Nuevo Renewable Power Pvt Ltd

(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 December 23, 2016 received by us on January 3, 2017 for compounding of contravention of the provisions of the Foreign Exchange Management Act, 1999 (the FEMA) and the regulations issued there under. The contraventions sought to be compounded are (i) neither the equity instruments were issued nor the money refunded to the foreign investor, a person resident outside India, within 180 days of the receipt of the inward remittance; (ii) delay in reporting receipt of foreign inward remittances; (iii) delay in submission of Form FC- GPR to the Reserve Bank after issue of shares towards subscription to equity to a FED M/s. Nuevo Renewable Power Pvt. Ltd CA No. HYD 185 person resident outside India in terms of in Paragraph 8, Paragraph 9 (1) (A) and Paragraph 9 (1) (B) of Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) Regulations, 2000 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 and as amended from time to time (hereinafter 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 a private limited company under the Companies Act, 1956 on 02.04.2013. The company is engaged in the business of securing the supply of international solar products and development of application specific photo-voltaic products (“ASPC Products”) and assisting clients in India or elsewhere in the integrating the solar energy solutions in their existing businesses and products and to carry on in India or elsewhere the business of export, import, trade, assemble supply, manufacture, service, deal in all types, kinds, size, brands of solar energy products, photo voltaic products, its accessories, spares and the like.

b) The company reported receipt of remittances towards share application money from the overseas investors as detailed below:

Sl. Name of Remitter Total Amount Date of Date of No. (`) Receipt Reporting 1 Nuevo Power Inc 5,42,900.00 21.05.2013 22.10.2013 2 Nuevo Power Inc 5,86,000.00 01.07.2013 22.10.2013 3 Nuevo Power Inc 8,69,250.00 26.07.2013 22.10.2013 4 Nuevo Power Inc 5,26,000.00 29.08.2013 22.10.2013 5 Nuevo Power Inc 3,08,650.00 30.09.2013 22.06.2015 6 Nuevo Power Inc 4,23,150.00 22.10.2013 22.06.2015

FED M/s. Nuevo Renewable Power Pvt. Ltd CA No. HYD 185 7 Nuevo Power Inc 2,42,120.00 04.12.2013 22.06.2015 8 Nuevo Power Inc 14,86,325.80 17.01.2014 22.06.2015 9 Nuevo Power Inc 46,30,500.00 23.01.2014 09.04.2014 10 Nuevo Power Inc 6,09,900.00 24.02.2014 28.05.2015 11 Nuevo Power Inc 4,82,880.00 10.03.2014 22.06.2015 12 Nuevo Power Inc 9,97,451.40 24.11.2015 26.02.2016 13 Nuevo Power Inc 59,45,977.70 12.01.2016 25.03.2016 14 Nuevo Power Inc 16,69,698.16 12.01.2016 25.03.2016 Total 1,93,20,803.06 The applicant reported receipt of remittances towards share subscription to the Regional Office of Reserve Bank of India with delay ranging from 24 days to 1 year 7 months 22 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 has filed FC-GPRs for issue of shares as detailed below: Sl Name of Investor Date of Number of Amount for Date of No allotment shares which shares reporting of shares allotted allotted (`) Nuevo Power Inc 1 21.05.2013 9,999 99,990 09.04.2014 Nuevo Power Inc 2 17.11.2013 7002 24,24,160 09.04.2014 Nuevo Power Inc 01.04.2014 23,372 81,80,200 29.01.2016 3 Nuevo Power Inc 07.03.2016 7,61,567 76,15,670 05.04.2016 4 Nuevo Power Inc 21.01.2016 99,745 9,97,450 19.02.2016

FED M/s. Nuevo Renewable Power Pvt. Ltd CA No. HYD 185 Total 9,01,685 1,93,17,470

The applicant filed Form FC-GPRs for the allotment of shares amounting to ` 1,07,04,350/- as indicated above with a delay ranging from 3 months 23 days to 1 year 8 months 29 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 FC-GPR along with documents prescribed therein within 30 days from the date of issue of shares to person resident outside India.

d) The company has delayed in allotment of shares beyond the stipulated period of 180 days with a delay of 3 days as detailed below: Sl Name of the investor Date of receipt Excess Share Date of No. of funds application application for Amount (`) refund 1 Nuevo Power Inc 30.09.2013 3,08,650 01.04.2014

Whereas in terms of Paragraph 8 of Schedule 1 to Notification No. FEMA 20/2000-RB, if the shares are not issued within 180 days from the date of receipt of the inward remittance, the amount of consideration so received shall be refunded to the person concerned, provided the Reserve Bank may on an application made to it and for sufficient reasons permit to refund the amount of consideration received towards issue of security, if such amount is outstanding beyond a period of 180 days from the date of receipt. The amendment in paragraph 8 of Schedule 1 to Notification No. FEMA 20/20000-RB was introduced by issue of Foreign Exchange Management (Transfer or Issue of Security by a Person outside India) (Third Amendment Regulation, 2007 notified, vide Notification No. FEMA 170/2007-RB dated November 13, 2007 in the official Gazette of the Govt. of India..

FED M/s. Nuevo Renewable Power Pvt. Ltd CA No. HYD 185 3 a) The applicant was given an opportunity for personal hearing vide Reserve Bank’s letter No HY.FE.FID/1395/14.66.003/2016-17 dated January 18, 2017 for further submission in person and/or producing documents, if any, in support of the application. (b) The applicant vide letter dated January 20, 2017 informed that they opt out from the personal hearing in deference to the RBI statement made under Press Release dated January 18, 2013 and requested to consider the application leniently.

4. I have given my careful consideration to the documents on record and submission made by the applicant during the personal hearing. Accordingly, I hold that the applicant has contravened the following FEMA provisions issued in terms of: (a) Paragraph 8 of Schedule 1 to Notification No. FEMA 20/2000-RB for delay in allotment of shares beyond the stipulated period of 180 days from the date of receipt of foreign inward remittances. The contravention relates to an amount of ` 3,08,650/- and the period of contravention is 3 days approximately. (b) Paragraph 9 (1) (A) of Schedule 1 to Notification No. FEMA.20/ 2000-RB due to delay in reporting of receipt of foreign inward remittances towards subscription to equity shares as detailed above. The contraventions relate to an amount of ` 1,93,20,803.06 and the duration of contravention ranges from 24 days to 1 year 7 months 22 days approximately. (c) Paragraph 9 (1) (B) of Schedule 1 to Notification No. 20/2000-RB due to delay in submission of Form FC-GPR to Reserve Bank after issue of shares to persons resident outside India and the contravention relates to an amount of ` 1,07,04,350/- and the duration of contravention ranges from 3 months 23 days to 1 year 08 months 29 days approximately.

5. In terms of Section 13 of the FEMA, any person contravening any provision of the Act shall be liable to a penalty upto 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 FED M/s. Nuevo Renewable Power Pvt. Ltd CA No. HYD 185 amount for which the contravention is to be compounded and I consider that an amount of `87,337/-(Rupees Eighty Seven Thousand Three Hundred Thirty Seven Only) will meet the ends of justice. 6. Accordingly, I compound the admitted contraventions namely, the contraventions of Paragraph 8, 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 of `87,337/- (Rupees Eighty Seven Thousand Three Hundred Thirty Seven 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.

7. The application has been considered for compounding of the admitted contraventions without prejudice to any action that the Directorate of Enforcement may take based on their detailed investigations. The application is disposed accordingly.

Dated this 03rd day of February 2017

Sd/- (R. Subramanian) Regional Director