Mr. Ronu an Indian national, failed to realize and repatriate foreign exchange amounting to ₹1 crore. Subsequently, Mr. Ronu realized that he has committed a contravention of the Foreign Exchange Management Act, 1999. He

Compounding refers to the process of voluntarily admitting the contravention, pleading guilty and seeking redressal. This problem is related to section 15 of the Foreign Exchange Management Act, 1999. Mr. Ronu has failed to realise and repatriate foreign exchange and contravened the provisions of section 8 of FEMA and he is liable to the penalties leviable under section 13 of the Foreign Exchange Management Act, 1999 followed by adjudication proceedings. Section 15 of the Foreign Exchange Management Act, 1999 permits the offending party to compound the contravention within 180 days from the date of receipt of application by the Directorate of Enforcement or such other offices of the Directorate of Enforcement and officers of RBI as may be authorised by Central Government is such manner as may be prescribed. No Contravention shall be compounded unless the amount involved in such contravention is quantifiable. Where a contravention has been compounded, no proceeding can continue or be initiated against the person in respect of the contravention so compounded. Therefore, Mr. Ronu can compound the said offence.