Rohini Minerals 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 August 03, 2016 received on August 12, 2016 for compounding of contraventions 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 and (ii) delay in submission of Form FC-GPRs 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 Management (Transfer or FED M/s. Rohini Minerals Private Limited CA No. HYD 149 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 November 09, 1999. The company is engaged in the business of manufacturing of poultry feed. 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 Date of Date of No. Amount (`) Receipt Reporting 1 Reddys Pharma Ltd 1,91,32,848 10.02.2015 24.02.2015 2 Reddys Pharma Ltd 1,88,71,080 26.02.2015 04.04.2015 Munnangi Sitaramjaneya 3 1,92,18,090 09.03.2015 23.06.2015 Reddy Munnangi Sitaramanjaneya 4 1,92,92,605 10.03.2015 13.04.2015 Reddy 5 Reddys Pharma Ltd 1,44,65,612 18.03.2015 18.05.2015 6 Reddys Pharma Ltd 2,88,81,996 25.03.2015 09.05.2015 Munnangi Sitaramanjaneya 7 95,87,850 27.03.2015 23.06.2015 Reddy Total 12,94,50,081

The applicant reported receipt of remittances towards share subscription amounting to `.11,03,17,233/- to the Regional Office of Reserve Bank of India with a delay of ranging from 3 days to 2 months 15 days approximately beyond the prescribed limit 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

FED M/s. Rohini Minerals Private Limited CA No. HYD 149 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: Sl Name of Investor Date of Number of Amount for Date of No allotment shares which shares reporting of shares allotted allotted (`) 1 Reddys Pharma Ltd 28.02.2015 1,00,010 3,80,03,800 02.01.2016

2 Reddys Pharma Ltd 30.03.2015 1,14,072 4,33,47,360 29.12.2015 Munnangi 3 Sitaramanjaneya 30.03.2015 1,26,575 4,80,98,500 29.12.2015 Reddy Total 3,40,657 12,94,49,660

The applicant filed Form FC-GPRs for the allotment of shares amounting to ` 12,94,49,660/- with a delay ranging from 8 months to 9 months 5 days approximately beyond the prescribed limit as indicated above. 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. 3 a) The applicant was given an opportunity for personal hearing vide Reserve Bank’s letter No. HY.FE.FID/794/14.66.003/2016-17 dated October 21, 2016 for further submission in person and/or producing documents, if any, in support of the application. b) The applicant vide e-mail dated October 24, 2016 expressed inability to attend the hearing due to some engagement in other statutory works and requested that the compounding application to be disposed of on merits of the application submitted by them.

FED M/s. Rohini Minerals Private Limited CA No. HYD 149 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. 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 ` 11,03,17,233/-and the duration of contravention ranges from 3 days to 2 months 15 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 ` 12,94,49,660/- and the duration of contravention ranges from 8 months to 9 months 5 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 amount for which the contravention is to be compounded and I consider that an amount of `.1,58,190/- (Rupees One Lakh Fifty Eight Thousand One Hundred Ninety Only) will meet the ends of justice. 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 `.1,58,190/- (Rupees One Lakh Fifty Eight Thousand One Hundred Ninety Only) which shall be deposited by the applicant with the Reserve Bank of India, Foreign

FED M/s. Rohini Minerals Private Limited CA No. HYD 149 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 1st day of November 2016.

Sd/- (Ramanath Dash) Regional Director