PROVISION REGARDING COMPOUNDING IN RESPECT OF PROJECT OFFICE

[Guest]

Hello,

Can anybody tell me the provision regarding compounding in respect of Project office/Branch office/Liasion office under FEMA?

[DR.MARIAPPAN GOVINDARAJAN]

Section 15 of FEMA Act provide for compounding of offences. According to this section any contravention under Section 13 may, on an application made by the person committing such contravention be compounded within 180 days from the date of receipt of application by the Director of Enforcement in such manner as may be prescribed. Section 2(u) defines the term 'person' includes an individual, a HUF, a company, a Firm, an association of person or body of individuals, whether incorporated or not, every artificial judicial person, any agency, office or branch owned or controlled by such persons.

[Guest]

Thanks for ur suggestion, but I have applied for upgradation of Liasion office into branch office in India of NPO whose registered office is in Sri lanka and and from this branch office i want to do project office work so please provide me the solution regarding this that can i do project work from that branch office? or i want to take separate approval for project work under provision of project office under FEMA from AD

[DR.MARIAPPAN GOVINDARAJAN]

Dear Sir,

I will check it up and revert to you.

[Guest]

Ok Sir.

[Mahir S]

Please do refer Notification No.FEMA 22 /2000-RB dated 3rd May 2000 issued by the RBI.

 

[Guest]

Thanks for the reply but do you provide me reference for case studies regarding the above mentioned matter, if you have any.

[Mahir S]

Ok, no problem.

I had also today messaged you an article on the said issue.

AI Summary

Compounding of FEMA contraventions under Section 15 can be sought for Section 13 breaches; project office approval query persists. Section 15 provides that compounding may be sought for contraventions under Section 13 in the prescribed manner; the definition of person includes offices or branches owned or controlled by entities. A key regulatory question is whether a liaison office upgraded to a branch may undertake project work or requires separate approval as a project office under the applicable notification framework.