M/s Capricorn Group Pvt Ltd

In the Reserve Bank of India Foreign Exchange Department Mumbai Regional Office Main Building, 3rd floor Shahid Bhagat Singh Marg, Fort Mumbai 400 001 Present Shri Sunil Vinayak Potphode Assistant General Manager June 24, 2019 CA No. MUM841/2019 In the matter of M/s Capricorn Group Pvt Ltd 192, Dhole Patil Rd, Pune 411001 (Applicant) In exercise of the powers conferred under section 15(1) of the Foreign Exchange Management Act, 1999 and the Regulations/Rules/Notifications/Orders made thereunder, I pass the following Order 1 The applicant has filed the compounding application dated January 29, 2019, received at the Reserve Bank on February 22, 2019, for compounding of contravention/s of the provisions of the Foreign Exchange Management Act, 1999 (the FEMA) and the regulations issued thereunder. The contravention sought to be compounded is in respect of the following Regulation/ para under 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 3, 2000 and as amended from time to time (hereinafter referred to as FEMA 20):

FED, MRO, CEFA, M/s Capricorn Group Pvt Ltd, CA No: MUM 841/2019 a) Regulation 10A(b)(i) read with Para 10 under Schedule 1 of FEMA 20: delay in filing form FCTRS. 2 Brief details of the applicant company are as follows: Date of Incorporation April 10, 2002 Its main activities are: Construction Activities

3 The applicant company, M/s Capricorn Group Pvt Ltd, received funds from M/s South Asian Hotels Ltd, Mauritius, (Non Resident) on April 03, 2017 for transferring the shares held by the applicant in M/s Capricorn Castle Management Services Private Ltd. However, the applicant company could not submit the KYC of the Non-Resident entity with Form FC TRS, thus they refunded the amount on April 15, 2019. Delay under Regulation 10A(b)(i) read with Para 10 (whereas, "Y" represents delay in number of years, "M" represents delay in number of months and "D" represents delay in number of days, and LSF stands for : Late Submission Fees S.No Amount involved Remmitance Date of Para 10 (in INR) date refund delay (DD-MM-YY) (DD-MM-YY) 1 100,000.00 03/04/17 15/04/19 1Y 10M 10D TOTAL 100,000.00

The applicant refunded the amount with a delay of 1Y 10M 10D beyond the stipulated period of 60 days. Whereas, in terms of Regulation 10 A (b) (i) read with paragraph 10 of Schedule I to Notification No. FEMA 20, in case of transfer of shares or convertible debentures of an Indian company by way of sale from a person resident in India to a person resident outside India or warrants or vice versa, form FC-TRS has to be submitted to the Authorised Dealer bank within 60 days from the date of receipt or payment of the amount of consideration and that the parties concerned have to adhere to the pricing guidelines, documentation and reporting requirements for such transfers, stipulated by the Reserve Bank from time to time.

4 The applicant was given an opportunity for personal hearing, for further submission in person and/or for producing documents, if any, in support of the application vide e-mail dated June 13, 2019. The applicant applied for waiver of personal hearing vide e mail dated June 18, 2019. The applicant, in the compounding application, had admitted the contraventions as stated above for which compounding has been sought. It had been submitted that the contraventions were not wilful and were unintentional. The application for compounding is, therefore, being considered on the basis of the averments made in the application as well as other documents and submissions made in this context by the applicant. 5 I have given my careful consideration to the documents on record and thereafter. Accordingly, I hold that the applicant has contravened the following FEMA provisions issued in terms of:

FED, MRO, CEFA, M/s Capricorn Group Pvt Ltd, CA No: MUM 841/2019 a) Regulation 10A(b)(i) read with Para 10 under Schedule 1 of FEMA 20, due to the delay in refunding the amount as the Resident shareholder could not complete the reporting requirements after transfer of shares from person resident in India to Non Resident or vice versa and the contravention relates to total amount of Rs.100,000 (Rupees One Lakh Only) with a delay of 1Y 10M 10D approximately.

6 It has been declared in the compounding application dated January 29, 2019 that the particulars given by the applicant in the application are true and correct to the best of their/his/her knowledge and belief. It has also been declared in a declaration attached to 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/him/her 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 contravention which is being compounded in this Order is subject to the veracity of the above declaration 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. 7 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.11,917 (Rupees Eleven Thousand Nine Hundred Seventeen Only) will meet the ends of justice.

8 Accordingly, I compound the admitted contravention/s namely, the contravention/s of Regulation 10A(b)(i) read with Para 10 under Schedule 1 of FEMA 20, 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.11,917 (Rupees Eleven Thousand Nine Hundred Seventeen Only) which shall be deposited by the applicant with the Reserve Bank of India, Foreign Exchange Department, Mumbai Regional Office, Main Building, 3rd floor, Shahid Bhagat Singh Marg, Fort, Mumbai-400001 by a demand draft drawn in favour of the "Reserve Bank of India" and payable at Mumbai 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.

9 The above order is passed only in respect of contravention of Regulation 10A(b)(i) read with Para 10 under Schedule 1 of FEMA 20 and does not restrict the right of any other authority to proceed against the Company for any other violations/contraventions noticed at any point of time.

FED, MRO, CEFA, M/s Capricorn Group Pvt Ltd, CA No: MUM 841/2019

10 The application is disposed of accordingly. dated: June 24, 2019

Compounding Authority (Sunil Vinayak Potphode) Assistant General Manager