Regulatory Action
RBI orders BPTP and two directors to pay Rs 4.84 crore to compound FEMA violations from 2007-2008 foreign investments
The Reserve Bank of India has issued a compounding order under the Foreign Exchange Management Act (FEMA) requiring BPTP and two of its directors to pay a total of Rs 4.84 crore. The order, dated 17 September 2026, covers foreign investments the company received in 2007-2008.
| Order date | 17 September 2026 (RBI compounding order) |
|---|---|
| Total penalty | Rs 4.84 crore |
| Penalty on the company (BPTP) | Rs 4.03 crore |
| Penalty on each director | Rs 40.36 lakh (Kabul Chawla and Sudhanshu Tripathi) |
| Foreign investment involved | Rs 537.5 crore, from Mauritius entities CPI India I Ltd and Harbour Victoria Investment Holding Ltd |
| Period of the violations | 2007-2008 |
| Funds initially parked outside the project | Rs 320 crore put into fixed deposits and mutual funds instead of project investment |
What the RBI decided
On 17 September 2026 the Reserve Bank of India issued a compounding order against BPTP and two of its directors, Kabul Chawla and Sudhanshu Tripathi. Compounding is the process under FEMA by which a contravention is settled through a monetary payment rather than through prosecution. The order does not require any admission beyond the payment itself, and it closes the matter for the amounts set out in it.
The total payable is Rs 4.84 crore. Of this, Rs 4.03 crore is the penalty on the company. Each of the two directors is liable for Rs 40.36 lakh.
The violations
The contraventions relate to foreign direct investment (FDI) that BPTP received during 2007-2008. The investment came from two Mauritius-based entities, CPI India I Ltd and Harbour Victoria Investment Holding Ltd, and totalled Rs 537.5 crore.
According to the reports available, the RBI found two main problems:
- Put option and assured return clauses. The agreements with the foreign investors contained put option and assured return terms. These are not permitted under FEMA rules governing foreign investment in Indian companies.
- Diversion of funds. Rs 320 crore of the foreign money was initially placed in fixed deposits and mutual funds rather than invested in the project.
What it means for buyers, investors and the market
The order is a penalty on the company and its directors. The reports do not describe any effect on existing bookings, possession timelines, or the ownership of individual units. Home buyers do not need to take any action because of this order, as far as the reported facts go.
For investors and lenders, the case is a reminder that foreign investment in Indian real estate companies must follow FEMA conditions. Investment structures that include guaranteed returns or buyback rights for foreign investors can create regulatory exposure, even when the money is ultimately spent on projects.
What happens next
A compounding order closes the FEMA matter once the penalty is paid. The reports available do not mention any appeal, any separate proceeding, or any further step by the company or its directors. Any such development would need to be checked against fresh official sources.
Frequently asked questions
What is a FEMA compounding order?
It is a settlement under the Foreign Exchange Management Act in which the person or company pays a penalty to resolve a contravention, instead of facing prosecution for it. The RBI issued this order on 17 September 2026.
How much is BPTP required to pay?
BPTP is required to pay Rs 4.03 crore. The two directors, Kabul Chawla and Sudhanshu Tripathi, are each liable for Rs 40.36 lakh, making the total Rs 4.84 crore.
Which foreign investors are involved?
The reports name two Mauritius-based entities, CPI India I Ltd and Harbour Victoria Investment Holding Ltd. Together they account for Rs 537.5 crore of FDI received in 2007-2008.
What were the violations?
The RBI found that agreements with foreign investors included put option and assured return clauses, which breach FEMA rules. It also found that Rs 320 crore of the foreign funds was initially placed in fixed deposits and mutual funds rather than invested in the project.
Does this order affect people who have booked BPTP homes?
The reports do not describe any effect on bookings, possession or unit ownership. The order is a penalty on the company and two directors.
Has BPTP responded or said it will appeal?
The reports available do not include a company response or any mention of an appeal.