ED Files ₹9.14 Billion FEMA Complaint Against One Sigma Technologies Over Alleged FDI Breach

India’s Directorate of Enforcement has filed a formal complaint under the Foreign Exchange Management Act (FEMA) against One Sigma Technologies Pvt Ltd, citing contraventions amounting to ₹9.14 billion. The action follows an extensive investigation into the company’s foreign investment structure and trading practices.

 

Key Allegations And Structuring Concerns

 

- One Sigma Technologies allegedly received foreign direct investment while declaring itself a wholesale cash-and-carry business.

- Investigators found that the company routed nearly all its sales through a related entity, which then retailed goods to end consumers.

- This structure is suspected to have violated FEMA norms and India’s FDI policy, which restricts multi-brand retail trading under wholesale licenses.

 

Legal Basis And Policy Breach

 

- The ED cited violations under Section 6(3)(b) of FEMA and the Consolidated FDI Policies dated April 1 and October 1, 2010.

- Wholesale entities are permitted to sell only up to 25 percent of goods to group companies; One Sigma allegedly exceeded this threshold significantly.

 

Next Steps And Industry Implications

 

- The complaint has been submitted to the Adjudicating Authority under FEMA for further proceedings.

- The case highlights growing scrutiny of foreign-funded tech and retail firms using layered corporate structures to navigate regulatory boundaries.

 

Sources: Economic Times, CNBC TV18, MSN India, India TV News, Business Standard.