Sum paid for compounding of FEMA violations to be refunded via NEFT if compounding couldn't be proceeded with

Posted Date : 14-Aug-2013 , 11:31:17 am | Posted By CASANSAAR print

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FOREIGN EXCHANGE (COMPOUNDING PROCEEDINGS) RULES, 2000 - COMPOUNDING OF CONTRAVENTIONS UNDER FEMA, 1999

A.P. (DIR SERIES 2013-14) CIRCULAR NO. 20, DATED 12-8-2013

Attention of Authorised Dealers (ADs) and their constituents is invited to paragraph 7.2 of A.P. (DIR Series) Circular No. 56 dated June 28, 2010wherein they were advised to ensure that the applications for compounding are submitted only after the transactions are complete and all the requisite approvals are in place. Of late, we have been receiving a number of applications for compounding of contraventions of FEMA, 1999 which are submitted without obtaining proper approvals or permission from the concerned authorities leading to avoidable correspondence with the applicants and also return of applications. In case the application has to be returned for this reason or any other reason, the application fees of Rs.5000/- received along with the application fees is also returned.

2. To expedite the refund of compounding fees in such cases, it has been decided to credit the same to the applicant's account through NEFT. The applicants are advised to furnish their mandate and details of their bank account as per ANNEX along with the application in the prescribed format and other documents required to be submitted in terms of the instructions contained in A.P. (DIR Series)Circular Nos. 56 and 57 dated June 28, 2010 and December 13, 2011 respectively.

3. Further, the Annexes relating to Foreign Direct Investment, External Commercial Borrowings, Overseas Direct Investment and Branch Office / Liaison Office, as given in A.P.(Dir Series) Circular No.57 dated December 13, 2011, have also been modified to include the details of income-tax PAN and the activity as per NIC codes – 1987. It may please be noted that the application will be treated as incomplete without these details.

4. The applicants may also note to bring to the notice of the compounding authority change, if any, in the address/contact details of the applicant during the pendency of the compounding application with Reserve Bank.

5. Authorised Dealers may bring the contents of this circular to the notice of their constituents and customers concerned.

6. The directions contained in this circular have been issued under sections 10 (4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999).

ANNEX

ELECTRONIC CLEARING SERVICE (ECS)

MANDATE FORM

1. Name of the Party (Beneficiary) -

2. Particulars of the Bank Account -

A.		Name of the Bank
B.		Name of the Branch -
		Address:
		Telephone No:
C.		9 Digit MICR Code Number:
		(as appearing on the cheque issued by the Bank)
D.		IFSC Code
E.		Type of Account : SAVINGS / CURRENT
F.		Account No. :
		(as appearing on the cheque book issued by the Bank)

(Please attaché photocopy of a blank cheque for verification of the bank account details)

I/We hereby declare that the particulars given above are correct and complete. If the transaction is delayed or not effected at all for reasons of incomplete or incorrect information, I/We would not hold the user institution responsible.

Date :	Signature of the Authorised Signatory
	(Name of the Authorised Signatory)
Place :	Official Stamp

ANNEX FDI

DETAILS TO BE FURNISHED ALONG WITH APPLICATION FOR COMPOUNDING OF CONTRAVENTION RELATING TO FOREIGN DIRECT INVESTMENT IN INDIA

♦		Name of the applicant
♦		Date of incorporation
♦		Income-tax PAN
♦		Nature of activities under taken (Please give NIC code - 1987)
♦		Brief particulars about the foreign investor
♦		Details of foreign inward remittances received by Applicant Company from date of incorporation till date

TABLE A

Sl. No.	Name of Remitter	Total Amount (INR)	Date of Receipt	Reported to RBI on*	Delay if any

	Total

* date of reporting to RBI and not AD

TABLE B

Name of Investor	Date of allotment of shares	Number of shares allotted	Amount for which shares allotted	Date of reporting to RBI*	Delay if any

	Total

* date of reporting to RBI and not AD

TABLE C

Sl. No.	Name of Remitter	Total Amount (INR)	Date of Receipt	Excess share application money	Date of refund of share application money	Amount in forex	RBI approval letter and date

	Total

TABLE D

Authorised Capital

Sl. No.	Date	Authorised Capital	With effect from	Date of Board meeting	Date of filing with ROC

A= B+C

Please give supporting documents

Table A- Copies of FIRC with date stamp of receipt at RBI

Table B- Copies of FCGPR with date stamp of receipt at RBI

Table C - letter seeking refund/ allotment of shares- approval letter from RBI A2 form

♦		Copies of Balance Sheet during the period of receipt of share application money
♦		and allotment of shares
♦		Nature of contravention and reasons for the contravention

ANNEX ECB

DETAILS TO BE FURNISHED ALONG WITH APPLICATION FOR COMPOUNDING OF
CONTRAVENTION RELATING TO EXTERNAL COMMERCIAL BORROWING

♦

Name of the applicant

♦

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