Baypark Hotel and Resorts 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: October 25, 2018 C.A. HYD 330 In the matter of M/s. Baypark Hotel & Resorts Pvt Ltd Rushikonda, Gitam Post Visakhapatnam – 530 045 (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 revised compounding application dated September 5, 2018 received by us on September 5, 2018 for compounding of contraventions of the provisions of the Foreign Exchange Management Act, 1999 (FEMA) and the regulations issued there under. The contraventions sought to be compounded are (i) delay in reporting of receipt of foreign inward remittances towards subscription of equity and (ii) delay in submission of Form FCGPR to the Reserve Bank of India after issue of shares to a person resident outside India in terms of Paragraph 9(1)(A) and Paragraph 9(1)(B) of Schedule 1 to Foreign Exchange Management (Transfer

Compounding of contraventions under FEMA 1999 M/s Baypark Hotel & Resorts Pvt Ltd CA No. HYD 330 or Issue of Security by a person resident outside India) Regulations, 2000 notified vide Notification No. FEMA. 20/2000-RB dated 3rd May 2000 as then applicable (herein after referred to as Notification no. FEMA 20/2000-RB). 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 July 9, 1998 (CIN: U55100AP1998PTC029729). The company is engaged in the business of providing short term accommodation activities which includes Hotels and Motels, inns, resorts providing short term lodging facilities etc. b) The applicant had received foreign inward remittances from single foreign investor as indicated below. Sl Name of Remitter Total Date of Date of No Amount Receipt Reporting (INR) 1 Asian Developers Pte Ltd 24778751 14.07.2008 04.12.2008 2 Asian Developers Pte Ltd 3462707 11.11.2009 02.12.2009 3 Asian Developers Pte Ltd 4648768 16.12.2009 29.12.2009 4 Asian Developers Pte Ltd 144014875 30.03.2010 12.04.2010 5 Asian Developers Pte Ltd 11606018 13.08.2010 23.08.2010 6 Asian Developers Pte Ltd 15939378 05.10.2010 12.10.2010 7 Asian Developers Pte Ltd 10350741 28.11.2011 08.12.2011 8 Asian Developers Pte Ltd 70907725 15.05.2013 04.06.2013 9 Asian Developers Pte Ltd 27415336 07.03.2014 16.05.2014 10 Asian Developers Pte Ltd 27422086 07.03.2014 16.05.2014 11 Asian Developers Pte Ltd 270134100 27.06.2014 07.08.2014 12 Asian Developers Pte Ltd 32696134 17.03.2017 23.05.2017 Total 64,33,76,619

Compounding of contraventions under FEMA 1999 M/s Baypark Hotel & Resorts Pvt Ltd CA No. HYD 330 The applicant reported receipt of remittances towards share subscription amounting to ₹ 64,33,76,619/- to the Regional Office of Reserve Bank of India, out of which remittance amounting to ₹ 38,24,46,407/- were reported with a delay ranging from 11 days to 3 months 21 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

Sl Name of Date of Number of Amount for Date of No investor allotment shares/CCDs which shares reporting of shares allotted allotted (INR) 1 Asian Developers 13.12.2008 2477852 24778520 17.01.2009 Pte Ltd 2 Asian Developers 29.03.2010 811147 8111470 28.04.2010 Pte Ltd 3 Asian Developers 11.08.2010 2001488 20014880 07.09.2010 Pte Ltd 4 Asian Developers 29.01.2011 2754539 27545390 23.02.2011 Pte Ltd 5 Asian Developers 12.03.2012 1035074 10350740 10.04.2012 Pte Ltd 6 Asian Developers 04.11.2013 7090772 70907720 02.12.2013 Pte Ltd

Compounding of contraventions under FEMA 1999 M/s Baypark Hotel & Resorts Pvt Ltd CA No. HYD 330 7 Asian Developers 30.05.2014 5483742 54837420 30.06.2014 Pte Ltd 8 Asian Developers 30.06.2014 27013410 270134100 04.10.2014 Pte Ltd 9 Asian Developers 10.05.2017 3269613 32696130 19.12.2017 Pte Ltd Total 5,19,37,637 51,93,76,370 The applicant filed form FCGPRs for the allotment of shares amounting to ₹ 51,93,76,370/- as indicated above, out of which shares amounting to ₹ 38,24,46,170/- were reported with a delay ranging from 1 day to 6 months 10 days approximately beyond the prescribed limit. 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 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/ 703 /14.66.003/2018-19 dated October 11, 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 October 15, 2018 during which Shri. V. Rama Rao, Senior Assistant (Accounts) represented the applicant. The authorized representative 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 administrative reasons. 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.

Compounding of contraventions under FEMA 1999 M/s Baypark Hotel & Resorts Pvt Ltd CA No. HYD 330 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 ₹ 38,24,46,407/- and the delay ranges from 11 days to 3 months 21 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 ₹ 38,24,46,170/- and the delay ranges from 1 day to 6 months 10 days approximately. 5. It has been declared in the compounding application dated September 5, 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 September 5, 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 Compounding of contraventions under FEMA 1999 M/s Baypark Hotel & Resorts Pvt Ltd CA No. HYD 330 take a lenient view on the amount for which the contravention is to be compounded and I consider that an amount of ₹ 1,32,000/- (Rupees One Lakh Thirty Two Thousand 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 ₹ 1,32,000/- (Rupees One Lakh Thirty Two Thousand 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, Rule10 of the Foreign Exchange (Compounding Proceedings) Rules, 2000 dated May 3, 2000 shall apply.

The application is disposed accordingly.

Dated this 25th day of October 2018

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