loan repayment in cash to director

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2010 A director transferred Rs. 5 lakhs amount by cheque to the company in need, and when there was funds flow, took back the amount of Rs. 1,00,000/- in cash five times. Can the director take back the loan in cash. Th amount was withdrawn by way of self cheque. Kindly guide

k c joseph varghese

k c joseph varghese (Expert)
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29 September 2010 The loan should be paid back only by a/c payee cheque.

CA.Pujah

CA.Pujah (Expert)
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29 September 2010 It should be repaid by an a/c payee cheque.
If paid in cash, receipt should be duly stamped & acknowledged.

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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01 October 2010 Section 269T provides as under:

No branch of a banking company or a co-operative bank and no "other company" or co-operative society and no firm or other person shall repay any loan or deposit made with it otherwise than by an account payee cheque or account payee bank draft drawn in the name of the person who has made the loan or deposit if-

the amount of the loan or deposit together with the interest, if any, payable thereon is twenty thousand rupees or more

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