Form FC-GPR reporting delay cannot be fastened on company where authorised dealer bank caused the forwarding lapse.

Delayed reporting of Form FC-GPR under FEMA could not be attributed to the company where the evidence showed that the form and supporting documents had been lodged with the authorised dealer bank and acknowledged by it. The bank's later correspondence to RBI also indicated uncertainty about when the documents were forwarded and sought condonation of its own delay. On that record, the alleged reporting contravention was not proved against the company, and the penalty was unsustainable. The adverse FEMA finding was set aside, with consequential refund of the pre-deposit.

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Issues: Whether the alleged contravention relating to delayed reporting of Form FC-GPR under FEMA was proved, and whether the penalty imposed for non-compliance with the reporting requirement was sustainable.

Analysis: The record showed that the foreign inward remittance was received for issuance of preference shares, that the company had addressed the authorised dealer bank with the relevant Form FC-GPR and supporting documents, and that the original letter bore an acknowledgment dated 05.04.2008. The subsequent letter from the authorised dealer bank to RBI also recorded that the company had claimed submission of FC-GPR to the bank and that the bank could not ascertain when the documents were forwarded to RBI, while seeking condonation of delay on its own part. In these circumstances, the evidence supported the company's case that it had lodged the form with the authorised dealer and that the delay in transmission to RBI was attributable to the bank. The requirement was not shown to have been breached by the company in the manner alleged in the impugned order.

Conclusion: The alleged contravention was not established against the company, and the penalty could not be sustained.

Final Conclusion: The appeal succeeded and the adverse finding under FEMA was set aside, with consequential refund of the pre-deposit directed.

Ratio Decidendi: Where the evidence shows that the reporting form was duly lodged with the authorised dealer bank and the delay in forwarding it to RBI is attributable to the bank, the reporting contravention cannot be fastened on the company and the penalty is unsustainable.

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