Karnataka HC Upholds ED Action in ₹7,800-Crore FEMA Genpact Case
What Happened
The Karnataka High Court upheld the Enforcement Directorate (ED)'s seizure of Genpact India's Gurugram office in an alleged ₹7,800-crore FEMA violation and round-tripping case involving overseas group entities. The court said the ED had sufficient grounds to investigate the transactions. However, the court set aside the ED's rejection of Genpact's application for a No Objection Certificate (NOC) linked to a proposed $100-million investment in GIFT City, directing authorities to reconsider the request.
Key Takeaways
While the court allowed the ED investigation and property seizure to continue, it provided limited relief to Genpact by reopening the door for its planned GIFT City investment.