Felgura Gruas 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: October 10, 2019 C.A. HYD 433 In the matter of M/s. Felguera Gruas India Private Limited Door No-10-50-24/A, 3rd & 4th Floor Opposite HSBC Call Center, Siripuram Junction Vishakhapatnam – 530 003 (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 submitted the compounding application dated May 27, 2019 received by us on June 14, 2019 for compounding of contraventions of the provisions of the Foreign Exchange Management Act, 1999 (FEMA) and the regulations issued thereunder. The contraventions sought to be compounded are (i) delay in reporting of receipt of foreign inward remittances towards subscription of equity, (ii) delay in submission of form FC-GPRs to the Reserve Bank after issue of shares to a person resident outside India, in terms of Paragraph 9(1)(A) and Compounding of contraventions under FEMA 1999 M/s Felguera Gruas India Private Limited CA No. HYD 433 Paragraph 9(1)(B) of Schedule 1 to Foreign Exchange Management (Transfer 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 (hereinafter 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 December 02, 2009 (CIN: U74900AP2009PTC066058). The company is engaged in the business of “Construction and maintenance of industrial facilities such as refineries, chemical plants etc”. b) The applicant had received foreign inward remittances from the following foreign investors as indicated below: S. Name of Remitter Total Amount (INR) Date of Receipt Date of No Reporting 1 Felguera Gruas Y Almacenaje S.A 7,20,000 29-03-2010 23-04-2010 2 Acervo, S.A. 1,80,000 29-03-2010 23-04-2010 3 Duro Felguera, S.A. 5,00,00,000 28-03-2014 09-04-2014 4 Duro Felguera, S.A. 6,00,00,000 02-09-2014 10-09-2014 5 Duro Felguera, S.A. 16,94,25,000 10-03-2015 06-04-2015 6 Duro Felguera, S.A. 16,95,46,575 25-03-2015 20-04-2015 7 DF Operaciones Y Montajes, S.A. 5,78,425 25-03-2015 20-04-2015 8 Duro Felguera, S.A. 35,99,05,000 02-02-2016 19-02-2016 9 Duro Felguera, S.A. 5,73,72,700 29-02-2016 29-04-2016 10 Duro Felguera, S.A. 37,50,06,750 21-03-2016 02-05-2016 11 Duro Felguera, S.A. 49,49,36,775.90 19-07-2016 03-08-2016 12 DF Operaciones Y Montajes, S.A. 2,97,136.35 22-07-2016 03-08-2016 13 Duro Felguera, S.A. 41,00,00,000 28-10-2016 18-11-2016 14 Duro Felguera, S.A. 54,24,70,919.20 16-12-2016 09-01-2017 15 Duro Felguera, S.A. 11,33,56,976.15 19-12-2016 09-01-2017 16 DF Operaciones Y Montajes, S.A. 3,27,642.10 19-12-2016 09-01-2017 17 Duro Felguera, S.A. 3,59,80,850 30-03-2017 23-09-2019

Compounding of contraventions under FEMA 1999 M/s Felguera Gruas India Private Limited CA No. HYD 433 S. Name of Remitter Total Amount (INR) Date of Receipt Date of No Reporting 18 DF Operaciones Y Montajes, S.A. 18,000 27-04-2017 20-06-2017 19 Duro Felguera, S.A. 3,49,82,000 15-05-2017 14-07-2017 20 DF Operaciones Y Montajes, S.A. 18,000 15-05-2017 14-07-2017 21 Duro Felguera, S.A. 1,79,91,000 23-06-2017 26-08-2017 22 DF Operaciones Y Montajes, S.A. 9,000 23-06-2017 26-08-2017 23 Duro Felguera, S.A. 1,84,91,000 02-08-2017 11-08-2017 24 DF Operaciones Y Montajes, S.A. 9,000 02-08-2017 11-08-2017 25 Duro Felguera, S.A. 1,87,41,000 01-09-2017 16-11-2017 26 DF Operaciones Y Montajes, S.A. 9,000 01-09-2017 16-11-2017 27 Duro Felguera, S.A. 1,92,41,000 18-09-2017 16-11-2017 28 DF Operaciones Y Montajes, S.A. 9,000 18-09-2017 16-11-2017 29 Duro Felguera, S.A. 3,91,80,000 27-09-2017 16-11-2017 30 DF Operaciones Y Montajes, S.A. 20,000 27-09-2017 16-11-2017 31 Duro Felguera, S.A. 2,94,85,000 08-11-2017 25-04-2018* 32 DF Operaciones Y Montajes, S.A. 15,000 08-11-2017 25-04-2018* 33 Duro Felguera, S.A.

