Pomelo Infra Projects Private Limited

In the RESERVE BANK OF INDIA Foreign Exchange Department Secretariat Road Saifabad, Hyderabad 500 004 Present R. Subramanian Regional Director Date: May 22, 2017 C.A. HYD 196 In the matter of M/s. Pomelo Infra Projects Private Limited No.302, Ashok Plaza Masab Tank Hyderabad- 500028 (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 February 24, 2017 received by us on March 07, 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) delay in reporting receipt of foreign inward remittances towards subscription to equity; and (ii) delay in submission of Form FC-GPR to the Reserve Bank after issue of shares towards subscription to equity to a person resident outside India in terms of 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

FED M/s. Pomelo Infra Projects Pvt Ltd CA No. HYD 196 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 December 07, 2010. The company is engaged in the business to carry on the business of builders, developers, real estate agents and contractors for construction or demolitions work of any kind, and to purchase or otherwise acquire lands, houses offices, workshops, buildings and premises for the purpose of that business. b) The applicant had received foreign inward remittances from overseas investors towards advance for subscription to equity shares as indicated below:

Sl. Name of Remitter Total Amount (INR) Date of Receipt Date of No. Reporting Chandler Infrastructures 1 3,27,90,255 30-08-2012 17-09-2012 Pte Ltd 2 -do- 1,06,98,128 19-10-2012 01-11-2012 3 -do- 22,16,981 27-08-2012 18-09-2012 4 -do- 1,64,41,082 16-11-2012 20-11-2012 5 -do- 52,13,579 19-11-2012 27-11-2012 6 -do- 32,80,086 20-11-2012 27-11-2012 7 -do- 1,46,42,911 20-03-2013 22-03-2013 8 -do- 75,72,107 28-03-2013 29-03-2013 9 -do- 43,75,551 30-04-2013 03-05-2013 Prasad Anjaneya 10 6,76,50,000 15-12-2010 01-08-2013 Jeereddi Prasad Anjaneya 11 1,80,00,000 23-02-2011 01-08-2013 Jeereddi

FED M/s. Pomelo Infra Projects Pvt Ltd CA No. HYD 196 Chandler Infrastructures 12 1,99,50,098 09-04-2012 01-08-2013 Pte Ltd 13 -do- 53,67,584 04-05-2012 01-08-2013 14 -do- 7,28,86,210 10-09-2014 22-09-2014 Prasad Anjaneya 15 3,14,09,000 13-12-2010 01-08-2013 Jeereddi Chandler Infrastructures 16 73,15,103 03-04-2013 04-04-2013 Pte Ltd Total 31,98,08,675 The applicant reported receipt of remittances towards share subscription amounting to 31,98,08,675 /- to the Regional Office of Reserve Bank of India and remittances amounting to 14,23,76,682 /- was reported with delay ranging from 1 year 1 month 28 ₹ days to 2 years 6 months 19 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 allotted equity shares and filed Form FC-GPRs as indicated below: SN Name of Date of Number of Amount for Date of Investor allotment of shares which shares reporting shares allotted allotted (INR) Prasad 1 Anjaneya 04-06-2011 31,40,900 3,14,09,000 22-04-2013 Jeereddi 2 -do- 04-06-2011 67,65,000 6,76,50,000 22-04-2013 3 -do- 04-06-2011 18,00,000 1,80,00,000 22-04-2013 Chandler 4 Infrastructure 01-09-2012 19,94,650 1,99,46,500 22-04-2013 Pte Ltd

FED M/s. Pomelo Infra Projects Pvt Ltd CA No. HYD 196 5 -do- 01-09-2012 5,35,840 53,58,400 22-04-2013 6 -do- 21-02-2013 2,21,698 22,16,980 22-04-2013 7 -do- 21-02-2013 32,79,025 3,27,90,250 22-04-2013

8 -do- 30-03-2013 10,69,812 1,06,98,120 26-04-2013 9 -do- 30-03-2013 16,44,108 1,64,41,080 26-04-2013 10 -do- 30-03-2013 5,21,357 52,13,570 26-04-2013

11 -do 30-03-2013 3,28,008 32,80,080 26-04-2013 12 -do- 04-05-2013 14,64,290 1,46,42,900 12-07-2013 13 -do- 04-05-2013 4,37,562 43,75,620 12-07-2013

14 -do- 04-05-2013 7,31,510 73,15,100 12-07-2013 15 -do- 04-05-2013 7,57,210 75,72,100 12-07-2013 16 -do- 05-11-2014 72,88,621 7,28,86,210 29.03.2015

Total 3,19,79,591 31,97,95,910

The applicant filed Form FC-GPRs for the allotment of shares amounting to 28, 41, 63,060/- as indicated above with a delay ranging from 1 month 2 days to 1 year 9 months 19 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.

FED M/s. Pomelo Infra Projects Pvt Ltd CA No. HYD 196 3 a) The applicant was given an opportunity for personal hearing vide email dated 15.05.2017 for further submission in person and/or producing documents, if any, in support of the application. (b) The applicant appeared for personal hearing on May 16, 2017 during which Shri.Shiva Rami Reddy, Chartered Accountant and Shri. Anil Dubba, Company Secretary represented the applicant. The representatives of the applicant admitted the contraventions for which the compounding has been sought. During the personal hearing it was submitted that the delay was due to administrative reasons in the initial period and was not willful or with malafide intention. In view of the foregoing, the applicant requested to take a lenient view in disposal of the application. The application for compounding is, therefore, being considered on the basis of the averments made in the application as well the submissions made in this context by the applicant during the personal hearing. 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 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 14, 23, 76,682 /-and the duration of contravention ranges from 1 year 1 month 28 days to 2 years 6 ₹ months 19 days approximately. (b) 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 28, 41, 63,060/- and the duration of contravention ranges from 1 month 2 days to 1 year 9 months 19 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 up to thrice the sum involved in such contravention upon

FED M/s. Pomelo Infra Projects Pvt Ltd CA No. HYD 196 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 - (Rupees Seven Lakh Fifteen Thousand One Hundred Ninety only) will meet the ends of justice. ₹ 7, 15,190 / 6. 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 amount of /- (Rupees Seven Lakh Fifteen Thousand One Hundred Ninety only) which shall be deposited by the applicant with the Reserve Bank of India, Foreign Exchange ₹ 7, 15,190 Department, 1st Floor, Saifabad, Hyderabad - 500004 by a demand draft drawn in favor 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 May 2017.

Sd/- (R. Subramanian) Regional Director