Heavy penalties for company & director for failing to report share issuance under FEMA regulations.

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....Penalty imposed under FEMA for non-compliance with Paragraph 9(1)(B) of Schedule 1 to FEMA Regulations, 2000. Section 13 FEMA does not require intention for penalizing contraventions. Maximum penalty can be three times the contravention amount. Penalty amount is discretionary, based on case facts and evidence. Respondent company failed to report in Form FC-GPR, depriving RBI of information about share issuance compliance. Director responsible for company operations. Appellate Tribunal enhanced penalties to Rs. 20 lakhs and Rs. 10 lakhs respectively on company and director.....