1,91,40,000 18-12-2017 24-05-2018* 34 DF Operaciones Y Montajes, S.A. 10,000 18-12-2017 24-05-2018* 35 Duro Felguera, S.A. 1,25,28,000 12-01-2018 01-05-2018* 36 DF Operaciones Y Montajes, S.A. 6,000 11-01-2018 01-05-2018* 37 Duro Felguera, S.A. 3,44,83,000 28-02-2018 01-05-2018* 38 DF Operaciones Y Montajes, S.A. 17,000 28-02-2018 01-05-2018* 39 Duro Felguera, S.A. 3,99,80,000 26-03-2018 01-05-2018* 40 DF Operaciones Y Montajes, S.A. 20,000 26-03-2018 01-05-2018* 41 Duro Felguera, S.A. 1,81,91,000 10-04-2018 01-05-2018 42 DF Operaciones Y Montajes, S.A. 9,000 10-04-2018 01-05-2018 43 Duro Felguera, S.A. 3,39,13,000 08-05-2018 24-07-2018* 44 DF Operaciones Y Montajes, S.A. 17,000 08-05-2018 24-07-2018* 45 Duro Felguera, S.A. 2,82,86,000 15-06-2018 14-08-2018* 46 DF Operaciones Y Montajes, S.A. 14,000 15-06-2018 16-08-2018* 47 Duro Felguera, S.A. 1,97,00,000 15-06-2018 14-08-2018* 48 Duro Felguera, S.A. 1,00,00,000 08-06-2018 29-06-2018 49 Duro Felguera, S.A. 1,85,76,000 06-06-2018 24-07-2018* 50 DF Operaciones Y Montajes, S.A. 24,000 06-06-2018 24-07-2018* 51 Duro Felguera, S.A. 1,00,00,000 08-06-2018 29-06-2018 52 Duro Felguera, S.A.

3,99,75,000 15-06-2018 14-08-2018* 53 DF Operaciones Y Montajes, S.A. 25,000 28-06-2018 16-08-2018* 54 Duro Felguera, S.A. 2,60,67,000 15-06-2018 24-07-2018* 55 DF Operaciones Y Montajes, S.A. 13,000 15-06-2018 24-07-2018*

Compounding of contraventions under FEMA 1999 M/s Felguera Gruas India Private Limited CA No. HYD 433 S. Name of Remitter Total Amount (INR) Date of Receipt Date of No Reporting 56 Duro Felguera, S.A. 1,98,40,000 17-07-2018 14-08-2018 57 DF Operaciones Y Montajes, S.A. 10,000 13-07-2018 16-08-2018* 58 Duro Felguera, S.A. 2,00,00,000 23-07-2018 14-08-2018 59 Duro Felguera, S.A. 7,99,50,000 16-07-2018 14-08-2018 60 DF Operaciones Y Montajes, S.A. 50,000 23-07-2018 28-08-2018* 61 Duro Felguera, S.A. 1,39,93,000 21-08-2018 Not Required 62 DF Operaciones Y Montajes, S.A. 7,000 21-08-2018 Not Required 63 Duro Felguera, S.A. 4,22,44,000 04-09-2018 Not Required 64 DF Operaciones Y Montajes, S.A. 21,000 04-09-2018 Not Required 65 Duro Felguera, S.A. 62,68,000 28-09-2018 Not Required 66 Duro Felguera, S.A. 5,00,00,000 28-09-2018 Not Required 67 Duro Felguera, S.A. 80,00,000 28-09-2018 Not Required 68 DF Operaciones Y Montajes, S.A. 32,000 01-10-2018 Not Required 69 Duro Felguera, S.A. 3,34,77,723 05-10-2018 Not Required 70 Duro Felguera, S.A. 1,62,71,277 05-10-2018 Not Required 71 DF Operaciones Y Montajes, S.A. 26,000 06-10-2018 Not Required 72 Duro Felguera, S.A. 30,00,000 12-10-2018 Not Required 73 Duro Felguera, S.A. 47,58,000 01-11-2018 Not Required 74 DF Operaciones Y Montajes, S.A. 2,000 01-11-2018 Not Required 75 Duro Felguera, S.A. 8,94,95,000 05-12-2018 Not Required 76 DF Operaciones Y Montajes, S.A. 45,000 05-12-2018 Not Required 77 Duro Felguera, S.A. 49,00,000 03-01-2019 Not Required 78 DF Operaciones Y Montajes, S.A. 2,000 18-01-2019 Not Required 79 Duro Felguera, S.A. 1,70,91,000 18-01-2019 Not Required 80 DF Operaciones Y Montajes, S.A. 7,820 29-01-2019 Not Required Total 3,73,88,07,569.70 For Sl Nos. 61 to 80, reporting is not required, since reporting of inward remittances in form ARF has been discontinued with effect from September 01, 2018, by amendment to Notification No. FEMA 20(R)(3)/2018 dated August 30, 2018. * Late Submission Fee for the transactions undertaken after November 07, 2017 has been levied. The applicant reported receipt of remittances towards share subscription amounting to ₹ 2,98,88,22,749.70 from 23.04.2010 to 16.11.2017 to the Regional Office of Reserve Bank of India, out of which remittances amounting to ₹ 59,85,78,300/- were reported with delays ranging from 12 days to 2 years 4 months 25 days

