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TMI BlogDepositsnot to be invited without issuing an advertisement.X X X X Extracts X X X X X X X X Extracts X X X X ..... les made under sub-section (1), [3][* * *] (b) an advertisement,[4] including therein a statement showing the financial position of the company, has been issued by the company in such form and in such manner as may be prescribed [5][, and] [6][ (c) the company is not in default in the repayment of any deposit or part thereof and any interest thereupon in accordance with the terms and conditions of such deposit.] [7][(3) (a) Every deposit accepted by a company at any time before the commencement of the Companies (Amendment) Act, 1974 (14 of 1974) in accordance with the directions made by the Reserve Bank of India under Chapter IIIB of the Reserve Bank of India Act, 1934 (2 of 1934), shall, unless renewed in accordance with clause (b), be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Central Government may, on sufficient cause being shown by the company, allow. (5) Where a company omits or fails to make repayment of a deposit in accordance with the provisions of clause (c) of sub-section (3), or in the case of a deposit referred to in sub-section (4), within the time specified in that sub-section, (a) the company shall be punishable with fine which shall not be less than twice the amount in relation to which the repayment of the deposit has not been made, and out of the fine, if realised, an amount equal to the amount in relation to which the repayment of deposit has not been made, shall be paid by the Court, trying the offence, to the person to whom repayment of the deposit was to be made, and on such payment, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (b) of sub-section (2),[12] nothing in this section shall apply to such classes of financial companies as the Central Government may, after consultation with the Reserve Bank of India, specify in this behalf.[13] [14][(8) [15]The Central Government may, if it considers it necessary for avoiding any hardship or for any other just and sufficient reason, by order, issued either prospectively or retrospectively from a date not earlier than the commencement of the Companies (Amendment) Act, 1974 (41 of 1974), grant extension of time to a company or class of companies to comply with, or exempt any company or class of companies from, all or any of the provisions of this section[16] either generally or for any specified period subject to such co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of money with, and includes any amount borrowed by, a company but shall not include such categories of amount as may be prescribed in consultation with the Reserve Bank of India. --------------------------------- Notes:- [1] Inserted by Companies (Amendment) Act, 1974, 41 of 1974, section 7, w.e.f. 1-2-1975. [2] See Companies (Acceptance of Deposits) Rules, 1975. [3] The word "and" omitted by the Companies (Amendment) Act, 1996, w.e.f. 1-3-1997. [4] See The Non-Banking Financial Companies and Miscellaneous Non-Banking Companies (Advertisement) Rules, 1977. [5] Inserted by the Companies (Amendment) Act, 1996, w.e.f. 1-3-1997. [6] Inserted by the Companies (Amendment) Act, 1996, w.e.f. 1-3-1997. [7] Substituted by the Companies (Am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied. [19] Application to be made in Form 4 of the Company Law Board Regulations, 1991. [20] Fees prescribed is Rs. 50. Prescribed Form is Form No. 04 of Company Law Board Regulations. On notification of the commencement of the amendment, power will be transferred to the National Company Law Tribunal. [21] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002. w.e.f. a date yet to be notified. [22] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002. w.e.f. a date yet to be notified. [23] Substituted for "not less than rupees fifty" by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000. [24] Inserted by the Companies (Amendment) Act, 1999, w.r.e.f. 31-10-1998. [25] See rul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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