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

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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.