Compounding of contraventions under FEMA 1999 M/s Felguera Gruas India Private Limited CA No. HYD 433 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: S. Name of Investor Date of allotment Number of shares Amount for which Date of reporting No of shares allotted shares allotted (INR) 1 Felguera Gruas Y 29-03-2010 720 7,20,000 20-10-2010 Almacenaje S.A. 2 Acervo, S.A. 180 1,80,000 3 Duro Felguera, S.A. 31-03-2014 50,000 5,00,00,000 30-04-2014 4 Duro Felguera, S.A. 10-09-2014 60,000 6,00,00,000 12-12-2014 5 Duro Felguera, S.A. 25-03-2015 338971 33,89,71,000 21-04-2015 DF Operaciones Y 578 5,78,000 Montajes, S.A. 6 Duro Felguera, S.A. 03-02-2016 3,59,905 35,99,05,000 03-03-2016 7 Duro Felguera, S.A. 29-02-2016 57,372 5,73,72,000 16-05-2016 8 Duro Felguera, S.A. 22-03-2016 3,75,006 37,50,06,000 16-05-2016 9 Duro Felguera, S.A. 20-07-2016 4,94,936 49,49,36,000 20-08-2016 10 DF Operaciones Y 25-07-2016 297 2,97,000 22-08-2016 Montajes, S.A. 11 Duro Felguera, S.A. 28-10-2016 4,10,000 41,00,00,000 26-11-2016 12 Duro Felguera, S.A. 22-12-2016 5,42,470 54,24,70,000 19-01-2017 13 Duro Felguera, S.A. 22-12-2016 1,13,356 11,33,56,000 19-01-2017

Compounding of contraventions under FEMA 1999 M/s Felguera Gruas India Private Limited CA No. HYD 433 S. Name of Investor Date of allotment Number of shares Amount for which Date of reporting No of shares allotted shares allotted (INR) DF Operaciones Y 327 3,27,000 Montajes, S.A. 14 Duro Felguera, S.A. 31-03-2017 35,980 3,59,80,000 23-09-2019 15 DF Operaciones Y 14-06-2017 36 36,000 14-07-2017 Montajes, S.A. Duro Felguera, S.A. 34,982 3,49,82,000 16 Duro Felguera, S.A. 11-08-2017 36,482 3,64,82,000 07-06-2018 DF Operaciones Y 18 18,000 Montajes, S.A. 17 Duro Felguera, S.A. 12-09-2017 18,741 1,87,41,000 06-06-2018 DF Operaciones Y 9 9,000 Montajes, S.A. 18 Duro Felguera, S.A. 18-09-2017 19,241 1,92,41,000 06-06-2018 DF Operaciones Y 9 9,000 Montajes, S.A. 19 Duro Felguera, S.A. 23-10-2017 39,180 3,91,80,000 06-06-2018 DF Operaciones Y 20 20,000 Montajes, S.A. 20 Duro Felguera, S.A. 04-12-2017 29,485 2,94,85,000 06-06-2018* DF Operaciones Y 15 15,000 Montajes, S.A. 21 Duro Felguera, S.A. 19-12-2017 19,140 1,91,40,000 06-06-2018* DF Operaciones Y 10 10,000 Montajes, S.A. 22 Duro Felguera, S.A. 25-01-2018 12,528 1,25,28,000 06-06-2018*

