2013 (10) TMI 1006

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 2. Mr. Dhond, learned Senior counsel for RBI submits that the impugned communication dated 17 October 2012 ought to have been challenged at the relevant time and there has been delay on the part of the petitioners in waiting till the order of adjudication was passed on 7 August 2013 by Special Director, Enforcement. The petitioners application for compounding was rejected by the impugned communication dated 17 October 2012 which reads as under:-    "Please refer to your compounding application dated August 31, 2012 for compounding the contravention of Regulation 6(4) of Notification No.FEMA/120/RB2000 dated July 7, 2004 with regard to extension of corporate guarantee on behalf of the overseas JV in Cyprus.   &n....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e of Enforcement to take a final view on the nature of the contravention and to determine as to whether the contravention is of a nature such that it can be compounded under Section 15 of the Foreign Exchange Management Act, 1999." 4. Learned counsel for the petitioner has invited our attention to the fact that before the adjudicating authority the petitioners had pointed out that the contravention was of a technical nature as the petitioner was required to obtain approval from the Government for the petitioner undertaking financial commitment in JV/WOS without equity contribution. Para 5.17 of the impugned order dated 7 August 2013 (page 409) reads as under:-    5.17. The noticees have relied on the RBI's A.P. (DIR Series) ....