Archives

Party cannot take two remedies simultaneously against one and same order
FEMA
CA. Kapil Mittal

Party cannot take two remedies simultaneously against one and same order

The Appellant filed an appeal before the SEFEMA against the impugned order wherein a penalty of INR 50 Lakhs was imposed on the Appellant for violation of provisions of FEMA. After filing appeal, the Appellant kept on seeking adjournment from the Tribunal and filed the writ Petitioner before the High Court of Calcutta. While filing writ petition, the appellant suppressed the fact of pendency of appeal. Hon’ble High Court rejected the contention of the Appellant and upheld the impugned order. The High Court mentioned The impugned order is appealable.  The petitioner has chosen not to prefer an appeal. The Petitioner chose to file the writ petition.

Read More »
Penalty is imposed for delayed reporting of FDI as amended provisions maintained the reporting requirement
Foreign Direct investment
CA. Kapil Mittal

Penalty is imposed for delayed reporting of FDI as amended provisions maintained the reporting requirement

The Appellant, an Indian Company, received FDI of INR 204 Crores through automatic approval route. The Company was required to file the Advance Remittance Form (ARF) within 30 days of receipt of FDI.  The Company delayed in reporting of FDI to RBI by 24 days. Therefore, the penalty was imposed on the company of INR 20 Crores and on the directors of INR 5 Crores.

Read More »
Section 8 of FEMA 1999 provide for an exception to repatriate and realise the export proceeds in case of genuine default by the buyer
FEMA
CA. Kapil Mittal

Section 8 of FEMA 1999 provide for an exception to repatriate and realise the export proceeds in case of genuine default by the buyer

The Appellant exported 12 shipments and realised export proceeds for only 1 shipment out of 12 shipments. The Special Director, Enforcement Directorate imposed a penalty of INR 70 lakhs and INR 20 Lakhs on the appellant for contravention of Section 7 & 8 of FEMA, 1999. The appellant took all the reasonable steps to realise the export proceeds such as loding a complaint with Export Credit Guarantee Corporation (ECGC), Indian High Commission at Singapore, M/s Allen Gledhill Singapore the debt collecting agency and M/s Omega Alliance, Mumbai for debt collection. However, still could not realise export proceeds.

Read More »
Foreign Portfolio Investment (FPI) in India 
Foreign Direct investment
CA. Kapil Mittal

Foreign Portfolio Investment (FPI) in India 

Similar to Foreign Direct Investment, Foreign Portfolio Investment (FPI) is a most explored way of investment in India. Foreign Portfolio Investment allows an investor to invest in multiple securities in foreign country such as shares, bonds, fixed deposits etc. 

Unlike FDI, investment in FPI is done for the purpose of getting return and not for the purpose of control. FPI is controlled in India through Security and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014.

Read More »
Foreign Direct Investment (FDI) Policy in Broadcasting & Print Media
Foreign Direct investment
CA. Kapil Mittal

Foreign Direct Investment (FDI) Policy in Broadcasting & Print Media

FDI for TV channel up-linking/down-linking shall be subject to compliance with relevant Ministry’s policies.

The foreign investment (FI) in companies offering aforementioned services subject to Ministry’s specified regulations and conditions specified from time to time.

The foreign investment (FI) limit in companies engaged in the aforestated activities shall include, in addition to FDI, Foreign Portfolio Investors (FPIs), Qualified Foreign Investors(QFIs),  Non-Resident Indians (NRIs), Foreign Currency Convertible Bonds (FCCBs), American Depository Receipts (ADRs), Global Depository Receipts (GDRs) and convertible preference shares held by foreign entities. 

Foreign investment in broadcasting carriage services subject to specified security conditions/terms.

Read More »
Foreign Direct Investment (FDI) Policy in Civil Aviation
Foreign Direct investment
CA. Kapil Mittal

Foreign Direct Investment (FDI) Policy in Civil Aviation

India’s civil aviation sector has undergone significant transformation in recent years, fueled by liberalization measures and strategic policy interventions. India’s air travel industry has changed a lot lately because of new rules and government decisions. One big part of this change is how foreign companies can invest in Indian airlines. This policy is really important for how the industry grows. 

Read More »
Categories

V J M & Associates LLP

Contact Us

X