ED files FEMA complaint against SIMPL over Rs 913 crore FDI violation
The enquiries in the matter were initiated on the basis of credible information that SIMPL has received a substantial amount of Foreign Direct Investment (FDI) from the US, allegedly in violation of the extant FDI policy, the ED statement said.
The ED investigation under the provisions of the FEMA revealed that the firm runs its business through mobile application named SIMPL. It provides Buy Now Pay Later services which allowed its customer to buy now and pay later in instalments, the ED said.
Further, it was learnt that One Sigma Technologies Pvt Ltd received FDI to the tune of Rs 648,87,76,480 and issued Convertible Notes to the tune of Rs 264,88,11,582 under the 100 per cent automatic route by declaring its business activity as "Benefits of Information Technology and other computer service activities", the ED said.
"During the course of investigation under FEMA, 1999, the business model and revenue generation model of M/s One Sigma Technologies Pvt Ltd were examined, and the same revealed that M/s One Sigma Technologies Pvt Ltd is into the business activities which fall under financial activities."
"However, as per circular, dated October 20, 2016, issued by the RBI, FDI in financial activities not regulated by any authority is to be brought under the 100 per cent approval route. Further, in activity where government approval is necessary for receiving FDI, any startup company can issue convertible notes only with the approval of the government of India. However, M/s One Sigma Technologies Pvt Ltd has issued convertible notes without obtaining any approval from the government of India," the ED said.
"M/s One Sigma Technologies Pvt Ltd (SIMPL) has received FDI under automatic route and issued convertible notes under automatic route without obtaining prior approval from the government of India and thereby contravened the provisions of FEMA, 1999, collectively to the tune of Rs 913,75,88,062 and rendered itself liable to be proceeded under section 13 of FEMA, 1999."
"In view of the above, a complaint under section 16 (3) of FEMA, 1999 is filed before the Adjudicating Authority under FEMA," the ED added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
24 minutes ago
- India.com
Vietnam's VinFast Enters India with First EV Showroom In Gujarat, Plans 35 Outlets By Year-End
New Delhi: Vietnamese electric vehicle maker VinFast on Sunday opened its first showroom in India at Gujarat's Surat as the company looks to tap the growing market for electric cars in the country. The showroom will showcase the company's electric SUV variants VF 6 and VF 7, which will be launched as right-hand drive variants for the first time. "The vehicles will be locally assembled at VinFast's upcoming factory at Thoothukudi in Tamil Nadu, reinforcing the company's long-term commitment to India as a strategic market and future hub for electric vehicle production," a VinFast statement said. VinFast plans to open 35 dealerships across over 27 cities in the country by the year-end. Vehicles will be assembled at its upcoming manufacturing facility in Thoothukudi, Tamil Nadu. Vietnamese EV giant VinFast opens First Indian Showroom in Surat,Gujrat. Aims 35 Showrooms across India By 2025 end. — Indian Infra Report (@Indianinfoguide) July 27, 2025 Located in Surat's Piplod area, the showroom will showcase the brand's upcoming premium electric SUVs – the VF 6 and VF 7 – for which pre-bookings opened on July 15. Customers can reserve their vehicle at showroom their vehicle at showrooms or online through with a fully refundable deposit of Rs 21,000, the statement said. VinFast Asia CEO Pham Sanh Chau said: "The first VinFast Showroom in Surat is a symbol of our deep commitment to India. We are excited to bring the VinFast experience closer to Indian consumers. With this dealership in Gujarat, we aim to offer not just electric vehicles, but a complete ownership journey built on quality trust and service excellence.' The Vietnamese EV maker has formed partnerships with RoadGrid, myTVS, and Global Assure to provide charging and after-sales services across India. The company has also joined hands with BatX Energies to promote battery recycling and establish a circular battery value chain, reinforcing its commitment to sustainable innovation. Earlier this month, the Elon Musk-run Tesla launched its Model Y in India, at prices starting at Rs 59.89 lakh, with its first showroom in Mumbai. Tesla will be importing the Model Y as a completely built unit (CBU) from its manufacturing facility in Shanghai in China.
