Loan from shareholders whether violation of any law

Respected Sirs/Madams,

Mr. X has given Rs. 5 lacs previously before 01.04.2014 to ABC p ltd, but due to new companies act, ABC p ltd had to return it to Mr. X.

Now NBFC takes loan say Rs. 5 lac @ 12 % p.a. from its shareholder Mr. X, who is also shareholder of ABC p ltd (which is not NBFC), and gives this amount amount @ 15% p.a. on the same date to ABC P Ltd/Ltd on the strength of guarantee of Mr. X. Is there any violation of Companies Act 2013 or any other law in these transactions?

Replies (1)

If the NBFC is of deposit accepting category one as per the RBI regulations, there is no issue in accepting the loan from Mr. X. 

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