Palvai Solar Energy Pvt Ltd

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: July 17, 2019 C.A. HYD 430 In the matter of M/s. Palvai Solar Energy Pvt Ltd Plot No.26, Durga Nagar, Ameerpet Hyderabad, Telangana-500016 (Applicant) In exercise of the powers conferred under Sub-Section (1) of Section 15 of Foreign Exchange Management Act, 1999 and the Regulations/ Rules/ Notifications/ Orders made there under, I pass the following Order The applicant has filed compounding application dated May 20, 2019 received on May 24, 2019 for compounding of contraventions of the provisions of the Foreign Exchange Management Act, 1999 (FEMA) and the regulations issued there under. The contraventions sought to be compounded are (i) delay in reporting receipt of foreign inward remittances; (ii) delay in submission of Form FCGPR to the Regional Office of the Reserve Bank after issue of shares to a person resident outside India and (iii) delay in filing the annual return in respect of the Foreign Liabilities and Assets, in terms of Paragraph 9(1)(A), Paragraph 9(1)(B) and Paragraph 9(2) of Schedule 1 to Foreign Exchange Management (Transfer or Issue of Security by a person resident

Compounding of contraventions under FEMA 1999 M/s Palvai Solar Energy Private Limited CA No. HYD 430 outside India) Regulations, 2000 notified vide Notification No. FEMA. 20/2000-RB dated 3rd May 2000 as then applicable (hereinafter referred to as Notification No. FEMA 20/2000-RB) and Regulation 13.1(3) of Schedule 1 to FEMA 20(R)/2017-RB dated November 7, 2017 as amended from time to time. 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 September 26, 2013 (CIN: U40106TG2013PTC090224). The company is engaged in electric power generation using solar energy. b) The applicant had received foreign inward remittances from single foreign investor as indicated below. Name of the Date of Date of S.No Amount (INR) remitter Receipt reporting 1 Reliance Global 43799708 19/05/2014 01/07/2014 2 Services Inc 29159708 Total 7,29,59,416 The applicant reported receipt of remittances towards share subscription amounting to ₹ 7, 29, 59,416 /- from single investor M/s Reliance Global Services Inc with the delay of 13 days approximately beyond the prescribed limit. 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 applicant allotted equity shares and filed form FC-GPRs as indicated below.

Compounding of contraventions under FEMA 1999 M/s Palvai Solar Energy Private Limited CA No. HYD 430 Date of No. of Amount for Date of reporting Name of allotment of Shares which shares investor to RBI shares allotted allotted (INR) Reliance Global 17/07/2014 7295940 72959400 25/03/2015 Services Inc Total 7,29,59,400 The applicant filed form FCGPRs for the allotment of shares amounting to ₹ 7, 29, 59,400/- to the Regional Office of Reserve Bank of India, was reported with a delay of 7 months 9 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 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. d) The applicant has delayed in filing FLA Return (Foreign liabilities and Assets) as shown below: S.No FLA returns for the F.Y Due date to file Actual date of filing 1. 2014-15 15.07.2015 26.06.2019 2. 2015-16 15.07.2016 26.06.2019

3. 2016-17 15.07.2017 26.06.2019

4. 2017-18 15.07.2018 26.06.2019 The applicant had filed FLA returns for the years 2014-15, 2015-16, 2016-17 and 2017-18 with delays ranging from 11 months 11 days to 3 years 11 months 11 days approximately, whereas in terms of Paragraph 9(2) of Schedule I to Notification No. FEMA 20/2000-RB dated May 03, 2000 as then applicable and Regulation 13.1(3) of Schedule 1 to Notification No. FEMA 20 (R)/2017-RB dated November 07, 2017, “All Indian companies which have received Foreign Direct Investment in the previous

Compounding of contraventions under FEMA 1999 M/s Palvai Solar Energy Private Limited CA No. HYD 430 year(s) including the current year shall submit to the Reserve Bank of India, on or before the 15th day of July of each year, [a report titled ‘Annual Return on Foreign Liabilities and Assets’ (FLA) as specified by the Reserve Bank from time to time]. 3. (a) The applicant was given an opportunity for personal hearing vide Reserve Bank’s letter No. HY.FE.FID/ 101 /14.66.003/2019-20 dated July 10, 2019 for further submission in person and/or producing documents, if any, in support of the application. (b) The applicant vide mail dated July 15, 2019 stated that they are foregoing appearing for the personal hearing and requested that the compounding application may be disposed of 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:- (a) Paragraph 9(1) (A) of Schedule 1 to Notification No. 20/2000-RB for delay in reporting the receipt of consideration to Reserve Bank of India relates to an amount of ₹ 7,29,59,416 /- with a delay of 13 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 ₹ 7,29,59,400/- with a delay of 7 months 9 days approximately. (c) Paragraph 9(2) of Schedule 1 to Notification No. FEMA. 20/2000-RB for delay in filing of Annual Return on Foreign Liabilities and Assets to Reserve Bank of India for the financial years 2014-15, 2015-16 and 2016-17 with delays ranging from 1 year 11 months 11 days to 3 years 11 months 11 days approximately. (d) Regulation 13.1(3) of Schedule 1 to Notification No. FEMA 20 (R)/2017-RB dated November 07, 2017 for delay in filing of Annual Return on Foreign Liabilities and Compounding of contraventions under FEMA 1999 M/s Palvai Solar Energy Private Limited CA No. HYD 430 Assets to Reserve Bank of India for the financial year 2017-18 with a delay of 11 months 11 days approximately. 5. It has been declared in the compounding application dated May 20, 2019 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 May 20, 2019 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. 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 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 ₹ 97, 500 /- (Rupees Ninety Seven Thousand and Five hundred Only) will meet the ends of justice.

7. Accordingly, I compound the admitted contraventions, namely, the contraventions of Paragraph 9 (1) (A), Paragraph 9(1) (B) and Paragraph 9(2) of Schedule 1 to Notification No. FEMA-20/2000-RB and Regulation 13.1 (3) of Schedule 1 to Notification No. FEMA 20 (R)/2017-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 ₹ 97, 500 /- (Rupees Ninety Seven Thousand and Five hundred Only) which shall be deposited by the applicant with the Reserve Bank of Compounding of contraventions under FEMA 1999 M/s Palvai Solar Energy Private Limited CA No. HYD 430 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, Rule 10 of the Foreign Exchange (Compounding Proceedings) Rules, 2000 dated May 3, 2000 shall apply.

The application is disposed accordingly. Dated this 17th day of July 2019

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