Alexandria Equities Management (India) Private Limited

In the RESERVE BANK OF INDIA Foreign Exchange Department Secretariat Road Saifabad, Hyderabad 500 004 Present Shri. Subrata Das Regional Director (Andhra Pradesh and Telangana) and Chief General Manager (Hyderabad) Date: April 23, 2019 C.A. HYD 395 In the matter of M/s Alexandria Equities Management (India) Pvt Ltd 303, Block- A, Legend Commercial Complex, 3-4-770 & 136, Opposite ICICI Bank, Above Keshav Medicals, Barkatpura, Hyderabad-500027 (Applicant) In exercise of the powers conferred under sub-section (1) of Section 15 of Foreign Exchange Management Act, 1999 and the Regulations/ Rules/ Notifications/ Orders made thereunder, I pass the following Order The applicant has filed the compounding application dated December 18, 2018 received on January 4, 2019 for compounding of contraventions of the provisions of the Foreign Exchange Management Act, 1999 (the FEMA) and the regulations issued thereunder. The contraventions sought to be compounded are (i) delay in reporting receipt of foreign inward remittances and (ii) delay in submission of Form FC-GPR to Reserve Bank of India after issue of shares towards subscription to equity (iii) delay in refund of share application money to the foreign investor beyond 180 days from the date receipt of foreign inward remittance in terms of Paragraph

Compounding of contraventions under FEMA 1999 M/s. Alexandria Equities Management (India) Private Limited CA No. HYD 395 9(1)(A), Paragraph 9(1)(B) and Paragraph 8 respectively of Schedule 1 to Foreign Exchange Management Regulations, 2000 notified vide Notification No. FEMA.20/2000-RB dated May 03, 2000 (hereinafter referred to as Notification No. FEMA 20/2000-RB) as then applicable. 2. The relevant facts of the case are as follows: a) The applicant is a resident company incorporated as Private Limited Company under the Companies Act, 1956 on 17.01.2008, with CIN: U70102TG2008PTC081105. The company is engaged in management consultancy activities. b) The applicant had received foreign inward remittances from the foreign investors as indicated below: Name of remitter Date of S.No Amount (INR) Date of reporting Receipt ARE Mauritius No. 1 Ltd 1 43,153 02/09/2008 20/11/2009 ARE Mauritius No. 1 Ltd 2 22,07,712 08/09/2008 20/11/2009 ARE Mauritius No. 1 Ltd 3 1,34,51,679.18 22/10/2008 20/11/2009 ARE Mauritius No. 1 Ltd 4 9,23,276.41 22/12/2008 20/11/2009 ARE Mauritius No. 1 Ltd 20/01/2009 5 63,33,223.74 20/11/2009 ARE Mauritius No. 1 Ltd 31/03/2009 6 10,43,448 20/11/2009 ARE Mauritius No. 1 Ltd 21/04/2009 7 88,02,506.95 30/06/2009 ARE Mauritius No. 1 Ltd 09/07/2009 8 97,22,000 11/12/2009 ARE Mauritius No. 1 Ltd 29/09/2009 9 1,19,27,500 28/10/2009 ARE Mauritius No. 1 Ltd 24/11/2009 10 92,04,000 11/12/2009

