External commercial borrowing - fema compliances


This query is : Resolved 

(Querist)
07 March 2012 Our client had taken loan for capital exp. from its ultimate holding co. from abroad however had not complied with the provisions of FEMA for ECB. The client applied for compounding to RBI & the same was permitted. However before order of compounding was passed, the ownership of the client transferred to another co. in abroad.

Now our questions are:

1. Whether this amount can be transferred to the succeeding owner? If yes, what are the provisions of RBI

2. If not then can we write it off as capital receipt & what are the provisions and procedure for the same?

Please advise.

10 February 2013 Compounding needs to be paid by Indian company and change of ownership should not have any impact on the compounding.


Anuj
Femaquery@gmail.com


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