9911796707
TMI Blog2013 (10) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... RBI submits that the impugned communication dated 17 October 2012 ought to have been challenged at the relevant time and there has been delay on the part of the petitioners in waiting till the order of adjudication was passed on 7 August 2013 by Special Director, Enforcement. The petitioners application for compounding was rejected by the impugned communication dated 17 October 2012 which reads as under:- "Please refer to your compounding application dated August 31, 2012 for compounding the contravention of Regulation 6(4) of Notification No.FEMA/120/RB2000 dated July 7, 2004 with regard to extension of corporate guarantee on behalf of the overseas JV in Cyprus. 2. In this connection, we advise that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the contravention and to determine as to whether the contravention is of a nature such that it can be compounded under Section 15 of the Foreign Exchange Management Act, 1999." 4. Learned counsel for the petitioner has invited our attention to the fact that before the adjudicating authority the petitioners had pointed out that the contravention was of a technical nature as the petitioner was required to obtain approval from the Government for the petitioner undertaking financial commitment in JV/WOS without equity contribution. Para 5.17 of the impugned order dated 7 August 2013 (page 409) reads as under:- 5.17. The noticees have relied on the RBI's A.P. (DIR Series) No.96 dated March 28, 2012 which inter alia, permitted I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Proceedings) Rules, 2000, which reads as under:- "11. No contravention shall be compounded if an appeal has been filed under Section 17 or 19 of the Act." Learned Senior counsel for the RBI contends that once the adjudication order is passed an application for compounding may not be maintainable. In view of the above, if the interim stay of the order dated 7 August 2013 is not granted and if the petitioner does not file an Appeal under Section 17/19 of the Act, the petitioners will loose its right of appeal. If the petitioners file an appeal they will loose the right to have their application for compounding considered. In view of the above, till the respondents file the affidavit in reply and the matter is finally heard, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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