Compounding of contraventions under FEMA 1999 M/s. Alexandria Equities Management (India) Private Limited CA No. HYD 395 ARE Mauritius No. 1 Ltd 14/12/2009 11 1,16,42,500 29/12/2009 ARE Mauritius No. 1 Ltd 24/12/2009 12 69,93,000 25/01/2010 ARE Mauritius No. 1 Ltd 10/02/2010 13 92,06,000 25/02/2010 ARE Mauritius No. 1 Ltd 31/03/2010 14 1,20,15,000 12/04/2010 ARE Mauritius No. 1 Ltd 19/04/2010 15 1,76,20,000 11/05/2010 ARE Mauritius No. 1 Ltd 23/06/2010 16 1,14,69,541.20 08/07/2010 ARE Mauritius No. 1 Ltd 28/07/2016 17 5,90,49,377 26/08/2016 19,16,53,917.5 The applicant reported receipt of remittances towa rds share subscription amounting to ₹ 19,16,53,917.50 to the Regional Office of Reserve Bank of India out of which remittances amounting to ₹ 4,95,19,999.28/- were reported with delays ranging from 2 days to 1 year 1 month 18 days approximately as indicated above. Whereas in terms of Paragraph 9(1)(A) of Schedule 1 to Notification No. FEMA 20/2000-RB, an Indian company issuing shares or convertible debentures in accordance with these Regulations should report to the Reserve Bank of India as per the prescribed procedure not later than 30 days from the date of receipt of the amount of consideration. c) The company allotted equity shares and filed form FC-GPRs as indicated below: Name of Date of No. of Amount for Date of S.No investor allotment of Shares which shares reporting to shares allotted allotted (INR) RBI ARE Mauritius 1 16/02/2009 229590 22959000 19/11/2009 No. 1 Ltd ARE Mauritius 19/11/2009 2 20/07/2009 98459 9845900 No. 1 Ltd

Compounding of contraventions under FEMA 1999 M/s. Alexandria Equities Management (India) Private Limited CA No. HYD 395 ARE Mauritius 19/01/2010 3 21/12/2009 308535 30853500 No. 1 Ltd ARE Mauritius 08/07/2010 4 11/06/2010 278415 27841500 No. 1 Ltd ARE Mauritius 5 73811 59049377 25/10/2016 No. 1 Ltd 26/09/2016 Total 9,88,810 15,05,49,277 The applicant filed form FCGPRs for the of shares amounting to ₹ 15,05,49,277/-as indicated above out of which shares allotted for ₹ 3,28,04,900/- were reported with delays ranging from 3 months to 8 months 1 day approximately. Whereas in terms of Paragraph 9(1) (B) of Schedule 1 to Notification no. FEMA 20/2000-RB, an Indian company issuing shares in accordance with these Regulations has to submit to Reserve Bank a report in form FCGPR along with documents prescribed therein within 30 days from the date of issue of shares to person resident outside India. d) The company has refunded the share application money to the foreign investor as indicated below: Name of Date of Amount of Date of request for investor receipt of remittance refund S.No remittance received and balance if any

ARE 19/04/2010 1 Mauritius 17620000 26/10/2010 No. 1 Ltd The applicant requested for approval to refund the amount received ₹ 1,76,20,000/-with delay of 10 days approximately and refunded the same on 21.12.2010. Whereas in terms of Paragraph 8 of Schedule 1 to Notification No. FEMA 20/2000- RB read with A.P (DIR Series) Circular No. 20 dated December 14, 2007, if the shares are not issued within 180 days from the date of receipt of the inward

Compounding of contraventions under FEMA 1999 M/s. Alexandria Equities Management (India) Private Limited CA No. HYD 395 remittance, the amount of consideration so received shall be refunded to the person concerned, provided the Reserve Bank may on an application made to it and for sufficient reasons permit to refund the amount of consideration received towards issue of security, if such amount is outstanding beyond a period of 180 days from the date of receipt. The amendment in Paragraph 8 of Schedule 1 to Notification No. FEMA 20/20000-RB was introduced by issue of Foreign Exchange Management (Transfer or Issue of Security by a Person outside India) (Third Amendment Regulation, 2007 notified, vide Notification No. FEMA 170/2007-RB dated 13th November, 2007 in the official Gazette of the Govt. of India. 3. (a) The applicant was given an opportunity for personal hearing vide Reserve Bank’s letter No. HY.FE.FID/2202/14.66.003/2018-19 dated April 15, 2019 for further submission in person and/or producing documents, if any, in support of the application. (b) The liquidator of the company, Shri Raghu Babu Gunturu and Shri K. Mohan Kumar the authorized representative appeared for personal hearing on April 18, 2019 during which he admitted the contraventions for which the compounding has been sought. During the personal hearing it was submitted that the delay was not wilful or with a mala fide intention but was on account of administrative lapses. In view of the above, the applicant requested to take a lenient view in disposal of the application. The application for compounding is, therefore, being considered on the basis of the averments made in the application as well the submissions made in this context by the applicant during the personal hearing. 4. I have given my careful consideration to the documents on record. Accordingly, I hold that the applicant has contravened the following FEMA provisions issued in terms of:- (a) Paragraph 9(1)(A) of Schedule 1 to Notification No. FEMA 20/2000-RB for delay in reporting the receipt of consideration towards issue of shares amounting to ₹ 4,95,19,999.28 and the delay ranges from 2 days to 1 year 1 month 18 days approximately.

