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2019 (5) TMI 1573 - AT - FEMAStay petition - whether the appellants have been able to make out a prima facie case in their favour? - claim taken up with RBI for compounding - received inward foreign remittances from M/s. Infinity Financial Limited, Mauritius but failed to either intimate the Reserve Bank of India within 30 days of the inward remittance, or failed to issue shares to the foreign investors within the stipulated 180 days of the inward remittances - HELD THAT:- In this case, the appellants have not denied that they did not inform the RBI within the stipulated period as mandated by RBI, nor did they issue shares to the foreign investor within 180 days as again mandated by the RBI. Instead the money was diverted to buy properties and land in their name which was not the purpose of the inward remittance. In fact, in the stay petition the appellant at para 5 have accepted their liability which was not discharged. Their claim that they had taken up with RBI for compounding also does not strengthen their argument in as much as the RBI had returned their compounding application vide their letter dated 22.08.2012 but the appellants never considered filing an appeal or representation against the said letter of RBI. They, therefore, way back in 2012 had accepted the non-compounding by the RBI. They have pleaded financial hardship but have not submitted any document in support of the same. Thus find that the appellants have been able to make a prima facie case in their favour and hence the stay petition is rejected. Since their financial hardship plea is not backed by any documentary evidence, the same cannot be accepted. However, feel that the interests of justice would be served if the appellants are directed to predeposit 50% of the penalty levied within a period of two months from today.
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