparks Corporate Compliance Discussion

The Reserve Bank of India has issued a compound order against Apollo Hospitals Enterprises Ltd over FEMA violations related to foreign exchange management. The company, along with five directors, paid a total compounding fee of ₹18.67 crore after irregularities were identified in foreign fund transactions worth ₹2,422 crore. The Enforcement Directorate had recommended action following its investigation into multiple violations of FEMA norms.

The ED reportedly found violations including foreign investments in restricted sectors, issuance of foreign currency convertible bonds beyond permissible limits, and exceeding FII and FDI caps. Apollo Hospitals and its directors—including Sunita Reddy, S.K. Venkatraman, and others—were penalized separately, with the company paying ₹17.77 crore and directors collectively paying ₹90 lakh. The RBI action highlights strict regulatory compliance in foreign investment matters.