Compounding due to Non Issuance of FIRC and KYC

[Sangeet Sindan]

Dear Folks, 

This is with reference to FEMA compounding due to the non-issuance of FIRC by the intermediary AD. 

Initially, the FDI amount came to an AD bank which was further remitted to the investment account managed by the investee company with another scheduled bank. The first AD Bank denied the FIRC on the ground that the mode of remittance of FDI is not allowed under their exchange house, hence, they would not be able to issue to FIRC. However, note that the FDI is completely in compliance of the FEMA (Non-Debt) Rules. 

The company wants to file the compounding application with RBI for non-filing the FC-GPR, and non-reporting, and non-issuance of FIRC. Please confirm if the same is viable or not. 

Thanks and regards, 

Sangeet

M: (+91) 8904414756|(+91) 88283-94338| 

E: sangee...@gmail.com