LEPL Renergy 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: December 26, 2018 C.A. HYD 342 In the matter of M/s. LEPL Renergy Private Limited No. 8-2-686/49/D/21/1, Road No-12 RC Layout, Banjara Hills Hyderabad – 500 034 (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 submitted the compounding application dated October 25, 2018 received by us on October 30, 2018 for compounding of contraventions of the provisions of 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 after issue of shares to a person resident outside India in terms of Paragraph 9(1)(A) and Paragraph 9(1)(B)

Compounding of contraventions under FEMA 1999 M/s LEPL Renergy Private Limited CA No. HYD 342 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 (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 January 05, 2012 (CIN: U40300TG2012PTC078432). The company is engaged in the business of “Electric power generation using other non-conventional sources”. b) The applicant had received foreign inward remittances from the following foreign investors as indicated below:

Sl Name of Remitter Amount (INR) Date of Date of No Receipt Reporting 1 Futuretech Consultants LLC, USA 2,00,06,978.49 06.05.2014 07.06.2014 2 Futuretech Consultants LLC, USA 2,02,27,143 04.06.2014 03.07.2014 3 Futuretech Consultants LLC, USA 2,45,33,240 08.10.2014 05.06.2015 4 Futuretech Holding Company, USA 2,43,38,175 09.10.2014 05.06.2015 5 Futuretech Consultants LLC, USA 39,79,793 07.11.2014 05.06.2015 6 Futuretech Holding Company, USA 2,46,10,154 14.11.2014 05.06.2015 7 Futuretech Holding Company, USA 1,23,30,150 18.11.2014 05.06.2015 8 Futuretech Consultants LLC, USA 51,44,249 11.12.2014 05.06.2015 9 Futuretech Holding Company, USA 75,94,101 16.12.2014 05.06.2015 10 Futuretech Consultants LLC, USA 99,80,568 20.03.2015 05.06.2015 11 Futuretech Holding Company, USA 4,87,27,175 14.10.2015 07.01.2016 12 Futuretech Holding Company, USA 2,60,39,675 30.10.2015 07.01.2016 13 Futuretech Consultants LLC, USA 43,58,120 30.10.2015 07.01.2016 14 Futuretech Holding Company, USA 5,28,07,670 13.11.2015 28.01.2016 15 Futuretech Holding Company, USA 1,69,99,490 18.11.2016 17.06.2017 Total 30,16,76,681.49

Compounding of contraventions under FEMA 1999 M/s LEPL Renergy Private Limited CA No. HYD 342 The applicant reported receipt of remittances towards share subscription amounting to ₹ 30,16,76,681.49 to the Regional Office of Reserve Bank of India, out of which remittance amounting to ₹ 28,14,49,538.49 were reported with a delay ranging from 2 days to 6 months 29 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 investor Date of Number of Amount for Date of No allotment CCDs allotted which CCDs Reporting of CCDs allotted (INR) 1 Futuretech Consultants 02.07.2014 40,23,411 4,02,34,110 07.01.2016 LLC, USA 2 Futuretech Consultants 03.11.2014 24,53,324 2,45,33,240 07.01.2016 LLC. USA Futuretech Holding 03.11.2014 24,33,817 2,43,38,170 07.01.2016 Company, USA 3 Futuretech Consultants 31.12.2014 9,12,403 91,24,030 07.01.2016 LLC, USA Futuretech Holding 31.12.2014 44,53,440 4,45,34,400 07.01.2016 Company, USA 4 Futuretech Consultants 15.04.2015 9,98,056 99,80,560 07.01.2016 LLC, USA 5 Futuretech Consultants 09.12.2015 4,35,812 43,58,120 29.06.2017 LLC, USA Futuretech Holding 09.12.2015 1,27,57,451 12,75,74,510 29.06.2017 Company, USA 6 Futuretech Holding 10.01.2017 16,99,949 1,69,99,490 10.07.2017 Company, USA Total 3,01,67,663 30,16,76,630

Compounding of contraventions under FEMA 1999 M/s LEPL Renergy Private Limited CA No. HYD 342 The applicant filed form FCGPRs for the allotment of shares amounting to ₹ 30,16,76,630/- to the Regional Office of Reserve Bank of India, which were reported with a delay ranging from 5 months 1 day to 1 year 5 months 21 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/ 1176 /14.66.003/2018-19 dated December 14, 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 December 18, 2018 during which Shri. Ch. N.V. Ranga Kumar and Shri. A. Sreenivas 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. 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. 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 ₹ 28,14,49,538.49 with a delay ranging from 2 days to 6 months 29 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 Compounding of contraventions under FEMA 1999 M/s LEPL Renergy Private Limited CA No. HYD 342 persons resident outside India and the contravention relates to an amount of ₹ 30,16,76,630/- with a delay ranging from 5 months 1 day to 1 year 5 months 21 days approximately.

5. It has been declared in the compounding application dated October 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 October 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 ₹ 5,55,200/- (Rupees Five Lakh Fifty Five Thousand Two Hundred 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 ₹ 5,55,200/- (Rupees Five Lakh Fifty Five Thousand Two Hundred Only) which shall be deposited by the applicant with the Reserve Bank of India, Foreign Exchange Department, 1st Floor, Saifabad, Hyderabad - 500004 by a Compounding of contraventions under FEMA 1999 M/s LEPL Renergy Private Limited CA No. HYD 342 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 accordingly. Dated this 26th day of December 2018

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