Hans India
24 minutes ago
- Hans India
Chhattisgarh: 4 Maoists killed in Bijapur encounter; security forces recover arms and ammunition
In a significant counter-insurgency operation success, four reward-carrying Maoists were killed during a prolonged encounter with security forces in the dense forest region of Bijapur district in Chhattisgarh, the police said on Sunday. The operation, launched by the District Reserve Guard (DRG) on July 26, was based on specific intelligence inputs regarding Maoist activity near the Basaguda and Gangaloor police station limits in the district's south-western corridor. The gunfight began in the evening and continued intermittently through the night. Among the deceased were two women cadres, all affiliated with the South Sub Zonal Bureau of the banned CPI (Maoist), said the official. The slain insurgents were identified as Hunga (ACM, Platoon 10), Lakkhe (ACM, Platoon 30), Bhime (ACM), and Nihal alias Rahul, a party member and bodyguard to the Bureau Communication Head. Collectively, they carried a bounty of Rs 17 lakh. Security personnel recovered a substantial cache of arms and ammunition from the site, including one SLR rifle, one INSAS rifle, one .303 rifle, a 12 bore gun, a BGL launcher, a single-shot 315 bore rifle, and an AK-47. In addition, multiple magazines, live rounds, grenades, BGL cells, Maoist literature, and daily-use items were seized. Inspector General of Police (Bastar Range) Sundarraj P. confirmed that the operation was part of an intensified anti-LWE campaign in the region. He noted that 425 hardcore Maoists have been neutralised between January 2024 and July 2025, attributing the success to strategic planning, operational courage, and community support. Despite challenging monsoon conditions -- marked by rugged terrain, dense foliage, and persistent rainfall -- security forces maintained high morale and operational readiness. The encounter underscores the state's continued efforts to dismantle Maoist strongholds and restore civil order in insurgency-hit zones. The operation remains on-going, with forces maintaining heightened alert across the Bastar division, which has historically been a hotbed of left-wing extremism.
Indian Express
24 minutes ago
- Indian Express
Mamata to meet Durga Puja organisers on July 31, launch ‘bhasha andolan' march tomorrow
Ahead of Durga Puja, puja committees in West Bengal are expecting Chief Minister Mamata Banerjee to increase the financial grant for them, with a crucial meeting of festival organisers with the chief minister scheduled for July 31 at Kolkata's Netaji Indoor Stadium to finalise the plans. The meeting holds immense significance for thousands of big and small Durga Puja committees in Kolkata and other districts. Last year, the Government raised its grant from Rs 75,000 to Rs 85,000 per puja committee. Many feel the chief minister will increase the grant further to Rs 1 lakh in an announcement at the July 31 meeting. The chief minister will preside over the meeting, which is expected to see representatives from approximately 5,000 puja committees, high-ranking police officers, Kolkata's mayor, and officials from the fire department, the Calcutta Electric Supply Corporation, and other agencies. Puja committee officials are eagerly awaiting the day, as the chief minister traditionally announces not only financial aid but also various exemptions for the festival. Checks of the government grant are typically disbursed to committees via local police stations. Political analysts are keenly observing this year's meeting, given its timing ahead of the Assembly elections next year. The Trinamool Congress has seen positive electoral outcomes linked to the puja grants. With the Lok Sabha elections having concluded last year, during which the grant was increased, the potential increase in the grant to 1 lakh just before the Assembly elections is seen by political circles as a strategic move that could positively influence the ballot. Furthermore, the chief minister is said to be leveraging this platform to promote communal harmony. Beyond the financial aspects, the meeting will also provide essential guidelines for various festival preparations, including maintaining cleanliness and ensuring drinking water supply during the puja days. While some puja committees had previously returned the grant in protest over issues like the rape and murder of a trainee doctor at RG Kar Medical College and Hospital, the vast majority have consistently accepted the government's financial assistance. CM Mamata embarks on district tours, starting with Birbhum Chief Minister Mamata Banerjee started a district tour on Sunday, starting with Birbhum. Trinamool Congress sources said the chief minister would arrive in Birbhum on Sunday afternoon. Her itinerary includes an overnight stay at Rangabitan. On July 28, she will hold an administrative meeting at Gitanjali Theatre to review the district's development projects. She is also scheduled to lead a large march to protest against the targeting of Bengali speakers in other states–a 'bhasha andolan' (language agitation) march that she announced on July 21. The march will start from the Tourist Lodge intersection and conclude at the Jambuni bus stand, followed by a speech by the chief minister. On July 29, the chief minister will hold an administrative meeting in Illambazar. She is also expected to inaugurate a bridge built over the Ajay river to improve connectivity between Birbhum and West Burdwan. Additionally, appointment letters for Group D and junior constable posts will be distributed among landowners in the proposed Deuchapachamy coal industry area, and farmers will receive farming equipment. Ahead of the chief minister's visit, district Trinamool Congress chairperson Ashish Banerjee called an emergency core committee meeting at the party's Bolpur office on Thursday.
