UNETHICAL PRACTICES

BY ITC –
FERA VIOLATION
CASE STUDY
SUNAINA PANIGRAHI (23DM058)
AMAN MAHATO (23DM071)
DEBASHIS BEHERA (23DM070)
SREEMAD PRASAD PRADHAN (23DM085)
ADITI KUMARI (23DM046)
SUBHA ARCHITA BISWAL (23DM078)
Content
1.Company Background
2.Objective
3.Introduction To The Case Study
4.Allegations of FERA Violation by ITC
5.ITC's Response and Defenses
6.Regulatory and Legal Implications
7.Ethics And Value Impact
8.Conclusion
Company Background

• ITC Founded in 1910 as the Imperial Tobacco Company

of India Limited.
• Headquartered in Kolkata, India. Diversified
conglomerate with interests in FMCG, hospitality,
paperboards & packaging, agri-business, and information
technology.
• Renamed as ITC Limited in 1974. One of India's largest
FMCG companies.
OBJECTIVE
1 Understand the Foreign Exchange 2
Regulation Act (FERA) and its key
provisions
Gain a comprehensive understanding of
the FERA legislation, its purpose, and the
regulations it imposes on companies
conducting foreign exchange transactions.
3 Assess ITC's response and
defenses
Evaluate ITC's stance, explanations, and
legal defenses in relation to the FERA
violation allegations.
Examine the allegations of
FERA violation against ITC
Analyze the specific allegations and
charges brought against ITC regarding
alleged violations of the FERA
regulations.
4 Explore the regulatory and
legal implications
Understand the potential consequences
and impact of the FERA violation
allegations on ITC's operations,
reputation, and legal standing.
Introduction to FERA Violation
by ITC
The case of FERA (Foreign Exchange Regulation Act)
violation by the Indian conglomerate ITC Limited is a
complex and high-profile issue that has garnered
significant attention. This slide provides an overview of the
allegations, investigations, and implications surrounding
ITC's alleged breach of FERA regulations.
Allegations of FERA Violation
by ITC
ITC, one of India's largest conglomerates, was accused of violating the
Foreign Exchange Regulation Act (FERA) through various financial
transactions and practices. The allegations claimed that ITC had
illegally transferred funds abroad, circumvented currency controls, and
engaged in other activities that contravened FERA regulations.

The Indian government launched a thorough investigation into ITC's

financial activities, scrutinizing the company's books, bank records,
and international transactions to uncover any potential violations of the
foreign exchange laws.
ITC's Response and Defenses
ITC mounted a robust defense against the
FERA violation allegations, arguing that the
transactions were legitimate and did not
violate any regulations. The company
claimed it had obtained the necessary
approvals from the relevant authorities and
maintained that the charges were
unfounded.

ITC's legal team highlighted the complex

and ambiguous nature of the FERA
regulations, arguing that the company had
acted in good faith and within the bounds of
the law. They also emphasized the
significant economic contributions ITC had
made to the country over the years.
 Regulatory and Legal Implications
Regulatory Legal Reputational Compliance
Scrutiny Proceedings Damage Overhaul
The alleged FERA ITC may face legal The allegations of To mitigate the
violation by ITC has proceedings and FERA violation have regulatory and legal
drawn significant potential the potential to inflict risks, ITC may need
regulatory scrutiny prosecution for the reputational damage to undertake a
from government alleged FERA on ITC, undermining comprehensive
authorities. The case violation. The public trust and review and overhaul
has raised concerns company could be investor confidence. of its compliance
about compliance subject to fines, The company's brand procedures and
with foreign sanctions, or even image and market internal controls
exchange criminal charges standing could suffer related to foreign
regulations and depending on the as a result of this exchange
potential financial severity of the controversy. management and
penalties. infractions and the financial reporting.
outcome of the
investigations.
Ethics And Value Impact
The allegation of FERA violation against ITC, a company renowned for its strong ethical
standards and commitment to sustainability, is not in line with its core values and vision. ITC's
mission emphasizes responsible business practices and creating value for all stakeholders. This
accusation, if true, would undermine the company's integrity and tarnish its reputation as a
trustworthy corporate citizen.
CONCLUSION
In conclusion, the allegations of FERA violation against ITC raise
serious ethical concerns. The company's actions appear to contradict its
stated vision, mission, and values, which emphasize principles of good
corporate governance and responsible business practices.
THANK YOU.