Share application money

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2016 Dear Experts

If a co. could not make allotment of shares within 60 days of receiving the application money and co. doesn't want to refund the application money now. what can be done in this case? Is there any way to escape penalty?

Thanks.

c.bakshi

c.bakshi (Expert)
Follow

27 June 2016 Make a Allotment by Issue of New Offer Letter with Fresh Date. but company can't hold that money without allotment otherwise it will come under the definition of deposit as per section 73 the non compliance of which may lead to harsh penalty