TaxTMI 
TaxTMI 
2024 (6) TMI 509
X X X X Extracts X X X X
X X X X Extracts X X X X
....ommunication of the first respondent dated 27.06.2017, thereby returned the application filed by the petitioner for compounding contravention under the Foreign Exchange Management Act, 1999 (hereinafter referred as "FEMA, 1999"). 2. In both the writ petitions, the petitioner is one and the same. The petitioner is engaged in the business of Consultancy. During the course of business, the petitioner purchased 1,50,000 equity shares of Rs. 100/- each of M/s.Vasan Health Care Pvt. Ltd., for a total sale consideration of Rs. 1,50,00,000/- on 30.10.2008. On 21.10.2010, a joint Share Purchase Agreement was entered into between the Sequoia Group (Purchaser) and the promoter of M/s.Vasan Health Care and the petitioner (both sellers). As per the s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....llenged the search conducted by the second respondent in W.P.No.40240 of 2015 and the same was dismissed by this Court by an order dated 05.01.2017. Aggrieved by the same, the petitioner filed writ appeal before this Court in W.A.Nos. 493 & 494 of 2017. Thereafter, the second respondent lodged a complaint under Section 16(3) of FEMA, 1999 before the Special Director, Directorate of Enforcement, Chennai. Pursuant to the same, the petitioner and its Directors were issued show cause notice as to why adjudicating proceedings as contemplated under Section 16 of FEMA, 1999, should not be held against them, in the manner provided under Rule 4 of the FEMA (Adjudicating Proceedings and Appeal) Rules, 2000 for the contraventions of FEMA, 1999 and the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....50,00,502/-, it was received on the same day by Foreign Inward Remittance Certificate. FC-TRA signed by M/s Sequoia Capital India Growth Investment was filed by the petitioner with the authorized dealers, DCB, vide its certificate dated 30.04.2011. As per Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 the FC-TRS ought to have been filed with Development Credit bant on or before 27.12.2010 i.e. 60 days of the receipt of the sale consideration. But it was filed only on 30.04.2011 with a delay. The said contravention being technical, the petitioner opted to file compounding application before the Reserve Bank of India under Rule 4 of the Foreign Exchange (Compounding Proceedings....
X X X X Extracts X X X X
X X X X Extracts X X X X
....time to time and was found to have entered into a profit sharing agreement with non-resident acquirer, which contains a clause proposing deferment of payment of the consideration arising out of sale profit at a future dated and thereby, contravened the provisions of Section 6(3)(b) of FEMA, 1999 read with Regulation 4 and Regulation 10(A) (d) of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 to an extent of Rs. 22,50,00,502/- and rendered themselves liable to penalty under Section 13(1) of FEMA, 1999. Further, the transfer of 30000 shares involving receipt of the said amount, the transferor company resident in India has not filed the Form FC TRS within the due date i.e.27....
X X X X Extracts X X X X
X X X X Extracts X X X X
....omplaint filed under Section 45 of PMLA, 2002 for the offence of money laundering which is made punishable under Section 4 of PMLa, 2002. The said complaint has been taken cognizance in Case No.08 of 2020 on the file of Spoecial Judge (PC Act) (CBI)09, (MPs/MLAs ccases), RADC, New Delhi. 10. Further, the FEMA (Compounding Proceedings) Rules, 2000 have been made under the provisions of Section 15(1) of FEMA, 1999. Rule 8(1) of the Rules states that the Compounding Authority may call for any information, record or any other documents relevant to the compounding proceedings. Under the process established to operationalize this Rule, the applicant, while filing the Compounding Application, is required to submit an undertaking, whether it is ....