As per Section 74 of Companies Act, 2013, any deposit accepted before commencement of Companies Act, 2013 needs to be repaid/ refunded on or before 31st March, 2015
Penalty if non Compliance of Section 74, Min 1 Crore and Maximum 10 Crores.
Now, the question is whether Loans taken from Directors, or their relatives or shareholders are actually termed as Deposits or not as per Deposit Rules 2014. Practically, it is not possible for companies to repay the amounts taken in lakhs to repay the amount in just 1 year's time. The loan taken by the Companies especially by Private Limited Companies have been invested further in the Assets of the Company and to repay that amount is difficult for the entrepreneurs. Their business operations may suffer losses and disturbances.
It's time for Professionals to guide their clients/ business people to take right steps further;
1. Not to file Form DPT 4 and not to repay the amount.
2. Through certain CAse laws, the professionals have clarified that the amount taken is Loan and not deposits, so if these are not deposits then what to repay and why to repay
3. Wait for MCA for issuing further clarification on this
4. And, if you have filed Form DPT 4, then, the amount is regarded as Deposits and it should be repaid before 31st March, 2015
5. File Application before Tribunal/ CLB before 31 March 2015 for getting further time for repaying the deposit amount
Best Solution is repay the amount by the end of 31st March 2015 or file application with CLB, if you are unable to pay it by 31st March 2015
Penalty if non Compliance of Section 74, Min 1 Crore and Maximum 10 Crores.
Now, the question is whether Loans taken from Directors, or their relatives or shareholders are actually termed as Deposits or not as per Deposit Rules 2014. Practically, it is not possible for companies to repay the amounts taken in lakhs to repay the amount in just 1 year's time. The loan taken by the Companies especially by Private Limited Companies have been invested further in the Assets of the Company and to repay that amount is difficult for the entrepreneurs. Their business operations may suffer losses and disturbances.
It's time for Professionals to guide their clients/ business people to take right steps further;
1. Not to file Form DPT 4 and not to repay the amount.
2. Through certain CAse laws, the professionals have clarified that the amount taken is Loan and not deposits, so if these are not deposits then what to repay and why to repay
3. Wait for MCA for issuing further clarification on this
4. And, if you have filed Form DPT 4, then, the amount is regarded as Deposits and it should be repaid before 31st March, 2015
5. File Application before Tribunal/ CLB before 31 March 2015 for getting further time for repaying the deposit amount
Best Solution is repay the amount by the end of 31st March 2015 or file application with CLB, if you are unable to pay it by 31st March 2015
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