M/s. PACT for Rural Livelihoods Private Limited

Shri M.K. Mall Regional Director (Odisha) and Chief General Manager (Bhubaneswar) Compounding Authority Date: September 17, 2018 C.A. No. BHU14/2018

In the matter of M/s. PACT for Rural Livelihoods Private Limited Plot No. 481/5257, Nageshwar Tangi Bhubaneswar, Odisha-751002 (Applicant)

In exercise of the powers under Section 15 (1) of the Foreign Exchange Management Act, 1999 and the Regulations/Rules/Notifications/Orders made thereunder, I pass the following Order

The applicant has filed a compounding application dated June 22, 2018 for compounding of contraventions of the provisions of the Foreign Exchange Management Act, 1999 (the FEMA) and the regulations issued thereunder. The contravention sought to be compounded is delay in reporting receipt of foreign inward remittances towards subscription to equity in terms of paragraph 9(1)(A) of Schedule I 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

M/s. PACT for Rural Livelihoods Private Limited CA No. BHU14/2018 and as amended from time to time (hereinafter referred to as Notification No.FEMA 20/2000-RB) read with A.P. (DIR Series) Circular No.20 dated December 14, 2007.

2. Therelevant facts of the case are as follows: The applicant was incorporated on August 23, 2013 and deals in Agriculture and food processing activities. The applicant received the following inward remittances from foreign investors under automatic route and reported the same to Reserve Bank of India with delay. Sl. Amount of Foreign Receipt Date Reporting Date to No. Inward Remittance (₹) RBI 1 41,58,377.00 26.08.2016 28.06.2017 2 8,43,970.00 31.03.2017 28.06.2017 3 14,90,125.00 03.04.2017 28.06.2017 4 1,03,21,875.00 24.05.2017 28.06.2017 5 15,82,990.00 03.08.2017 21.09.2017 6 9,63,850.00 25.09.2017 03.11.2017 7 9,63,850.00 25.09.2017 03.11.2017 8 12,77,120.00 06.11.2017 09.02.2018 Total 216,02,157.00 The applicant reported receipt of remittances to the Reserve Bank on dates indicated above and with delay ranging from 04 to 276 days approximately beyond the stipulated time of 30 days. Whereas, in terms of para 9 (1) A of Schedule I to Notification No. FEMA 20/2000- RB, an Indian company issuing shares or convertible debentures in accordance with these Regulations should report receipt of foreign inward remittances 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. 3. The applicant was given an opportunity for personal hearing vide the Reserve Bank’s letter FED (Bhu)No.73/08.02.262/2018-19 dated September 07, 2018 for further submission in person and/or producing documents, if any, in support of the application. However, the applicant, vide its e-mail dated September 07, 2018, opted-out from appearing in personal hearing stating that they have already submitted the reasons for delay in reporting in their application and that their case may be considered based on material

M/s. PACT for Rural Livelihoods Private Limited CA No. BHU14/2018 already submitted. The applicant, in the compounding application, had admitted the contraventions as stated in para 2 above for which compounding has been sought. It had been submitted that the delays 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. 4. I have given my careful consideration to the documents on record and submission made by the applicant in the compounding application. Accordingly, I hold that the applicant has contravened the following FEMA provisions issued in terms of para 9 (1) A of Schedule 1 to Notification No. FEMA 20/2000-RB due to delay in reporting of receipt of inward remittances towards subscription of equity shares as detailed in para 2 above. The contravention relates to an amount of ₹ 216,02,157.00 and the duration ranging from 04 to 276 days approximately. 5. In terms of Section 13 of the FEMA, 1999 if any person contravening any provision of the Act, or contravenes any rule, regulation, notification, direction or order issued in exercise of the powers under this Act, or contravenes any condition subject to which an authorization is issued by the Reserve Bank, he, upon adjudication, shall be liable to a penalty up to thrice the sum involved in such contravention.

However, taking into account the relevant facts and circumstances of the case as stated in the foregoing paras, I am of the view that an amount of ₹ 21,583/- (Rupees twenty one thousand five hundred and eighty three only) will meet the ends of justice. 6. Accordingly, I compound the admitted contraventions namely, the contraventions of para 9(1) (A) of Schedule 1 to Notification No. FEMA 20/2000-RB dated May3, 2000 read with AP (DIR Series) Circular No.20 dated December 14, 2007 by the applicant on the facts discussed above in terms of the Foreign Exchange (Compounding Proceedings) Rules, 2000 on payment of an amount of ₹ 21,583/- (Rupees twenty one thousand five hundred and eightythree only) which shall be deposited bythe applicant with the Reserve Bank of India, Foreign Exchange Department, Bhubaneswar by a demand draft drawn in favour of the “Reserve Bank of India” and payable at Bhubaneswar within a period of 15 days from the date of this order. In case of failure to deposit the compounded amount within the above

M/s. PACT for Rural Livelihoods Private Limited CA No. BHU14/2018 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 17th day of September, 2018. Sd/- (M.K. Mall) Regional Director (Odisha) and Chief General Manager (Bhubaneswar)