Compounding of contraventions under FEMA 1999 M/s Felguera Gruas India Private Limited CA No. HYD 433 S. Name of Investor Date of allotment Number of shares Amount for which Date of reporting No of shares allotted shares allotted (INR) DF Operaciones Y 6 6,000 Montajes, S.A. 23 Duro Felguera, S.A. 16-03-2018 34,483 3,44,83,000 06-06-2018* DF Operaciones Y 17 17,000 Montajes, S.A. 24 Duro Felguera, S.A. 23-03-2018 39,980 3,99,80,000 31-12-2018* DF Operaciones Y 20 20,000 Montajes, S.A. 25 Duro Felguera, S.A. 26-04-2018 18,191 1,81,91,000 06-06-2018* DF Operaciones Y 9 9,000 Montajes, S.A. 26 Duro Felguera, S.A. 11-05-2018 33,913 3,39,13,000 24-12-2018* DF Operaciones Y 17 17,000 Montajes, S.A. 27 Duro Felguera, S.A. 28-06-2018 1,52,604 15,26,04,000 29-06-2019* DF Operaciones Y 76 76,000 Montajes, S.A. 28 Duro Felguera, S.A. 03-08-2018 1,19,790 11,97,90,000 05-02-2019* DF Operaciones Y 60 60,000 Montajes, S.A. 29 Duro Felguera, S.A. 29-09-2018 56,237 5,62,37,000 02-08-2019* DF Operaciones Y 28 28,000 Montajes, S.A. 30 Duro Felguera, S.A. 20-11-2018 1,21,774 12,17,74,000 16-07-2019* DF Operaciones Y 60 60,000 Montajes, S.A. 31 Duro Felguera, S.A. 01-02-2019 1,11,486 11,14,86,000 25-07-2019*

Compounding of contraventions under FEMA 1999 M/s Felguera Gruas India Private Limited CA No. HYD 433 S. Name of Investor Date of allotment Number of shares Amount for which Date of reporting No of shares allotted shares allotted (INR) DF Operaciones Y 54 54,000 Montajes, S.A. Total 37,38,799 3,73,87,99,000 *Late Submission Fee for the transactions undertaken after November 07, 2017 has been levied.

The applicant filed form FCGPRs for the allotment of shares from 29.03.2010 to 23.10.2017 amounting to ₹ 2,98,88,16,000/- as indicated above, out of which ₹ 1,13,78,94,000/- were reported with delays ranging from 1 day to 2 years 4 months 24 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 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/ 806 /14.66.003/2019-20 dated October 03, 2019 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 09, 2019 during which Shri. G. Vamsi Krishna, Project Manager 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 mainly due to administrative constraints. In view of the foregoing, the representative of the applicant requested to take a lenient view in disposal of the application. The Compounding of contraventions under FEMA 1999 M/s Felguera Gruas India Private Limited CA No. HYD 433 application for compounding is, therefore, being considered on the basis of the averments made in the application.

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 ₹ 59,85,78,300/- and the period of contravention ranges from 12 days to 2 years 4 months 25 days approximately. (b) Paragraph 9(1)(B) of Schedule 1 to Notification No. FEMA 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 ₹ 1,13,78,94,000/- and the period of contravention ranges from 1 day to 2 years 4 months 24 days approximately.

5. It has been declared in the compounding application dated May 27, 2019, 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 May 27, 2019 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.

Compounding of contraventions under FEMA 1999 M/s Felguera Gruas India Private Limited CA No. HYD 433 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 ₹ 4,74,322 /- (Rupees Four Lakh Seventy Four Thousand Three Hundred Twenty Two 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 ₹ 4,74,322 /- (Rupees Four Lakh Seventy Four Thousand Three Hundred Twenty Two 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 10th day of October 2019.

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