FEMA - Borrwoing in foreign currency - URGENT ANSWER REQD

This query is : Resolved

Guest

Guest (Querist)

11 September 2008 A Company obtained a loan of USD 500k from one of its group of companies in UK in contravention of the notification Notification No.FEMA 3 /2000-RB dated 3rd May 2000. The Company approached RBI to condone this. Would u pls help me in knowing the max penalty/fine,the company will face in this matter.

THIS WAS URGENT FOR ME

Guest

Guest (Querist)

11 September 2008 PLS answer it fast

Guest

Guest (Querist)

11 September 2008 pls fast

Ravikumar.G

Ravikumar.G (Expert)
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25 September 2008 Consequences of contravention of ACT etc. (Sec 13)
Amount of penalty:
1) upto 3 times the sum involved in the contravention.
2) Upto Rs.2L - if the amount involved in contravention is not quantifiable
3) Upto Rs.5,000/- per day - where contravention is continuing.

Ravikumar.G

Ravikumar.G (Expert)
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25 September 2008 Penalty shall become payable only upon adjudication u/s14.

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