ADN Ltd. an Indian Listed Company in real estate segment has participated in International Competitive Bidding process and successfully selected as L1 bidder for development of Air Linkage Bridge over the Arabian Sea for

CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · June 2021
ADN Ltd. an Indian Listed Company in real estate segment has participated in International Competitive Bidding process and successfully selected as L1 bidder for development of Air Linkage Bridge over the Arabian Sea for Saudi Arabian Country. The total contract value is USD 40 Million and tenure of the contract is 3 years. As per audited financial statements for financial year 2020-21, the networth of ADN Ltd. is ₹15,000 Crore (USD 2000 Million, assume ₹75 per dollar). ADN Ltd. is willing to complete the project in Joint Venture with AL-Habibi inc. a Dubai based Company in real estate business since last 25 years by overseas investment after entering into a Joint Venture Agreement. The Statutory Auditor of the Company makes the statement that Indian Company is prohibited from making investment in a foreign entity engaged in real estate business. In this case, as a Company Secretary of the Company, answer the following: In case of such transaction (investment in joint venture), which form is required to be filed in RBI and when?

Answer & Explanation:

The reporting of Overseas Direct Investment is made in 'Form ODI' within 30 days from the date of transaction.

Topics: Foreign Exchange Management Act (FEMA)

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