WEEKLY EXERCISE

March 2023

Exercises on Drafting responses to notices from

statutory authorities AND How to respond to various
kinds of notices received by developers under
RERA

Week Duration: 15/03/2023 to 22/03/2023

Weekly Exercise
Drafting responses to notices from statutory authorities
AND How to respond to various kinds of notices received
by developers under RERA

Learning Objectives:

●
To learn how to respond to notices from statutory authorities;

● To learn how to draft a response to various kinds of notices received by

developers under RERA

Reference Material:

Module name Module details

Module 25 : PPT ● 6. How to draft an effective response to a

Bootcamp February 2023 show-cause notice?
● 6.1 Reply to Statutory Notice

● PPT on Drafting responses to notices from

statutory authorities AND How to respond to
various kinds of notices received by developers
under RERA

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Weekly Exercise
Drafting responses to notices from statutory authorities
AND How to respond to various kinds of notices received
by developers under RERA

Exercise 1:

You are the head of the legal department at MFBL Bank Ltd. Your bank is also an
Authorised Dealer (AD) as per Section 10 of the Foreign Exchange Management
Act, 1999. You have been served a show-cause notice on 07.03.2023 by the
Reserve Bank of India, alleging that you have not complied with the mandatory
requirements of the RBI’s Master Direction on External Commercial Borrowings,
Trade Credits and Structured Obligations (‘Master Directions’).

The contents of the notice are as under:

BY HAND DELIVERY/BY FAX

BY REGD. POST

RESERVE BANK OF INDIA

6, Sansad Marg, New Delhi - 110002
SHOW-CAUSE NOTICE
[Under Section 11(3), FEMA, 1999]
Dated: 07/03/2023
No. ABCD/RBI/2023
THE BRANCH MANAGER,
MFBL BANK LTD.,
Block C, Connaught Place
New Delhi - 110001
Subject: Show-Cause Notice under Section 11(3) of Foreign
Exchange Management Act (‘FEMA’), 1999 relating to
violation of Master Direction - External Commercial
Borrowings, Trade Credits and Structured Obligations
[No. 5/2018-19] (‘Master Directions’).

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Weekly Exercise
Drafting responses to notices from statutory authorities
AND How to respond to various kinds of notices received
by developers under RERA

Whereas, MFBL Bank Ltd., having office at Block C, Connaught Place, New
Delhi - 110001, is a banking company governed by the Banking Regulation
Act, 1949.

After a perusal of the records submitted and filed by the MFBL Bank Ltd. as
mandated by the Master Direction on External Commercial Borrowings,
Trade Credits and Structured Obligations (‘Master Directions’) as revised
by the Reserve Bank of India from time to time, the following discrepancies
have been found:
​
​ ECB-2 return for reporting actual transactions of External
Commercial Borrowings required to be reported on a monthly
basis has not been filed for the months of November 2022 to
February 2023.
​
That aforesaid circumstances constitute a violation of the Master Directions,
and indicate a deliberate and intentional action on the part of MFBL Bank
Ltd.

And that you, being the Branch Manager, are hereby called upon to show
cause as to why a late submission fee under Para 6.4 of the Master
Directions and under Section 11(3) of FEMA should not be imposed upon you.

You are required to make written submissions, if any, within 30 days of the
receipt of this notice, failing which a late submission fee of INR 50000 will be
payable by you.
Yours sincerely,

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Weekly Exercise
Drafting responses to notices from statutory authorities
AND How to respond to various kinds of notices received
by developers under RERA

Authorised Officer
RBI, New Delhi

Assuming this show-cause notice has been served on you, and keeping in mind the
allegations levelled and the applicable law, draft an effective reply in response to the
provided show-cause notice. You are free to create hypothetical facts and evidence
for the purposes of defending the allegations made against you. Remember to
include the following elements:

i. Reply within the time period mentioned.

ii. Provide a specific subject.

iii. Describe the factual situation as per your perspective in detail.

iv. Request an oral hearing.

v. Annex relevant documents and evidence (prepare a list).

Exercise 2:

Tulsiani Constructions and Developers Ltd, a private limited company registered

under the Companies Act, is building a project, ‘Easy Homes’, in Sector 35, Sohna,
Haryana. The project is registered under the Real Estate (Registration and
Development) Act, 2016 with the Real Estate Regulatory Authority.

They have been served with a show-cause notice, alleging violation of the
mandatory requirements of the Act, and also the Haryana Real Estate (Regulation)
Rules,2017.

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Weekly Exercise
Drafting responses to notices from statutory authorities
AND How to respond to various kinds of notices received
by developers under RERA

[For the purpose of this exercise assume that the notice has been sent on
07.03.2023 and you have to give the requisite reply by 31.03.2023.]

You have been approached by the Managing Director of Tusliani Constructions and
Developers Ltd to draft a suitable response to the notice. You are free to create
hypothetical facts and evidence for the purposes of defending the allegations made
against you, if you feel necessary. Remember to include the following elements:

vi. Reply within the time period mentioned.

vii. Provide a specific subject.

viii. Describe the factual situation as per your perspective in detail.

ix. Request an oral hearing/accept the offer for oral hearing

x. Annex relevant documents and evidence, including a compliance report

(prepare a list).

[10 marks]

Now get a chance to be creative. Try out our Linkedin exercise and expand
your professional reach!

Write a note on what are the pointers that you need to keep in mind while drafting
responses to notices from statutory authorities. Post the same on your LinkedIn and
do not forget to tag LawSikho, Ramanuj Mukherjee, Abhyuday Agarwal, Komal
Shah, Yash Vijayvargiya, Abhipsa Anamika and Sneha Yadav for a wider reach.

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Weekly Exercise
Drafting responses to notices from statutory authorities
AND How to respond to various kinds of notices received
by developers under RERA

NOTE:

You can find the class schedule link : Class Schedule

Please reach out to your course anchor, Sneha Yadav, for your course-related
concerns at sneha.yadav@lawsikho.in . You can also book a calendly session
through this link (https://calendly.com/sneha-yadav-10/15min).

For assignment related queries you can reach out to your evaluator, Abhishek
Charan at abhishek.c@lawsikho.in . You can also book a calendly session through
this link http://calendy.com/abhishek-c95

To connect with the mentorship team, drop a mail to mentorships@lawsikho.in.

For Support/ Technical/ Evaluation concerns, write to support@lawsikho.in with a

screenshot.

Do not message the anchors personally unless you require help in coping with the
course or have feedback on experts or content.

To get started with your freelance journey or any related support, reach to
nlfreelancing@lawsikho.in

Here are the escalation points if you are dissatisfied with our services, especially
content and classes.

● Sneha Yadav, Course Anchor (https://calendly.com/sneha-yadav-10/15min)

● Yash Vijayvargiya, Content Head (yash@lawsikho.in,

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Weekly Exercise
Drafting responses to notices from statutory authorities
AND How to respond to various kinds of notices received
by developers under RERA

https://calendly.com/yashls/escalations-and-feedback)

● Abhyuday Agarwal (abhyuday@lawsikho.in)

● Ramanuj Mukherjee (ramanuj@ipleaders.in)

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