Indus Renewable Energy 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: September 18, 2019 C.A. HYD 432 In the matter of M/s. Indus Renewable Energy India Private Limited 1st Floor, 8-2-684/3/55, Plot No. 55, Banjara Green Road No.12, Banjara Hills Hyderabad – 500 034 (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 May 29, 2019 received by us on June 10, 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 and (ii) delay in submission of Form FCGPR to the Reserve Bank after issue of shares to a person resident outside India in terms of Paragraph 9(1)(A) and Paragraph 9(1)(B) of Compounding of contraventions under FEMA 1999 M/s Indus Renewable Energy India Private Limited CA No. HYD 432 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 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 November 10, 2008. The company is engaged in “Hydro Power Generation” activity. b) The applicant had received foreign inward remittances from two foreign investors as indicated below. Sl Name of Remitter Total Amount Date of Date of No (INR) Receipt Reporting 1 52636591.96 23.03.2009 17.04.2009 2 339932000 16.02.2010 17.03.2010 3 90364033 15.07.2010 11.08.2010 4 37474500 11.08.2011 24.01.2012 5 23137250 03.02.2012 28.02.2012 6 130532114 27.02.2012 15.03.2012 7 Indus Power & 115014570 21.11.2012 17.12.2012 Infrastructure 8 8936400 21.03.2013 09.04.2013 (Mauritius) Ltd 9 7201950 07.05.2013 24.05.2013 10 38265750 07.06.2013 01.07.2013 11 6352000 12.11.2013 18.11.2013 12 28810080 06.12.2013 23.12.2013 13 15027500 02.05.2014 15.05.2014 14 14602500 23.05.2014 02.06.2014 15 Indus Power & 36234430 06.06.2014 13.06.2014 Infrastructure 16 13239600 05.08.2014 07.08.2014 (Mauritius) Ltd

Compounding of contraventions under FEMA 1999 M/s Indus Renewable Energy India Private Limited CA No. HYD 432 17 Indus Power & 21637000 24.11.2014 18.12.2014 Infrastructure 18 24728000 30.01.2015 09.02.2015 (Mauritius) Ltd 19 10122000 04.02.2016 24.02.2016 Total 1,01,42,48,268.96 The applicant reported receipt of remittances towards share subscription amounting to ₹ 1,01,42,48,268.96/- to the Regional Office of Reserve Bank of India out of which remittance amounting to ₹ 3,74,74,500/- was reported with a delay of 4 months 14 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/CC which shares reporting of shares PS allotted allotted (INR) 1 21.04.2009 5263659 52636590 29.04.2009 2 24.03.2010 33993200 339932000 08.05.2010 3 20.08.2010 4518201 90364020 12.11.2010 4 26.08.2011 1873725 37474500 24.01.2012 5 Indus Power & 10.03.2012 1156862 23137240 05.04.2012 6 Infrastructure 15.03.2012 6526605 130532100 11.04.2012 7 (Mauritius) Ltd 19.02.2013 5750728 115014560 25.02.2013 8 25.07.2013 2720205 54404100 05.08.2013 9 08.05.2014 2509479 50189580 05.06.2014 10 21.07.2014 2541846 50836920 22.09.2014 11 29.09.2014 661980 13239600 16.02.2015 12 Indus Power & 11.12.2014 1081850 21637000 16.01.2015 13 Infrastructure 23.02.2015 1236400 24728000 27.03.2015 14 (Mauritius) Ltd 23.03.2016 506100 10122000 22.04.2016 Total 1,01,42,48,210

Compounding of contraventions under FEMA 1999 M/s Indus Renewable Energy India Private Limited CA No. HYD 432 The applicant filed form FC-GPRs for the allotment of shares amounting to ₹ 101,42,48,210/- as indicated above, out of which shares amounting to ₹ 57,82,12,040/- and the same were reported with delays ranging from 2 days to 4 months 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 FC-GPR 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/ 687 /14.66.003/2019-20 dated September 17, 2019 for further submission in person and/or producing documents, if any, in support of the application. (b) The applicant vide e-mail dated September 17, 2019 stated that they are foregoing appearing for the personal hearing and requested that the compounding application may be disposed off on the basis of merits in terms of the facts/submission made therein along with the compounding application.

The 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 ₹ 3,74,74,500/- and the period of contravention is 4 months 14 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 Compounding of contraventions under FEMA 1999 M/s Indus Renewable Energy India Private Limited CA No. HYD 432 ₹ 57,82,12,040/- and the period of contravention ranges from 2 days to 4 months approximately. 5. It has been declared in the compounding application dated May 29, 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 29, 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. 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 ₹ 1,07,000/- (Rupees One Lakh Seven 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 ₹ 1,07,000/- (Rupees One Lakh Seven Thousand Only) which shall be deposited by the applicant with the Reserve Bank of India, Foreign Exchange Department, 1st

Compounding of contraventions under FEMA 1999 M/s Indus Renewable Energy India Private Limited CA No. HYD 432 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 18th day of September 2019.

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