- We're soon to be approaching 6 months to monetization for those who bought in in December 2023 --- The money has been "there" for months?
You are talking about 2 different inward remittances here that we attempted Karlacorn -- The first one was from an investment group - they offered us quite less value per token, in cents -- We still went for it as we needed money. However that did not workout as we discovered that the money had Fatca issues. However, god helped us, as we offered the same 20% of vertical to a large bank for a whopping $27/token. We might have starved for 10 months but I should write to you this wait gave us more than 60 times in value.
The Second money that we are pursuing now is our own transaction money and not any equity -- The quantum size is $52.59 Million from two transaction values and dollar for dollar match from a private equity firm. We are clearing multiple regulatory matters on this and I should write to you we are even quicker than many others -- We crossed 2 stages and the final one, we just were able to close the liaison advocacy fee a day before. I am hopeful we will have the clearance in the next 10 days.
Some clearances take 9 months even -- I should write to you, we are lucky here and this progress would not have been possible without deep liaison. Not to blame the government as there has been tons of abuse exploiting the system. Plus there is a lot of terrorist funds moving across and also because of elections and war, there is an additional eye of scrutiny on the money.
- Is it near a time wherein the regulatory agencies in question are liable to some extent?
No, we cannot, Rather I should write they are doing their job -- And in fact our case turned much quicker.
- Which "agencies" are involved? Indian Income Tax Department (Tax Clearance), Reserve Bank of India - FEMA Clearance (Foreign Exchange Management Act), Enforcement Directorate, US FedWire, and US Federal IRS (Foreign Tax Credit & FATCA compliance)
- I'm sure these agencies would have to assume there is a negative impact to business. ...for both receiving parties and to "those" who initiated the funds?They just do their job Karlacorn - Their responsibility is to ensure that funds are clean, taxes paid on both ends, and not have any regulatory blocks...
- Mitigating actions being taken? Time to reach closure and payout?yes karlacorn -- we discovered one enforcement block from 2007-11 times is pending. We were carrying Tax Preparation Business, outsourcing US Tax Returns to our Indian Captive Entity and in this process, to manage operations and to purchase 100% equity of the Indian entity we wired $4.24 Million through regular banking channels. While Remittance was all appropriate, there is an obligation that we should submit Forms addressing the purpose of remittance to RBI (Reserve Bank of India) within 30 days of remittance receipt. While we did many times, our banking department failed to file a few forms and the RBI prompted action through the Enforcement Directorate. Unfortunately it went unnoticed as this business was closed in 2011 as due to Lehman Brothers effect, IRS then restrained that we should not process US tax returns outside of the United States. (now it is allowed with the preparers following IRS qualifications). And within the US, it was cost prohibitive. Penalty for non-filing is severe and we appealed that non-filing was unintentional ignorance and that we as founders cannot be punished so harshly for negligence of the staff. After years of negotiation, they finally levied a simple penalty determination. We paid out this and now the file clearance is pending. Due to election time, the entire enforcement team is on election duty across the country (as a lot of cash flows across into multiple constituencies and the department monitors this 24x7) and to push the file up for clearance we have appointed a liaison contact and we paid out this advocacy fee yesterday. We are promised within these 10 days the file will push for clearance and this will see the remittance credit we are waiting for.
- We've been repeatedly told of "issues" without understanding the details and mitigations? - We're told to be patient without understanding what we're being patient for?
These issues cannot be spoken on the hub as they are very sensitive Karlacorn as we cannot discuss government issues in open public as we never know who is supporting us and who could be harming. For the limitations of not being able to discuss these online and in public, I am forced to request to be patient without narrating the details.
However, we paid the penalty money and the file should move now into clearance. I do not know exactly how much time but the blocks are resolved. The liaison contact told us it should clear within 10 days. I am just hopeful we will have the clearance.
The other side, we progressed and signed our agreement with one very large European Banking Group that has undertaken 20% of each of our verticals to be distributed and another 4% underwritten. We also progressed in successfully negotiating 20% equity in their token aggregating platform and this understanding is for a consideration of $18 Million Euros (120,000 Tokens in 6 verticals @ 25 Euros per token). Any differential in valuation of verticals (other than gold and rice) to be paid out by us within the time limitations.
We also readied the token platform for trading and activated INR to USD conversion for Indians to begin trading ...
I believe in pulling the business into operational mode and despite capital blocks we are able to reach this stage as this trading could mean huge cash freedom for all of us .....
Dear Karlacorn, please let me know if I should answer any other points and I will in all transparency....
Sincerely,
Laxmi Prasad
