Share Application money: Treatment as Deposit
My Company received Share application money against Compulsorily Convertible Debentures (CCD) in the year 2018 from parent Company outside India. CCD were issued through Private Placement under Section 42 of CA, 2013. The Company received some excess money against which CCD was not allotted. Also, Company failed to refund the money within the specified timelines, hence will have to pay interest as per Section 42.
Further, as per Companies (Acceptance of Deposit Rules), 2014 such amount shall be treated as 'Deposit'. The Company is already in the process of refunding this amount to the parent Company. My questions are:
(i) Since the Company neither "accepted" nor "invited" this amount in the form of Deposit, will Section 73 be applicable on this amount? If yes, what exactly is to be done by Company under Section 73?
(ii) The Company never intended to invite any amount as deposit, but due to some unavoidable delays, the nature of this amount turned to being a Deposit. Will Company be penalised under Section 76A?
(iii) Since the Rule says "such amount shall be treated as a deposit under these rules" Does this mean we have to only look into the Rules and not the Sections related to Deposits?
(iv)What else Company has to Comply with other than processing refund and compounding with RBI?