Compounding of contraventions under FEMA 1999 M/s. Alexandria Equities Management (India) Private Limited CA No. HYD 395 (b) Paragraph 9(1)(B) of Schedule 1 to Notification No. 20/2000-RB for delay in submission of Form FC-GPR to Reserve Bank of India after issue of shares to persons resident outside India and the contravention relates to an amount of ₹3,28,04,900/- and the period of contravention ranges from 3 months to 8 months 1 day approximately. (c) Paragraph 8 of Schedule 1 to Notification No. FEMA 20/2000-RB for delay in refund of share application money ₹1,76,20,000/- and the delay is 10 days approximately. 5. It has been declared in the compounding application dated December 18, 2018 that the particulars given by the applicant in the application are true and correct to the best of their knowledge and belief. It has been declared in the declaration dated December 18, 2018 furnished with the compounding application that the applicant was not under any enquiry/investigation/adjudication by any agency as on the date of the application and has, in this regard, not informed of initiation of any such enquiry/investigation/ adjudication proceedings against it thereafter. It has further been declared that the applicant has not filed any appeal under section 17 or section 19 of FEMA, 1999.Accordingly, the above contraventions which are being compounded in this Order are subject to the veracity of the above declarations made by the applicant and this order is without prejudice to any other action which may be taken by any authority under the extant laws if the said declarations are subsequently discovered to be false and/or incorrect. 6. In terms of Section 13 of the FEMA, any person contravening any provision of the Act shall be liable to a penalty up to thrice the sum involved in such contravention upon adjudication. However, taking into account the relevant facts and circumstances of the case as stated in the foregoing paragraphs, I am persuaded to take a lenient view on the amount for which the contravention is to be compounded and I consider that an amount of ₹ 2,08,985/- (Rupees Two Lakhs Eight Thousand Nine Hundred Eighty Five Only) will meet the ends of justice.

Compounding of contraventions under FEMA 1999 M/s. Alexandria Equities Management (India) Private Limited CA No. HYD 395 7. Accordingly, I compound the admitted contraventions, namely, the contraventions of Paragraph 9(1)(A), Paragraph 9(1)(B) and Paragraph 8 respectively of Schedule 1 to FEMA.20/2000-RB by the applicant on the facts discussed above in terms of the Foreign Exchange (Compounding Proceedings) Rules, 2000 on payment of an amount of ₹ 2,08,985/- (Rupees Two Lakhs Eight Thousand Nine Hundred Eighty Five Only) which shall be deposited by the applicant with the Reserve Bank of India, Foreign Exchange Department, 1st Floor, Saifabad, Hyderabad - 500004 by a demand draft drawn in favour of the "Reserve Bank of India" and payable at Hyderabad within a period of 15 days from the date of this order. In case of failure to deposit the compounded amount within the above mentioned period, Rule 10 of the Foreign Exchange (Compounding Proceedings) Rules, 2000 dated May 3, 2000 shall apply.

The application is disposed of accordingly. Dated this 23rd day of April 2019

Sd/- (Subrata Das) Regional Director (Andhra Pradesh and Telangana) and Chief General Manager (Hyderabad)