Amrutha Power Projects Private Limited

In the RESERVE BANK OF INDIA Foreign Exchange Department Secretariat Road Saifabad, Hyderabad 500 004 Present R Subramanian Regional Director Date: April 10, 2018 C.A. HYD 280 In the matter of M/s. Amrutha Power Projects Private Limited Flat no. 405, Tulips Apts 6-3-655, Somajiguda Hyderabad – 500 082 (Applicant) In exercise of the powers conferred under Section 15 (1) of Foreign Exchange Management Act, 1999 and the Regulations/ Rules/ Notifications/ Orders made there under, I pass the following Order The applicant has filed the compounding application dated January 25, 2018 received on January 29, 2018 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 in terms of Paragraph 9(1)(A) and Paragraph 9(1)(B) respectively of Schedule 1 to Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 notified vide Notification No.

Compounding of contraventions under FEMA 1999 M/s Amrutha Power Projects Private Limited CA No. HYD 280 FEMA.20/2000-RB dated 3rd May 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 24.06.2010 (CIN: U40108TG2010PTC069130). The company is engaged in the business of electric power generation, transmission and distribution. b) The applicant had received foreign inward remittances from three foreign investors towards advance for subscription to equity shares as indicated below.

Sl Name of Remitter Total Amount Date of Date of No (INR) Receipt Reporting 1 Katvondin Inc. 162496616 01.07.2010 04.05.2016 2 Transartica 49784642 25.02.2011 21.03.2011 Company Ltd. 3 Fiora Enterprises 8956656 23.06.2011 08.02.2016 4 Fiora Enterprises 31666643 11.08.2011 04.05.2016 5 Fiora Enterprises 14711440 04.11.2011 04.05.2016 6 Fiora Enterprises 80314000 27.11.2014 10.12.2014 7 Fiora Enterprises 61510000 11.11.2014 10.12.2014 Total 40,94,39,997

The applicant received the foreign inward remittances amounting to Rs.40,94,39,997/- as indicated above out of which remittances amounting to Rs. 21,78,31,355/- were reported to Reserve Bank of India with delays ranging from 4 years 5 months to 5 years 9 months 3 days approximately beyond the prescribed period of 30 days. Whereas in terms of Paragraph 9(1)(A) of Compounding of contraventions under FEMA 1999 M/s Amrutha Power Projects Private Limited CA No. HYD 280 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 shares and filed form FC-GPRs as indicated below:

Sl Name of investor Date of Number of Amount for Date of No allotment shares/CCPS which shares reporting of shares allotted allotted (INR) 1 Katvondin Inc. 28.12.2010 1624960 162496000 29.01.2011 2 Transartica 24.08.2011 4978440 49784400 23.09.2011 Company Ltd. 3 Fiora Enterprises 20.12.2011 895510 8955100 28.02.2015

4 Fiora Enterprises 05.02.2012 3166280 31662800 28.02.2015

5 Fiora Enterprises 30.04.2012 1471140 14711400 28.02.2015

6 Fiora Enterprises 30.12.2014 8031400 80314000 30.01.2015 7 Fiora Enterprises 30.12.2014 6151000 61510000 30.01.2015 Total 26318730 40,94,33,700

The applicant filed form FCGPRs for issue of shares amounting to Rs. 40,94,33,700/- as indicated above out of which shares amounting to Rs. 35,96,49,300/- were reported with delays ranging from 1 day to 3 years 1 month 9 days approximately beyond the stipulated period of 30 days. 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 of India a report in form

Compounding of contraventions under FEMA 1999 M/s Amrutha Power Projects Private Limited CA No. HYD 280 FCGPR along with documents prescribed therein within 30 days from the date of issue of shares to person resident outside India.

3. (a) The applicant was given an opportunity for personal hearing vide Reserve Bank’s letter No. HY.FE.FID/1692/14.66.003/2017-18 dated April 02, 2018 for further submission in person and/or producing documents, if any, in support of the application. (b) The applicant appeared for personal hearing on April 04, 2018 during which Shri. Shiva Rami Reddy, Chartered Accountant and Shri. Anil Dubba, Company Secretary represented the applicant. The authorized representatives of the applicant 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 malafide intention but was on account of miscommunication between the banks and lack of proper guidance on compliance requirements. In view of the foregoing, the representative of 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 Rs. 21,78,31,355/- and the delay ranges from 4 years 5 months to 5 years 9 months 3 days approximately. (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 Rs.

Compounding of contraventions under FEMA 1999 M/s Amrutha Power Projects Private Limited CA No. HYD 280 35,96,49,300/- and the delay ranges from 1 day to 3 years 1 month 9 days approximately.

5. It has been declared in the compounding application dated January 25, 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 January 25, 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. 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 Rs. 14, 15, 250/- (Rupees Fourteen Lakh Fifteen Thousand Two Hundred Fifty Only) will meet the ends of justice.

7. Accordingly, I compound the admitted contraventions, namely, the contraventions of Paragraph 9(1)(A) and Paragraph 9(1)(B) of Schedule 1 to Notification No. 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 Rs.14,15,250/- (Rupees Fourteen Lakh Fifteen Thousand Two Hundred Fifty Only) which shall be deposited by the applicant with the Reserve Bank of India,

Compounding of contraventions under FEMA 1999 M/s Amrutha Power Projects Private Limited CA No. HYD 280 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, Rule10 of the Foreign Exchange (Compounding Proceedings) Rules, 2000 dated May 3, 2000 shall apply.

The application is disposed accordingly.

Dated this 10th day of April 2018

Sd/- (R Subramanian) Regional Director