'Lalji' is a Singapore based company having several business units all over the world. It has a unit for manufacturing computer chips with its…

In terms of section Section 2(w) of the Foreign Exchange Management Act, 1999, Lalji being a Singapore based company would be person resident outside India. Section 2 (u) defines 'person' under clause (viii) thereof, as person would include any agency, office or branch owned or controlled by such person. The term such person appears to refer to a person who is included in clause (i) to (vi) . Accordingly, Lalji unit in Pune, being a branch of a company would be a 'person'. Section 2 (v) defines a person resident in India. Under clause (iii) thereof person resident in India would include an office, branch or agency in India owned or controlled by a person resident outside India. Lalji's unit in Pune is owned or controlled by a person resident outside India, and hence it, would be a 'person resident in India.' However, Dubai Branch though not owned but is controlled by the Computer chips unit in Pune which is a person resident in India. Hence, the Dubai Branch is a person resident in India.