FIPB Approval

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A foriegn unit had obtained a FIPB approval in 2006 for investing in a Greenfield Project in India upto a certain monetary unit. However over the years the project cost has esalated (the project still being under construction and production yet to commence) and the foreign partner has to invest more in the share capital of the Indian unit than that what was initially approved in 2006.

However all remittances were properly routed through authorized dealers and timely FC-GPR / Declarations were submitted to RBI.

As such are there any non compliances on the part of the Indian unit, and what would be the remedial measures.

Replies (1)

Dear Dipanjan,

Why there is non-compliance you forsee.I don't think so.The only thing with given facts which comes into my mind is that you have to also report the FIPB.Am sure when the FIPB had given the approval as such they(FIPB) must have mentioned certain amount towards inflow wrt Foreign Collaborators which they(Foreign Collaborators ) are coming with.Since here, there is increase therfore you have to report to the FIPB towards such incerase.

Thanks &Regards


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