TMI Blog2020 (8) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... tioned in communication dated 14.08.2019 by Enforcement Directorate. The petitioner refutes this. We cannot help noticing that the corporate guarantee and the loans have prima facie been taken with the prior permission of RBI. It would hardly be appropriate for the RBI to now let the petitioner go in default and dishonour its corporate guarantee because some investigation proceedings are pending by law enforcement agencies which appears to have been pending since 2015. In fact, as noted above while these proceedings were pending as late as in 2018, RBI has given permission to the petitioner. The petitioner has made a prima facie case. Necessary permission for transmission of 90 million USD is not granted, as sought for, it is manifest th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2020 CM No.12827/2020 1. This writ petition is filed seeking the following relief: A. Issue a writ, order or direction including a writ in the nature of Mandamus, directing Respondent to permit Petitioner to make additional commitments and payments of USD 300 Million to its wholly owned subsidiary namely Jindal Steel and Power (Mauritius) Limited by way of equity subscription or loan or corporate guarantee or bank guarantee or through other permitted mode from Indian Bank for meeting its debt obligations; 2. The case of the petitioner is that it has wholly owned subsidiaries (WOS) including Jindal Steel Power (Mauritius) Ltd. (JSPML), Sky High Overseas Limited and Jindal Steel Bolivia S.A. The petitioner states to have made o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have heard learned counsel for the parties. Learned senior counsel for the petitioner has strongly urged that the entire transaction, namely, the loans of 279.5 million dollars and the corporate guarantee of USD 865 million have been given by the petitioner after taking due permission from RBI. It is also urged that since 2015 there has been no fresh inquiry under FEMA or PMLA initiated by the law enforcement agencies. The old inquiries which are of insignificant amounts continue to be languishing. Despite pendency of those inquiries it is pleaded that several permissions have been given by RBI earlier. 6. Now, for no reason merely on the saying of the concerned Enforcement Directorate, permission is being refused to the petitioner. It i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rect investment in a Joint Venture or Wholly Owned Subsidiary outside India. (2) (i) The total financial commitment of the Indian party in Joint Ventures/Wholly Owned Subsidiaries shall not exceed 100% of the net worth of the Indian Party as on the date of the last audited balance sheet; Explanation : - For the purpose of the limit of 100% of the net worth the following shall be reckoned, namely: (a) cash remittance by market purchase and /or equivalent rupee investments in case of Nepal and Bhutan (b) capitalisation of export proceeds and other dues and entitlements as mentioned in Regulation 11; (c) fifty per cent of the value of guarantees issued by the Indian party to or on behalf of the joint venture company or wholly o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nding by the Law Enforcement agencies. Regulation 9 does not provide any such stipulation. Hence, prima facie the petitioner was correct in having approached RBI under Regulation 9. 10. I also cannot help noticing that the petitioner has filed a chart showing that permissions have been given by RBI on 24.03.2015, 20.04.2018, 14.09.2018 and 10.12.2018. The corporate guarantee, hence, for 865 million USD has been given after prior permission of RBI. These permissions have been given as late as in 2018. Learned senior counsel for the petitioner has vehemently argued that no FEMA or any other investigation has been initiated by the law enforcement agencies after 2015. 11. Learned counsel for RBI has pointed out to some inquiry initiated r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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