Urgent...Experts plz help

This query is : Resolved

sakshi (Querist)
Follow

10 February 2011 Dear Experts

I have a query under fema provisions.

The company has accpeted Rs.2 lacs from foreign promoter(body corporate) as subscription money at the time of its incorporation in 2003 and issued shares fro rs. 1 lac only and had utilised the remaining Rs. 1 lac for its own use in the operations of the company and shares for Rs. 1 lac to the promoter has not been alloted till today . Now the RBI is questioning why till today the shares for Rs.1 lac has not been alloted.

Is there any way out tto this situation?

Regards
Priya Sharma

Mohit Garg

Mohit Garg (Expert)
Follow

11 February 2011 what you have shown in FIRC received from the bank?

Sudhag

Sudhag (Expert)
Follow

01 August 2011 Dear Priya,
The shares had to be allotted within 180 days from the date of receipt of the
inward remittance or by debit to the NRE/FCNR (B) account of the non-resident investor. This is contravention of FEMA because in case the shares were not allotted the amount had to be refunded to the foreign party. The company should go for compounding of offence. Please be free to write for further clarification.
Regards,
CA. Sudha G. Bhushan
Sudhag999@gmail.com

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now