Recent rbi / fema compliance

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pralok (Querist)
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05 February 2016 Please look into this query. Your responses would be helpful..

A company being a Hospital was initially managed by a group but eventually, as they did not manage it properly, it came back to the original promoters. The promoters were in a situation such that they had mobilize about 5crores to get the company back on track, through their own funds and through banks. One of the promoters, is a Foreign citizen and has invested about 2.5 cr to take over the management of the company. This money has been used for Renovation of the hospital.
The question is that the company has issued only some amount of shares to this foreign citizen and the other amount that he has invested has been utilized for servicing a loan and renovation purposes. The issue is, should this transaction be reported to RBI or as per FEMA , are there any repercussions? Also, is there any repercussions if the amount invested in this case is repatriable ?
There is a recent news report in Hindu saying that not reporting this kind of share issue will involve hefty Fines and penalties.