documents and process the
necessary transactions in relation to the GDR issue. The
resolution further authorized EURAM Bank to use the funds so
deposited ... GDR was issued
amounting to US $ 13.24 million. Further, Vintage was the sole
subscriber to the GDR issue on the basis of a loan taken
extraordinary events like ESOP issue,
buyback of shares and fall in GDR issue. It was submitted that
above extraordinary cost, if ignored, then the company ... submitted that the assessee has incurred these expenses on account
of GDR issue, buyback of shares, restructuring options like ESOP
etc. The total expenses
GDR of 4.65 million was issued amounting to
US $ 9.99 million. Further, Clifford was the sole subscriber to the
GDR issue on the basis ... Penalty Orders
Sr. Name of the Date of GDR Subscriber Combined Penalty Date
No. GDR issuer Issue size of the
Company (miilion order
Company, its
Directors and connected entities to ensure that the
GDR issue was successfully subscribed to. Hiran had
issued 15,38,462 GDRs amounting ... subscribing the GDRs
of Hiran. It was alleged that the GDR issue would not
5
have been subscribed had Hiran not given such
security towards
argued that in respect of the
GDR issue, the expenses were incurred for the issue of GDR are covered ... vetting of the documents for public issue and professional charges for the issue of
GDR, BSE approval for investment for offer documents booked under expenses
Company, its Directors and connected entities to ensure
that the GDR issue was successfully subscribed to Hiran had
issued 15,38,462 GDRs amounting ... subscribing the GDRs of Hiran. It was alleged that
the GDR issue would not have been subscribed had Hiran not
given such security towards
executed a fraudulent scheme of issuance of GDR
to the detriment of the Indian investors. Two GDR issues
were floated on 27th July ... GDR. On
the basis of these agreements, it effectively resulted in the
Company itself acquiring the subscription of its own GDR
issue. The loans taken
million. Certain complaints
were received regarding diversion of monies raised through
GDR issues and, based on a preliminary enquiry, SEBI issued
an ex-parte ... devised a scheme under which the
appellant company made two GDR issues, the proceeds of
which were diverted by them and subsequently involved in
covering
penalty has been levied on the disallowance of expenditure on GDR issue
to the tune of Rs.3,00,000/-. Vide show-cause notice dated ... penalty should not be levied on the disallowance
of expenditure on GDR issue. The assessee replied that it has neither concealed any
particulars of income
herein, that Merrill Lynch had played a significant role in the GDR issue by way of preparation of the prospectus, organising road shows for publicity ... timing of the issue. The total expense incurred on the GDR issue was Rs. 5,38,79,199. The Assistant Commissioner was of the view
