Hi,
One of my clients, a public company is converted from a pvt ltd co.
When the pvt ltd co was in existence it had accepted unsecured loans from its promoters and as per Acceptance of deposit Rules it is not covered under the definition of deposits.
But now it is a pub co, so I want to ask whether that amount will be counted in deposits or not??
Reply ASAP.
Thanks in Advance
As per my opinion deposit provisions should not be applies retrospectively and it should not be treated as deposits. I am quite confident about the same but don't have anything in support.
But from now onwards for any fresh activity like renewal of deposit etc you have to comply with deposit provisions.
Wait for other expert opinions.
Yes, existing unsecured loans would not covered under the provisions of Acceptance of Deposit Rules, 1975 because it relates only to the Invitation or Acceptance or Renewal of any deposit.
However, limits as specified under Rule 3(2) would apply.
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