TaxTMI 
TaxTMI 
2026 (5) TMI 514
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....) Regulation 2000, to the extent of Rs. 119,99,85,541/-, vide the Impugned Order. 2. Ld. Counsel for the Appellant submitted that M/s RPPL is a private limited company incorporated in the year 1999. The Directors of the Company were S/Shri Chintakunta Munaiah Rajesh, G. Govardhan Naidu, Shri K. Purushotham, etc. On 26.03.2008, M/s RPPL received an amount Rs. 120 Crore in its bank account maintained at SBI, Industrial Development Branch, Saifabad. Hyderabad from the Vostro account maintained by M/s Baring Private Equity Asia IV Mauritius Holdings (4) Limited, Mauritius at Barclays Bank Plc, Mumbai. M/s RPPL reported the receipt of remittances towards share subscription amounting to Rs. 120 Crore to Regional Office of Reserve Bank of India (RBI), Hyderabad on 02.04.2008 within the stipulated period of 30 days from the date of receipt of inward remittance. M/s RPPL reported in the form FC-GPR about the allotment of shares amounting to Rs. 119,99,85,841/- allegedly with delay of around four years i.e. on 10.04.2012 beyond the prescribed period of 30 days which is evident from Reserve Bank of India (RBI) letter dated 09.01.2013 addressed to M/s RPPL. M/s RPPL filed a compounding appl....
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.... Regulations, 2000. 4. Ld. Counsel submitted that Shri Golluru Seshadri Vasan, Assistant Manager (Secretarial) of M/s RPPL in his statement dated 13.11.2013, had stated that he joined M/s RPPL in the year 2006 as Assistant Manager (Secretarial). M/s RPPL was incorporated in the year 1999 and had been engaged in the business of Infrastructure Development Constructions. The Company had completed most of irrigation projects for Andhra Pradesh State Irrigation Department. On 26.03.2008, the Company received an amount of Rs. 120 Crore as FDI under automatic route from M/s Baring Private Equity Asia IV Mauritius Holdings (4) Ltd., Mauritius. The Company reported to RBI on 03.04.2008 that they have issued 37,26,316 Convertible Preference shares on the same day. They had reported regarding issuance of shares to Foreign Investor, to their AD Bank i.e. SBI, IFB, Somajiguda on 05.04.2008 in the form FC-GPR. The Company had submitted the relevant documents to AD Bank on 03.04.2008 for reporting to RBI. After that they had been regularly following up the matter with AD Bank. The Bank authorities had been telling them that they had not yet received any communication from RBI on this matter. O....
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....d Form FC-GPR for allotment of share for receipt of FDI on 26.03.2008 and sent it to RBI on 10.04.2012. 6. Ld. Counsel for the Appellant challenged the Impugned Order on the ground stated therein that the Company did not follow up with the AD Bank after having delivered FC-GPR for allotment of shares with the acknowledgment of receipt on 05.04.2008 with an initial, however, without any seal of State Bank of India. Ld. Counsel contended that the letter dated 04.04.2008 with regard to submission of Form FC-GPR along with 4 Annexures from the Company was received on 05.04.2008 which was duly acknowledged by the State Bank of India under an initial, bearing stamp of the Bank. In this regard, Ld. Counsel produced the Original Letter with the said date, initial and acknowledgment, during the course of final arguments. Ld. Counsel also contended that they had followed up with the Bank as is evident from their letter dated 11.04.2008 to the AD Bank with request to forward Form FC-GPR to RBI. He stated that this letter as well was duly acknowledged by the Bank on 15.04.2008. Ld. Counsel therefore pleaded to allow the Appeal. 7. Ld. Counsel for the Respondent Directorate pleaded that t....
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.... the Regional Office concerned under whose jurisdiction the Registered Office of the company operates, not later than 30 days from the date of issue of shares, a report in form FC-GPR together with the documents specified therein. Noticee 1 (Appellant Company) cannot claim that once he submitted the form FC-GPR to the authorised dealer their responsibility ceases and it is only the responsibility of the authorised dealer to ensure that it reaches Reserve Bank of India within 30 days from the date of issue of shares or convertible debentures, because the provision does not say so. Noticee 1 ought to have followed up with their authorised dealer and ensured that the requirement of reporting was fulfilled within the stipulated period, which obviously was not done. In this regard it is also important to note that the Noticee 1 had duly intimated the Regional Office of RBI vide letter dated 02.04.2008 about receipt of Rs. 120 crores from Baring Private Equity, Mauritius towards issue of preference shares. These shares were issued on the day the money was received from Baring Private Equity, Mauritius. It is not understandable as to why the Noticee 1 failed to intimate this in Form FC-GP....
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....ountant as Annexure 3 and copy of the letter intimating the receipt of funds to RBI Hyderabad as Annexure 4. On perusal of the said letter, it is seen that there is an acknowledgment dated 05.04.08. Ld. Counsel for the Appellant claimed that the seal of the AD Bank though made is not very legible. He produced the Original Letter. On perusal of the original letter, we find that the said acknowledgment has been made over the stamp of State Bank of India, Hyderabad. We also find the Form FC-GPR with the said letter as having been annexed. Next Annexure in the Appeal Paper Book is letter dated 11.04.2008 issued by the Appellant Company to the AD Bank with an acknowledgement dated 15.04.2008, though the stamp is not legible on the said letter. We find that the said letter has been written in the context of submission of Form FC-GPR enclosing KYC details of the foreign investor. The fourth Annexure is letter dated 12.02.2013 from the AD Bank to the RBI with the following observations: "In this connection we have observed that the company has received the remittance on 26.03.2008 and it claims to have submitted the FC GPR on 05.04.2008 to the authorized dealer. They have also enc....