Narangah Renewable Energy Pvt Ltd

In the RESERVE BANK OF INDIA Foreign Exchange Department Secretariat Road Saifabad, Hyderabad 500 004 Present Shri Kalyan Chakravarthy P Assistant General Manager Date: January 22, 2019 C.A. HYD 364 In the matter of M/s. Narangah Renewable Energy Pvt Ltd 8-2-293/82/A/1130 & 1130/1, Road No. 36 Jubilee Hills, Hyderabad- 500033 (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 filed the compounding application dated November 26, 2018 received on December 04, 2018 for compounding of contraventions of the provisions of the Foreign Exchange Management Act, 1999 (the FEMA) and the regulations issued thereunder. The contraventions sought to be compounded are (i) delay in reporting receipt of foreign inward remittances and (ii) delay in submission of Form FC-GPR to Reserve Bank of India in terms of Paragraph 9(1) (A) and Paragraph 9(1)(B) respectively of Schedule 1 to Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 notified vide

Compounding of contraventions under FEMA 1999 M/s Narangah Renewable Energy Private Limited CA No. HYD 364 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 25.06.2015 (CIN: U40109TG2015FTC123990). The company is engaged in the business of Electricity, gas, steam and air conditioning supply. b) The applicant had received foreign inward remittance from single foreign investor towards allotment of equity shares as indicated below.

Sl Name of the Total Amount Date of Date of No Remitter (INR) Receipt Reporting

1 SunE Solar BV 1,00,000/- 24.10.2016 14.09.2018

Total 1,00,000/-

The applicant received the foreign inward remittance of ₹ 1,00,000/- as indicated above and it was reported to Reserve Bank of India with a delay of 1 year 9 months 22 days approximately beyond the prescribed period of 30 days. 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 shares and filed form FC-GPR as indicated below: Sl Name of the Date of Number of Amount for Date of No. Investor allotment of shares which shares reporting

Compounding of contraventions under FEMA 1999 M/s Narangah Renewable Energy Private Limited CA No. HYD 364 shares allotted allotted (INR) 1 SunE Solar B V 27.10.2016 9999 99,990/- 14.09.2017 **SunEdison 2 Energy Holdings 27.10.2016 1 10/- 14.09.2017 B V Total 10,000 1,00,000/- ** Nominee shareholder. The applicant filed form FCGPR for issue of shares amounting to ₹ 1,00,000/-as indicated above and the same was reported with delay of 9 months 19 days approximately beyond the stipulated period of 30 days. 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 of India 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/1411/14.66.003/2018-19 dated January 17, 2019 for further submission in person and/or producing documents, if any, in support of the application. (b) The applicant vide mail dated January 21, 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:-

Compounding of contraventions under FEMA 1999 M/s Narangah Renewable Energy Private Limited CA No. HYD 364 (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 ₹ 1,00,000/- with the delay of 1 year 9 months 22 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 persons resident outside India and the contravention relates to an amount of ₹ 1,00,000/- with the delay of 9 months 19 days approximately. 5. It has been declared in the compounding application dated November 26, 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 December 04, 2018 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 ₹ 22,660/- (Rupees Twenty Two Thousand Six Hundred Sixty 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 Compounding of contraventions under FEMA 1999 M/s Narangah Renewable Energy Private Limited CA No. HYD 364 amount of ₹ 22,660/- (Rupees Twenty Two Thousand Six Hundred Sixty 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, Rule10 of the Foreign Exchange (Compounding Proceedings) Rules, 2000 dated May 3, 2000 shall apply.

The application is disposed accordingly. Dated this 22nd day of January 2019

Sd/- (Kalyan Chakravarthy P) Assistant General Manager