Deposits section 74

526 views 4 replies

If non eligible co. has accepted  deposit exceeding 50% of the paidup capital and free reserve and it does not repay by March 2014. Then what are the penalties and prosecution??

Replies (4)
Rule 21 of the deposits rules 2014 Punishment for contravention.- If any company referred to in sub-section (2) of section 73 or any eligible company inviting deposits or any other person contravenes any provision of these rules for which no punishment is provided in the Act, the company and every officer of the company who is in default shall be punishable with fine which may extend to five thousand rupees and where the contravention is a continuing one, with a further fine which may extend to five hundred rupees for every day after the first day during which the contravention continues.

But section 74 says if the co. fails to repay deposit within time specified then co. shall be punishable with fine which shall not be less than one crore which may exyend to 10 crores. Further officer in default will be punishable with not less tha 25 lakhs which may extend to 2 Crores.

What i have mentioned is the general penalty for violation of provisions relating to deposits.
Originally posted by : gaurrav
But section 74 says if the co. fails to repay deposit within time specified then co. shall be punishable with fine which shall not be less than one crore which may exyend to 10 crores. Further officer in default will be punishable with not less tha 25 lakhs which may extend to 2 Crores.

Then these are also applicable along with general penalty?? I just wanted to confirm as for a Private Company or a public co. having net worth of less  than 100 Crores these penalties are too hefty.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details
Company
06 July 2026
C.A./CA Inter OR pursuing C.A./GST/Accounts/Audit/IT - Head

Arvindkumar Maniar & Co.

Rajkot

CA

View Details
Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details