New Delhi: Hyundai Motors, LG, Samsung Corp, Mitsubishi Corp, Sony and Nokia are among 18 multinational companies (MNCs) against whom adjudication proceedings have been initiated by the Enforcement Directorate (ED) under provision of the Foreign Exchange Regulation Act (FERA) of 1973, Rajya Sabha was informed on March 11.

Minister of State for Finance Gingee N Ramachandran replied in the affirmative to a question on whether the ED has issued notices to 18 MNCs for violating FERA by paying part of expat employee salaries abroad without seeking RBI (Reserve Bank of India) permission.

"Action under provision of FERA, 1973, has been taken by the Directorate of Enforcement and adjudication proceedings have been initiated accordingly," he said in a written reply.

The other MNCs in this list include Japan Airlines, Merubeni, Bank of Tokyo Mitsubishi, Motorola, Sanwa Bank, Bank of Nova Scotia, Deutsche Bank, Sakura Bank, All Nippon Airways, Ericsson, Daewoo Motors and Fuji Bank.

In reply to another question, he said the total dispute tax liability at the end of December 2002 was Rs 41,626.98 crore.

Finance Minister Jaswant Singh said the Naresh Chandra Committee has recommended technical scrutiny of annual account of companies on a random basis but "at present no guidelines are being contemplated for appointment of internal auditors".

PTI