Videotap Digital Private Limited

In the matter of Videotap Digital Private Limited RH 8, Ground Floor, Block-RH, ATS Greens Paradiso, Plot No. GH-03, Sector-CHI-4 Greater Noida, Gautam Buddha Nagar, U.P. - 201308 (Applicant)

In exercise of the powers under Section 15(1) of Foreign Exchange Management Act, 1999 and the Regulations/ Rules/ Notifications/ Orders made thereunder, I pass the following Order. ORDER The applicant has filed the compounding application dated November 4, 2019 (received at Reserve Bank of India, New Delhi on November 6, 2019) for compounding of contraventions of the provisions of the Foreign Exchange Management Act, 1999 (hereinafter referred to as FEMA) and the regulations issued thereunder. The contraventions sought to be compounded are those of (i) delay in reporting foreign inward remittance received for issue of shares, and (ii) delay in filing Form FC-GPR after issue of shares, in terms of paragraphs 9(1)(A) and 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 Notification No. FEMA 20/2000-RB dated May 3, 2000 (hereinafter referred to as FEMA 20/2000-RB), as then applicable.

Videotap Digital Private Limited CA No. NDL574/2019

2. The relevant facts of the case are as follows: (a) The applicant company, incorporated on December 22, 2016, is engaged in the business of broadcasting, telecasting relaying, transmitting or distributing in any manner, audio, video or other programmes or software for television, radio, internet, Over The Top (OTT), social media, or any other media, through, including but not limited to terrestrial satellite, cable, direct to home, internet, mobile internet, wifi, any prevailing mobile communication technology or interactive television network or any other technologies or platforms. (b) The applicant had received foreign inward remittance on two occasions during the year 2017 from its foreign investor, M/s Videotap Pte. Ltd., Singapore and reported the same with delay of 2 months & 15 days and 9 months & 12 days beyond the prescribed period, as detailed below, in contravention of paragraph 9(1)(A) of Schedule 1 to FEMA 20/2000-RB, as then applicable. Sl. No. Date of Receipt Amount (₹) Date of Reporting 1 20.03.2017 22,83,423.75 04.07.2017 2 24.04.2017 21,82,912.20 08.03.2018 Total 44,66,335.95

Whereas, in terms of paragraph 9(1)(A) of Schedule 1 to FEMA 20/2000-RB, an Indian company issuing shares or convertible debentures or warrants in accordance with these Regulations shall submit through AD bank to the Regional Office concerned of the Reserve Bank under whose jurisdiction the Registered office of the company operates, not later than 30 days from the date of receipt of the amount of consideration received by Indian company for issue of shares or convertible debentures or warrants, a report in Advance Reporting Form as specified by Reserve Bank from time to time along with documents prescribed therein. (c) The applicant had issued shares on two occasions during the year 2017 to its foreign investor, M/s Videotap Pte. Ltd., Singapore and reported the same with delay of 2 months & 15 days and 9 months & 13 days beyond the prescribed period, as detailed below, in contravention of paragraph 9(1)(B) of Schedule 1 to FEMA 20/2000- RB, as then applicable. Sl. No. Date of Issue Amount (₹) Date of Reporting 1 28.03.2017 22,83,400.00 12.07.2017 2 28.04.2017 21,82,910.00 13.03.2018 Total 44,66,310.00

Videotap Digital Private Limited CA No. NDL574/2019

Whereas, in terms of paragraph 9(1)(B) of Schedule 1 to FEMA 20/2000-RB, an Indian company issuing shares or convertible debentures or warrants in accordance with these Regulations shall submit through AD bank to the Regional Office concerned of the Reserve Bank under whose jurisdiction the Registered office of the company operates, not later than 30 days from the date of issue of shares or convertible debentures or warrants, a report in Form FC-GPR as specified by the Reserve Bank from time to time together with documents prescribed therein. (d) Thus, there are contraventions of paragraphs 9(1)(A) and 9(1)(B) of Schedule 1 to FEMA 20/2000-RB, as then applicable.

3. The applicant was given an opportunity for personal hearing for further submission in person and/ or by producing documents, if any, in support of the application. Ms. Kanchan Gupta, Company Secretary, appeared for personal hearing on February 19, 2020 on behalf of the applicant. The representative admitted the contraventions committed by the applicant for which compounding has been sought. During the personal hearing, she submitted that the contraventions were without any malafide or wilful intention but were mainly due to lack of professional knowledge about RBI related compliances on reporting of inward remittance and issue of shares. She requested for a lenient view in the matter. The application for compounding is, therefore, being considered on the basis of averments made in the application as well as other documents and submissions made during the personal hearing.

4. I have given my careful consideration to the documents on record and submissions made by the applicant during the personal hearing. Accordingly, I hold that the applicant has contravened the following FEMA provisions: (a) Paragraph 9(1)(A) of Schedule 1 to FEMA 20/2000-RB, as then applicable, on account of delay in reporting foreign inward remittance received for issue of shares as detailed in paragraph 2(b) above. The contraventions relate to an amount of ₹44,66,335.95 (Rupees Forty Four Lakh Sixty Six Thousand Three Hundred Thirty Five and Paise Ninety Five only) and the period of delays are 2 months & 15 days and 9 months & 12 days. (b) Paragraph 9(1)(B) of Schedule 1 to FEMA 20/2000-RB, as then applicable, on account of delay in filing Form FC-GPR after issue of shares as detailed in paragraph

Videotap Digital Private Limited CA No. NDL574/2019

2(c) above. The contraventions relate to an amount of ₹44,66,310/- (Rupees Forty Four Lakh Sixty Six Thousand Three Hundred and Ten only) and the period of delays are 2 months & 15 days and 9 months & 13 days

5. It has been declared in the compounding application dated November 4, 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 also been declared in the declaration dated November 4, 2019 furnished with the compounding application 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. 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 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. After considering the submissions made by the applicant and the entire facts and circumstances of the case I am persuaded to compound the contraventions, in line with the Guidance Note on Computation Matrix prescribed as part of Master Direction – Compounding of Contraventions, framed in accordance with the Foreign Exchange (Compounding Proceedings) Rules, 2000. Accordingly, it stands to reason that payment of an amount of ₹25,400/- (Rupees Twenty Five Thousand and Four Hundred only) will meet the ends of justice in the circumstances of this case.

7. Accordingly, I compound the admitted contraventions of paragraphs 9(1)(A) and 9(1)(B) of Schedule 1 to FEMA 20/2000-RB, as then applicable, by the applicant based on the facts detailed above in terms of the Foreign Exchange (Compounding Proceedings) Rules, 2000, on payment of an amount of ₹25,400/- (Rupees Twenty Five Thousand and Four Hundred only) which shall be deposited by the applicant with the Reserve Bank of India, Foreign Exchange Department, 6, Sansad Marg, New

Videotap Digital Private Limited CA No. NDL574/2019

Delhi - 110001 by a demand draft drawn in favour of the “Reserve Bank of India” and payable at New Delhi 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 the 19th day of February 2020.

Sd/- (P S Khual) General Manager