Thereafter Shri Muralilal Mittal, Authorized representative of the said companies, duly authorized by the Board of Directors vide resolutions dated 11.06.2008, deposed u/s 37 of the FEMA, 1999. In his statements dated 15.06.2009 and 27.05.2011 recorded under section 37 of the FEMA, 1999 he inter alia, stated that the SPV by name Red Lebondal Ltd., Cyprus (herein after referred to as “RLLC”) was formed for exploring opportunities outside India in steel and textile sectors, however, the JV did not take up any business activities except having made certain investments in M/s. Welspun Power and Steel Ltd. which is a domestic group company. He further stated that Welspun Group had (herein after referred to as “WPSL”) given guarantees to the concerned banks for advancing loan outside India for the purpose of enabling the joint venture to make investment in Welspun Power and Steel Ltd. and that out of the total amount of USD 52 million, an amount of USD 50.05 Mn was remitted to India as FDI received from RLLC, M/s. Welspun Power and Steel Ltd. had allotted 19,711,184 unsecured Fully Convertible Debentures of Rs. 100 each carrying annual interest rate of 8%. Shri Muralilal Mittal further stated that Welspun Group has not made any remittance for investment in RLLC and under the law of Cyprus Shri B.K. Goenka, Chairman of Welspun Group, M/s. Welspun Gujrat Stahl Rohern Ltd. (herein after referred to as “WGSRL”), M/s. Welspun Wintex Ltd. (herein after referred to as “WWL”) and M/s. Krishiraj Trading Ltd. (herein after referred to as “KTL”) were holding shares in RLLC and are therefore owners of the company jointly with Intech Metal SA. He further stated that the shares of RLLC have already been allotted to the respective shareholders and he submitted copy of a certificate from the
