deemed public deposits

Pvt ltd 2602 views 3 replies

sekhar

student-PE-II`

41 Points Joined October 2008

I confronted the below issues regarding a private limited company..................

1. Any private limited company registered under the Companies Act as a firm can collect the deposits from the public

misdirecting or misrepresenting the public as " PAY DAILY NOMINALLY AND GET HUGE RETURNS IN FUTURE ..SAY FOR 2 YEARS OR ELSE YOU WILL GET A PIECE OF LAND IN OUR LAND STOCK"...

2. Another grave fraud is showing such deposit amount as advance from customers for land purchase.

I can't understand why the Regulatory authorities are silent in these corporate frauds...even after many broken money laundering schemes like GOLDEN HARVEST INDIA PVT. LTD.

still in my query is whether these private limited companies had Banking license ...

if they don't have ...then they are doing massively in southern parts of india and regulatory bodies, state governments aware of it that they are intentionally cheating the public

Our civil law or criminal law saying the aggrieved party should come forward and complaint in this regard. Police officials not interested in taking this case as sumuto because many financial and political parties involved in it.

A lot of technical defects in our law is utilised by our corporates.

The above story is about a private limited company named and styled "AGRI GOLD FARMS AND ESTATES PVT LTD"

PLEASE PROVIDE ME THE ANSWERS FOR MY QUESTIONS.

Replies (3)

Ajay Mishra

Company Secretary

74342 Points Joined March 2009

Dear Friend

1. Deposits in case of Private Limited Company

Private Company is prohibited to accept any invitation or acceptance of unsecured loans/deposits from the persons other than its members, directors or their relatives. Therefore a private company can accept deposits through private arrangement from its members, directors and their relatives.

Rule 2(b)(ix) exempt any unsecured loan money received from directors and shareholders from the definition of deposits. According to Rule 2(b)(ix), any amount received from members of a private company limited by guarantee are not exempt.

Rule 3 of Companies (Acceptance of Deposits) Rules, 1975 deal with the limit upto which a company can accept deposits/ loans.

For any invitation and acceptance of unsecured loan/deposits from relatives of directors and member, the company will have to file a statement in lieu of advertisement in accordance with the provisions of Rule 4A of the Companies (Acceptance of Deposits) Rules, 1975. The company will also have to file annual return of deposits in accordance with Rule 10.

2. Consequences of acceptance of deposit by Private Limited Company

If a private company acceptance an amount, which may be classified as deposit under section 58A read with Companies (Acceptance of Deposits) Rules, 1975, it will cease its status of a private company and has to make all the compliances for such deposits as per the requirement of said rules, as well as to comply with all the provisions as may be applicable on public limited company such as section 58A, 58AA, 58AAA, 81, 256, 257, 198, 268, 269, Schedule XIII, 274(i)(g), 295, 297, 300, 301, 372A, etc

sekhar

student-PE-II`

41 Points Joined October 2008

Sir,

Thanks for Your reply

The Collection of deposits by a Private Limited Company is showing as advance

Technically they are just taking advance but intentionally they are driving towards cheating or diverting public mind that they are in certain activity.

My query is as a student how can we prove that they are collecting deposits without licence or not mobilising the funds from directors. relatives etc

Company is just collecting the funds by showing that they have the worth of land stock just as in case GOLDEN HARVEST INDIA PVT. LTD.

What is way we have to prove the intention of the company with in our permitted law