RBI share transfer compliance and forgery allegations failed where documentary proof and bank reporting supported the transaction.

Compliance with the RBI transfer framework for shares held by a person resident outside India was supported by the record, including the required consents, pricing undertaking, chartered accountant certificates, and tax clearance certificate. The forgery allegation was not established because it rested mainly on one chartered accountant's statement without corroborating material, while the file also contained an invoice from that office and a separate valuation certificate supporting the same share value. The transaction was routed through an authorised bank and reported to the RBI, and no contemporaneous regulatory objection was shown. The alleged forgery and FEMA/RBI contravention were therefore not proved, and the exoneration of the noticees was upheld.

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Issues: Whether the alleged forgery of certificates and the alleged contravention of FEMA and RBI transfer guidelines were proved so as to justify interference with the order exonerating the noticees.

Analysis: The documentary record showed compliance with the RBI circular governing transfer of shares by a person resident outside India, including the seller and buyer consents, undertaking on pricing guidelines, chartered accountant certificates, and tax clearance certificate. The allegation of forgery rested substantially on the statement of one chartered accountant, but no corroborative material was produced to establish that the certificates were fabricated. The record also contained an invoice from the said chartered accountant's office and a separate valuation certificate from another chartered accountant supporting the same share value, which weakened the forgery allegation. The transaction was routed through the authorised bank and reported to the RBI, and no adverse inference had been drawn by the regulator at the relevant time.

Conclusion: The alleged forgery and contravention were not proved, and the exoneration of the noticees was upheld.

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